Western GeoPower Acquires Geothermal Lease at The Geysers

Western GeoPower Corp. acquired a geothermal lease granting the right to redevelop the geothermal reservoir and build a new plant for electricity generation in Northern California for the Unit 15 Steam Field covering 421 acres within The Geysers Geothermal Field.

Commercial geothermal power has been generated continuously at The Geysers Field since 1960, the present generation level being about 900 megawatts (MW). A commercial power plant of 62 MW (gross) capacity, known as P.G. & E. Unit 15, operated at the leasehold between 1979 and 1989. It is now recognized that the Unit 15 plant was oversized for the available resource, the release states. For this reason, the wells supplying the plant experienced a rapid decline in productivity, similar to the decline experienced throughout The Geysers Field at that time. The plant was shut down in 1989 and eventually dismantled, the wells plugged and abandoned. “We expect that Unit 15 can be developed more quickly than the implementation of an exploration project, by taking advantage of an immediately available resource database, production history, regional infrastructure, systems efficiencies and technical experience,” said Kenneth MacLeod, President and Chief Executive Officer of Western GeoPower. Since the mid-1990s, the rate of decline in well productivity at The Geysers has eased and reservoir pressure has stabilized due to increased injection into the reservoir. Reservoir pressure under the Unit 15 leasehold is believed to have recovered since the wells stopped production. Western GeoPower will retain GeothermEx, Inc. of Richmond, California, to provide an independent assessment of the resource.
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