Western GeoPower, listed on Toronto’s Venture Exchange (WGP) announced that the four wells drilled to date at the company’s Unit 1 project at The Geysers Geothermal Field are considered to have sufficient power capacity behind pipe to satisfy the minimum requirements for project financing. Further drilling has to be deferred until receipt of project financing to construct the 35 MW power plant. This is anticipated for the second quarter of 2009.

“Our original forecast called for the drilling of up to six wells to satisfy the anticipated banking requirement of 60% of the resource being behind pipe,” said Kenneth MacLeod, President & CEO of Western GeoPower. “Having achieved the resource target with four wells enables us to significantly reduce our monthly expenditures until receipt of project financing, by focusing on permitting and engineering issues during the current period of financial market instability.”

Source: Company release