Western GeoPower (fka WGP.V)

[tsl444]

In regard to the recent rig test announcement at The Geysers:

"The high productivity of the well suggests significant cost savings may be realized through the drilling of fewer wells than anticipated if a similar successful outcome is repeated in future wells."

The Western GeoPower Unit 1 plant is projected to start commercial operations in early 2010. Previous estimates by GeothermEx suggested a requirement for nine or ten wells at an average of 3.66 MW per well, however, the number will be revised downwards should future well capacities continue to exceed expectations.

This could be very good news. I believe the drilling costs are about $4MM/well. So if they can drill fewer holes, that will be a big help towards decreasing the required CAPEX.