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)
