WESTERN GEOPOWER ANNOUNCES FORMATION OF SPECIAL COMMITTEE TO CONDUCT STRATEGIC REVIEW PROCESS AND PRELIMINARY RESULTS OF RESERVOIR MODELING
Corporate news announcement processed and transmitted by Hugin AS. The issuer is solely responsible for the content of this announcement. ---------------------------------------------------------------------- -------------- NEWS RELEASE DATE: July 14, 2009 FOR IMMEDIATE RELEASE TRADING SYMBOLS: TSX-V (CANADA): WGP.V FRANKFURT: WE6.F WESTERN GEOPOWER ANNOUNCES FORMATION OF SPECIAL COMMITTEE TO CONDUCT STRATEGIC REVIEW PROCESS AND PRELIMINARY RESULTS OF RESERVOIR MODELING VANCOUVER, Canada, July 14, 2009, TSX Venture Exchange Trading Symbol: WGP - Western GeoPower Corp., a renewable energy company, today announced that the company's Board of Directors has established a Special Committee to review, consider and evaluate strategic alternatives that may be available to the Company. The Special Committee will be chaired by Daryl Clark and will include Harry Knutson and Gudmundur F. Sigurjonsson, all of whom are currently members of the Board. No timetable has been set for completion of the Special Committee's review, and there can be no assurance that this process will result in any specific strategic transaction. The Company does not intend to update its progress with respect to potential strategic transactions unless the Board of Directors has approved a definitive course of action. The Company previously announced that a review conducted by independent consultant GeothermEx, Inc. of data from the drilled portions of the Company's Unit 1 leasehold had determined that, based on certain assumptions, the maximum capacity for the Company's Unit 1 power plant is 35 MWe (gross). In conjunction with a proposed financing, the Company retained GeothermEx to develop and calibrate a numerical reservoir model of the entire Geysers field including the Unit 1 leasehold incorporating the down-hole data from the newly drilled wells on the leasehold, plus the production and injection histories of all the wells at The Geysers. The Company has received GeothermEx's preliminary reservoir model update, which indicates that a plant capacity of 35 MWe (net) for five years, followed by a capacity of 32.5 MWe (net) for the remaining project life, can be maintained but only if the undrilled portions of the Unit 1 leasehold prove as productive as the areas drilled to date. In the event the undrilled portions prove to be less productive, GeothermEx's preliminary reservoir modeling indicates a minimum of 25 MWe (net) capacity can be sustained over the project life. Included in the Special Committee's mandate is determining the various alternatives for advancing the Unit 1 project in light of the preliminary reservoir modeling results. Two initial potential strategies are being evaluated. The first is to commence the initial plant output at 25 MWe (net) and the second is to expand the drilling program to include lands on the Unit 1 leasehold where resources have not yet been proven. About Western GeoPower Corp. Western GeoPower Corp. is a renewable energy company dedicated to the development of geothermal energy projects for the delivery of clean, sustainable, baseload electricity generation. The Company is developing The Western GeoPower Unit 1 geothermal power plant at The Geysers Geothermal Field in Sonoma County, California, United States; the South Brawley geothermal project in Imperial County, California, United States; and the South Meager geothermal project in British Columbia, Canada. On behalf of the Board of Western GeoPower Corp "Kenneth MacLeod" Kenneth MacLeod, President & CEO Cautionary Note Regarding Forward-Looking Statements Certain statements in this press release contain forward-looking information within the meaning of applicable securities laws in Canada ("forward-looking information"). The words "anticipates", "believes", "budgets", "could", "estimates", "expects", "forecasts", "intends", "may", "might", "plans", "projects", "schedule", "should", "will", "would" and similar expressions are often intended to identify forward-looking information, although not all forward-looking information contains these identifying words. The forward-looking information in this press release includes, but is not limited to: a plant capacity of 35 MWe (net) for five years, followed by a capacity of 32.5 MWe (net) for the remaining project life, can be maintained but only if the undrilled portions of the Unit 1 leasehold prove as productive as the areas drilled to date; and, in the event the undrilled portions prove to be less productive, GeothermEx's preliminary reservoir modeling indicates a minimum of 25 MWe (net) capacity can be sustained over the project life. The forecasts and projections that make up the forward-looking information are based on assumptions which include, but are not limited to: actual geothermal resources will be consistent with projected resources; the Company is not subjected to any material adverse events normally associated with exploration, development and production of natural resources; the Company is not subjected to additional governmental regulation and that political attitudes towards geothermal production does not change; the Company is able to remain in compliance with its debt obligations; the Company's resource estimates are accurate; the Company's insurance is adequate and that it does not incur any material uninsured liability; the Company is able to comply with environmental regulations; the Company has access to suitable infrastructure; no title defects affect the Company's properties; the Company receives necessary permits on acceptable terms; no material new competition; no significant fluctuation in currency exchange rates and interest rates; the Company is able to access additional capital; no material fluctuations in energy prices; continued access to the Company's key personnel; and, no conflicts of interest arise. The forward-looking information is subject to risks, uncertainties and other factors that could cause actual results to differ materially from historical results or results anticipated by the forward-looking information. The factors which could cause results to differ from current expectations include, but are not limited to: actual geothermal resources may differ from projected resources; the development of geothermal projects by third parties near the Unit 1 project could adversely affect actual geothermal resources available to the Unit 1 project; risks normally associated with exploration, development and production of natural resources; risks relating to government regulation; risks relating to indebtedness; risks relating to the reliability of resource estimates; no history of geothermal production; insurance and uninsured risks; environmental risks and hazards; lack of access to required infrastructure; land title defects; risks relating to obtaining permits on acceptable terms; competition; fluctuations in currency exchange rates and interest rates; risks relating to raising additional capital; fluctuations in energy prices; reliance on key personnel; conflicts of interest; and, other risks described in the Company's Management Discussion & Analysis and other continuous disclosure documents. All forward-looking information in this press release is qualified in its entirety by this cautionary statement and, except as may be required by law, the Company undertakes no obligation to revise or update any forward-looking information as a result of new information, future events or otherwise after the date hereof. The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release. For more information or to be put on our email list, please contact Nicole Robson - Marketing and Media: Office (604) 662-3338 or US/Canada Toll Free: 1-866-662-3322, email: info@geopower.ca Investor Relations: ir@geopower.ca --- End of Message --- Western GeoPower Corp. 837 West Hastings Street Suite 411 Vancouver, BCV6C 3N6 Canada WKN: 254049; ISIN: CA95827Q1037; ;
