Well MC-8 itself was unable to sustain self-flow following air lifting due to physical constraints imposed by the deep water table.

To access the zone of permeability, GeothermEx has designed a deviated well starting from the valley floor with a projected true vertical depth of 1,660 meters and a total well bore length of below 2,000 meters. Wellbore simulation specifies that this well could flow at the equivalent of 6.4 MW of electrical production at a wellhead pressure of 140 psig. If the reservoir fluid find by this new well is at a greater temperature than the temperature measured in MC-8, or should the well be drilled deeper than the targeted 1,660 meters, the megawatt capacity of the well could increase accordingly.

The recent flow testing has corroborated our earlier projection of high temperature, reasonable permeability and a deep water table at South Meager, said Subir Sanyal, president of GeothermEx. While a deep water table has limited the well’s productivity, commercial productivity can still be achieved in a well drilled from the valley floor and targeted to the permeable zones in wells MC-8 and MC-6.

Many excellent and easily-accessible sites for new drill pads are available on the valley floor with ready access to the permeable zones in MC-8 and MC-6. The company plans to start the permitting process for the future wells once the snow has cleared sufficiently to allow surveying of the locations.

Our understanding of the geothermal reservoir characteristics at South Meager has increased substantially, said Kenneth Macleod, president and chief executive officer of Western GeoPower. We can now focus on securing the funding and permitting necessary to complete the drilling program and prepare a feasibility report on the project.

In 2004 and 2005, wells MC-6, MC-7 and MC-8 were drilled on a single pad about 700 vertical meters above Meager Creek on the shoulder of Pylon Peak.

The pad was situated closer to the projected up flow zone of the geothermal reservoir in comparison with earlier pads situated on the valley floor. Subsequent testing confirmed that two of the wells, MC-6 and MC-8 found important permeability and all three wells showed higher temperatures at shallower depth than previous wells. However, the presence of the geothermal water table at over 500 meters below the pad has inhibited the ability of the recent wells to self flow. The wells are being maintained for additional testing purposes and future enhancements are being considered, such as deepening and/or sidetracking, once additional permeable targets are identified by future drilling activities. Additional drilling is needed to define the full commercial power production potential for South Meager.

Western GeoPower continues to coordinate with provincial government agencies and key community and First Nations stakeholders in preparation for submission of an Application for Certification of the South Meager project under the BC Environmental Assessment Act. The company also is actively engaged in soliciting federal financing for project development and working directly with the British Columbia government on the updating of provincial geothermal legislation and regulations.