Sierra Geothermal Power Corp. (TSX VENTURE: SRA) ("SGP" or the
"Company") is pleased to provide an update on its recent efforts to
enhance shareholder value. These efforts remain focused primarily
on two strategies. The first of these is a structured process to
find a suitable merger or joint venture partner or a purchaser for
the Company, assisted by its financial advisor, Jacob Securities
Inc. This effort was originally announced in a January 26, 2010
news release, and is being managed by Sierra's Special Committee.
The second strategy remains focused on adding value by developing
projects to the power production stage.
Merger, Joint Venture or Sale
In February 2010, Jacob Securities circulated a detailed
Confidential Information Memorandum to select parties, inviting
them to engage Sierra in a formal process. Groups have shown active
interest, and have initiated due diligence reviews in SGP's data
room.
Exploration and Development Update
SGP is currently drilling a well at Alum and has recently
completed a well at Silver Peak. Both wells are drilled as part of
the US Department of Energy's Geothermal Technologies Program grant
award on a 50/50 cost share basis between SGP and the US
government.
Silver Peak Project
Drilling of the core well 38-11 on the Silver Peak project has
been completed to a total depth of 1,649 meters (5,409 feet). The
primary targeted structure, a major fault zone, was encountered in
the interval from 1,515 meters to 1,631 meters (4,970 feet to 5,350
feet). SGP plans to complete the well with casing to allow for
ongoing fluid testing and temperature measurements.
Alum Project
While drilling the coil tube slim-well 26-19 at Alum a zone of
high permeability was encountered at 1,187 meters (3,895 feet) to
1,341 meters (4,400 feet). The coiled tube rig was released and the
core rig from Silver Peak will be moved to Alum to resume drilling
at 26-19. SGP plans to use the core rig to install a second liner
to the bottom of the well, which should allow for temperature
measurements to be made, in particular within the permeable zone.
Once the preliminary temperatures are logged possible next steps
include a flow test of the permeable zone and coring the well
deeper.
"We are encouraged by the level of permeability that was
encountered in these two exploration wells. We are eager to see the
stable temperature results as soon as they can be obtained as this
is the key element, combined with permeability (flow rate), for
commercial production," said Gary Thompson, SGP's President and
Chief Executive Officer.
Reese River Project
Temperature measurements were recently taken from Reese River
temperature gradient wells. Of the 10 wells drilled from 30 meters
(100 feet) to 304 meters (1000 feet), gradients ranged from 100 to
200 degrees Celsius per kilometre. This data is encouraging,
indicating economic temperatures, and warrants a future extension
of the thermal gradient program at Reese River.
In collaboration with the University of Nevada, Reno and the
University of British Columbia, SGP's geologists are working on a
novel approach synthesizing geological and geophysical data
(magnetotelluric inversion data along with Z-TEM data) to create a
conceptual 3D project model, helping us better understand Reese
River's subsurface geology. Results of this collaboration are
expected shortly.
Barren Hills Project
The Environmental Assessment is still in progress with the
Bureau of Land Management and the US Forestry Service. Completing
this is the first step before we can undertake significant
exploration work on the project.
About Sierra Geothermal Power Corp.
Sierra Geothermal Power Corp is a Vancouver-based geothermal
energy company focused on the exploration and development of clean,
sustainable power in the Western USA. SGP has 100% control over 365
square kilometres (90,000 acres) of geothermal properties in Nevada
and California. SGP's projects have a combined total estimated
capacity of almost 400MW. The 400MW of power potential is comprised
of 130MW on Tier One projects that has been independently estimated
by GeothermEx Inc., with a probability of 90 per cent. SGP's
geologists estimate capacity of 249MW on Tier Two projects, with a
probability of 90 per cent. Both estimates are based on previous
work including geothermometry, geophysics, temperature gradient and
slim-well drilling as well as assumptions using a Monte Carlo
simulation model. One megawatt (MW) is enough to power 800 homes.
In the absence of a merger, joint venture or sale (discussed
above), SGP intends to finance the ongoing development of its
portfolio of projects by utilizing a combination of corporate
equity, joint venture partnerships and project debt, with the
support of US government grants, tax credits and loan guarantees.
For more information visit www.sierrageopower.com.
On behalf of the Board of Directors
Gary Thompson, Chief Executive Officer, President and
Director
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release may contain forward-looking statements. All
statements, other than statements of historical fact, included or
incorporated by reference in this news release are forward-looking
statements, including, without limitation, statements regarding
activities, events or developments that Sierra expects or
anticipates may occur in the future. Forward-looking statements can
be identified by the use of forward-looking words such as "may",
"would", "could", "expect", "intend", "plan", "estimate",
"anticipate", "believe" or "continue" or similar words or the
negative thereof. Forward-looking statements in this news release
include statements about SGP plans to complete well 38-11 with
casing to allow for ongoing fluid testing and temperature
measurements, SGP plans to use the core rig to install a second
liner to the bottom of the Alum well, which should allow for
temperature measurements to be made, in particular within the
permeable zone, once the preliminary temperatures are logged
possible next steps include a flow test of the permeable zone and
coring the well deeper, results of this collaboration with the
University of Nevada are expected shortly and SGP intends to
finance the ongoing development of its portfolio of projects by
utilizing a combination of corporate equity, joint venture
partnerships and project debt, with the support of US government
grants, tax credits and loan guarantees.
There can be no assurance that the plans, intentions or
expectations upon which these forward-looking statements are based
will occur. Readers are cautioned not to place undue reliance on
these forward-looking statements, which are not a guarantee of
performance and are subject to a number of uncertainties and other
factors that could cause actual results to differ materially from
those expressed or implied by such forward-looking statements.
These factors include general economic and market conditions,
changes in the law, actions of competitors, drill results and other
changes in circumstance, and Sierra's ability to implement business
strategies and pursue its business plan. In addition, all
forward-looking statements involve risks and uncertainties,
including the risks and uncertainties detailed in SGP's filings
with the applicable Canadian securities commissions, copies of
which are available at www.sedar.com. We urge you to carefully
consider these factors.
All of the forward-looking statements contained in this news
release are expressly qualified in their entirety by this
cautionary statement. The forward-looking statements included in
this news release are made as of the date of this news release and
Sierra undertakes no obligation to publicly update such
forward-looking statements to reflect new information, subsequent
events or otherwise, except as required by law.
Neither the TSX Venture Exchange nor its Regulation Services
Provider accepts responsibility for the adequacy or accuracy of
this release.
Contacts: Sierra Geothermal Power Corp. Gary Thompson President
& CEO (604) 683-0332 / 1-800-563-5631 info@sierrageopower.com
Sierra Geothermal Power Corp. Anthony Srdanovic Investor Relations
(604) 683-0332 ext. 115 asrdanovic@sierrageopower.com
www.sierrageopower.com
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