News
Nov 10, 2008Corporate Member News Release
CanGEA corporate member news release from Sierra Geothermal Power Corporation. SGP CEO Gary Thompson is also a CanGEA Board Member.
October 30, 2008
Sierra Geothermal Power Completes 100% Earn-In at Reese River
VANCOUVER, BRITISH COLUMBIA—(Marketwire - Oct. 30, 2008) - Sierra Geothermal Power Corp. (SGP) (TSX VENTURE:SRA) received notice from Western Geothermal Partners, LLC that it has satisfied all requirements for a 100% interest in the Reese River geothermal power project in Lander County, Nevada. Under the terms of the exploration agreement, SGP was required to meet various thresholds of option payments and work program expenditures totaling US$5,250,000. SGP has the option to buy out Western Geothermal’s one percent (1%) gross royalty.
The Reese River Project was highlighted earlier in the year in a news release dated June 17, 2008, in which the results of an independent report by GeothermEx Inc. doubled the resource estimate to a 90% probability (confidence level) of generating at least 26 megawatts (net) (MW) for 20 years and a 50% probability that the reserve can support a plant of at least 58 MW. The most recent drill results from Reese River include 5 temperature gradient wells. The wells were drilled to depths between 488 meters (1,600 feet) and 1,500 meters (5,000 feet). Bottom-hole temperatures recorded were between 96 and 150 degrees Celsius (194 - 302 degrees Fahrenheit).
SGP Corporate Update
Gary R. Thompson, President and CEO of SGP said:
“We wish to reassure our shareholders that we remain committed to building SGP into a leading independent producer of geothermal power and have the foundation upon which to achieve this goal.
SGP is aggressively pursuing its strategy of obtaining joint ventures partners to fund development of its Tier 1 properties and has received significant interest. However, market conditions have made implementation of this strategy more challenging. As such, in addition to the joint venture model, we are exploring all strategic alternatives to maximize shareholder value. We believe our stock is trading at a significant discount to its real value.
As of September 30 2008, SGP’s cash and term deposits totaled approximately $4.9 million with no debt. We believe this is a sufficient amount of capital to carry the company through these difficult times. Until SGP has secured additional capital on acceptable terms we will be extremely prudent with our existing cash resources. However, we still have sufficient funds to continue minimum exploration (non-drilling) and permitting work on our properties.
SGP’s competitive advantage over its peers is not only the size of its cash reserves but also its large pipeline of projects. SGP’s top five projects have a combined resource capacity of approximately 150 MW at the 90% confidence level and 320 MW at the 50% confidence level, enough to power approximately 120,000 to 250,000 homes. Total combined estimated resource capacity in the pipeline is 500 MW.”
The U.S. Geological Survey (USGS) has recently announced the first national geothermal resource estimate in more than 30 years. The results of this assessment show that the United States has the potential to generate half of its electricity demand (500,000 MW) through geothermal energy (http://www.usgs.gov - Released 9/29/2008).
SGP is pleased to announce the appointment of Anthony Srdanovic as SGP’s Investor Relations and Marketing Manager. Mr. Srdanovic previously worked at Ascenta Capital Partners Inc. and at Canaccord Capital Inc. His experience in the financial sector will help SGP publicize its core messages to the investment community. On October 15, 2008 SGP issued Anthony Srdanovic an option to purchase 100,000 common shares pursuant to the Company’s stock option plan. The options are exercisable at a price of C$0.14 per share.
On September 8, 2008, 93,750 escrow shares were cancelled and returned to the treasury of the Company. On September 19, 2008, SGP granted 10,000 employee incentive stock options at $0.23 per share.
In addition, SGP recently redesigned its website (http://www.sierrageopower.com) providing more in-depth information about the Company and its projects.
About Reese River
The Reese River project spans 25 square kilometers (6,145 acres) in Lander County, Nevada and is located 43 kilometers (27 miles) north of Austin and 322 kilometers (200 miles) west of Reno. The Reese River geothermal target has been independently rated as one of the top undeveloped geothermal prospects in Nevada.
Highlights of the exploration work completed to date include a total of 57 wells ranging from 100 meters to 1,500 meters in depth with recorded temperatures up to 150 degrees Celsius (302 degrees Fahrenheit). Temperature data show a large elevated thermal anomaly that is approximately 10 kilometers long in the northeast direction by approximately 3 kilometers wide. Geophysical surveys completed to date include seismic, gravity, magnetotelluric and radiometric surveys. Geological and structural mapping has been completed and geochemical analyses were undertaken on soil, water, rock and vegetation. Transmission and interconnect studies have been completed.
About Sierra Geothermal Power Corp
SGP is a Vancouver-based renewable energy company focused on the exploration and development of clean, sustainable geothermal power. SGP’s 17 projects comprise a total of 90,000 acres of geothermal land assets in Nevada and California. The company intends to advance the development of its portfolio of projects through a combination of equity and/or joint ventures. To find out more about Sierra Geothermal Power Corp. (TSX VENTURE:SRA) visit our website at http://www.sierrageopower.com.
On behalf of the Board of Directors,
Gary Thompson, President & CEO
This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management’s beliefs, as well as assumptions made by, and information currently available to, management pursuant to the “safe-harbor” provisions of the Private Securities Litigation Reform Act of 1995.
The TSX Venture Exchange does not accept responsibility for the adequacy or accuracy of this release.
CONTACT INFORMATION:
Head Office:
Sierra Geothermal Power Corp.
Gary R. Thompson, President & CEO
(604) 683-0332 or Toll Free: 1-800-563-5631
Email: .(JavaScript must be enabled to view this email address)
Website: http://www.sierrageopower.com
or
Investor Relations:
Anthony Srdanovic, BA
(604) 642-6179 or Cell: (778) 960-6553
Email: .(JavaScript must be enabled to view this email address)
Nov 09, 2008
CanGEA: International Energy Agency Member!
CanGEA Chairman & Executive Director Alison Thompson has confirmed that CanGEA is now a member of the International Energy Agency. CanGEA has been named to the IEA Geothermal Implementing Agreement (GIA) Executive Committee. CanGEA officially became a Sponsor Member of the GIA on 20 October 2008.
CanGEA will be participating in Annexes III, VII and VIII.
Alison Thompson and Membership & Outreach Director Craig Dunn will participate at the 21st ExCo Meeting and GIA-IGA Workshop in Madrid, in May 2009.
Nov 05, 2008
Advances in Geothermal Energy
An article from the GEA Weekly Update. The full version is available every week in your Member’s Only area.
Iceland: Kaldara Green Energy Developing Small Container-Based Plants
Press Release – October 27, Green Energy Made Feasible with Innovations in Geothermal Power Plants
A green energy company based in Iceland has made recent advances in geothermal technology (http://www.kaldara.com) that will make it possible to phase out smog-producing coal plants with geothermal power plants.
Someday soon the earth will be cleaner, thanks to efforts and innovations by Kaldara Green Energy, a Norwegian/Icelandic manufacturer of geothermal electrical power production equipment. According to output studies and specs on its latest KAPS (‘Kaldara Power System’) geothermal power plant, its innovations in geothermal technology will make good alternative to coal or natural gas.
KAPS are container based 5 MW geothermal power plants that can operate stand-alone and are also capable of working together in power farms. Because of small sizes KAPS can be more easily adopted to the environment than larger power plant structures. KAPS on-surface units can be used for all types of Wet/Dry and Binary/Flash geothermal Systems. The KAPS concept is to place a miniature power house in standard sized containers next to the production boreholes. The containers could be placed hidden into hillside areas or placed underground to avoid offensive structures in the environment, in full reconciliation with environmental groups. Using KAPS could therefore extend the reach of environmentally friendly exploitation for electrical power production worldwide. With the KAPS approach, boreholes can be harnessed at an earlier stage or within weeks after drilling is completed, whereas the conventional approach requires borehole evaluation period of 3-5 years before power production. Thus the earlier income alone can in most cases pay majority of the KAPS investment. KAPS units can be organized in power farms of same capacity as large geothermal power plants and even larger.
Outstanding efficiency is only to be compared with 30-50 MW highly advanced conventional geothermal power plants. By advanced technology and size standardization KAPS compares in cost effectiveness per MW with the larger conventional geothermal power plants. Cost comparisons show an outstanding economic attractiveness for production from geothermal steam with prices much lower than for coal or natural gas.
“It is a common misunderstanding that power production is more expensive by using renewable energy instead of fossil fuel and Iceland has already proven the case for geothermal power production,” says Skuli Johannsson, Manager of Kaldara Green Energy and author of a published article on KAPS. “It is challenging in that this is a unique ‘win-win’ situation of having the lowest power generation cost available, also being the most environmentally friendly.”
The KAPS technology lowers barriers of entry into the realm of geothermal power production, until now restricted by the number of production boreholes (10) necessary to make sufficient energy for an economical version of conventional geothermal power plants (30 MW). With modular and small-step approach of developing geothermal fields, boreholes can now be harnessed at an earlier stage to generate faster revenues. KAPS power plants are factory installed in containers. This flexible approach allows for reallocation in case of failing yield of boreholes.
Nov 05, 2008
Los Angeles Times: “Utilities putting new energy into geothermal sources”
Marla Dickerson from the Los Angeles Times looks into the California geothermal energy market. The California geothermal potential is the largest in the world, and while the residents want renewable energy, geothermal is still not fully understood.
Geothermal energy may be the most prolific renewable fuel source that most people have never heard of. Although the supply is virtually limitless, the massive upfront costs required to extract it have long rendered geothermal a novelty. But that’s changing fast as this old-line industry buzzes with activity after decades of stagnation.
Billionaire Warren E. Buffett has invested big. Internet giant Google Inc. is bankrolling advanced research. Entrepreneurs are paying record prices for drilling leases in places such as Nevada, where they’re prospecting for heat instead of metals.
To read the full article: LA Times: California and Geothermal
Nov 04, 2008
Corporate Member News Release
News from corporate member Western GeoPower:
Western GeoPower: STEAMING AHEAD AT THE GEYSERS – 50% of Resource Secured
On October 22, 2008 Western GeoPower Corp., a renewable energy development company, announced that 50% of the steam resource required to supply the planned 35 MWe Western GeoPower Unit 1 plant at The Geysers Geothermal Field in California, has been successfully placed behind pipe with the drilling and completion of the third well, WGP-3. The three wells have established a power capacity of 19.7 MW (gross) or 17.8 MW (net).
Western GeoPower signed a $500 million power purchase agreement in May 2008 with Northern California Power Agency and has ordered a turbine from Fuji Electric Corporation, with commercial production scheduled for April 2010.
Nov 03, 2008
The Globe and Mail: “Geothermal energy stocks should recover steam if government support lasts”
CanGEA members Sierra Geothermal Power Corporation and Western GeoPower mentioned in this Globe and Mail investment news article.
Few industries have escaped the credit crunch, as access to borrowed funds has become severely curtailed. But one sector that should bounce back relatively quickly when conditions loosen is geothermal energy. That’s because the heavy government support in the U.S. for the business of tapping the earth’s molten core for power make it a safer bet, even in a prolonged downturn, than other industries. That is, as long as lawmakers remain interested in promoting alternative energy if oil prices stay low.
To read the full article: The Globe Investor: Geothermal
Oct 28, 2008
The Globe and Mail: Geothermal’s Potential
Excellent article on geothermal potential and prospects in Canada from the Globe & Mail’s Report on Business.
SUBJECT: Prospects for geothermal energy.
SIGNIFICANCE: With fossil fuel prices well above historical average, geothermal energy investments are increasing worldwide. As geothermal technology improves, its weight in the energy mix is likely to increase substantially.
To read full article: Geothermal’s Potential
Oct 25, 2008
Geothermal Potential Report
The following is the Glitnir U.S. Geothermal Energy Market Report 2008. This is the second annual U.S. geothermal report from Glitnir.
The overall development of geothermal energy is very positive in the US. The installed geothermal power generation capacity has increased by 4% to 2,958 MW. The overall number of projects has increased and projects currently underway would expand installed capacity in the U.S. by a 100-130% in the years to come.
Compared to last year the industry is better positioned and availability of drilling rigs has improved. The joint efforts of the Bureau of Land Management (BLM) and the U.S. Forestry Service to speed up the process for leasing geothermal resources on lands they manage will also have a significant impact on the industry.
To download the report: Glitnir - U.S. Geothermal Potential
Oct 25, 2008
EcoFriendlyMag.com: Experts Say Time is Right for Geothermal
Experts Say Time is Right for Geothermal
Solar and wind have been the celebrities of renewable energy news coverage recently, but according to the United States Geological Survey and industry experts, geothermal energy is the next big thing.
The current economic crisis and rising costs of oil have led to a push for more geothermal energy production in the U.S., already the world’s leading producer.
In the first government assessment in 30 years, the USGS reports that the U.S. has “identified conventional” sources of geothermal energy that, if fully developed, are capable of generating 9,057 megawatts (MW). One megawatt is equal to 1,000 kilowatts, enough to serve about 1,000 U.S. homes, meaning 9,057 MW could power 9,057,000 homes.
To read the full article: Time is Right for Geothermal
Oct 22, 2008
RenewableEnergyWorld.com: The Art of Geothermal - Investing in and Capitalizing on the Heat Beneath
The lack of capital available to geothermal projects, especially during early development stages has stifled the growth of geothermal technology worldwide and poses a major challenge for this sector. Yet, with new prospects from technology innovations such as Enhanced Geothermal Systems (EGS) and low-temperature applications, investor’s interest is finally catching on and the number of those recognizing the huge geothermal potential to be tapped is ever increasing.
To read the full article: http://www.renewableenergyworld.com/rea/news/reinsider/story?id=53754
