South Meager Geothermal Project


Fact Sheet
Updated Dec 2007

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Project History
Since the late 1970s, the geothermal resource potential of the South Meager area has been investigated using various exploration techniques including geology, geochemistry, geophysics, and the drilling of numerous temperature gradient wells (slim-diameter wells used to measure subsurface temperature), deep slim wells and several full-diameter wells. During one flow test, one of the full-diameter wells – drilled by B.C. Hydro - was used to supply a 20 kW pilot geothermal power facility.

The results of the exploration work completed to date strongly indicates the presence of a geothermal reservoir with an areal extent of 4.5 to 7.5 km², and an average temperature of 220 to 240°C with a maximum measured temperature of 275° C. These attributes identify the South Meager field as a “high temperature” field (defined as one with 200°C or higher temperature) and a major geothermal site (defined as a site with 100 MW or more of potential development capacity).

GeothermEx Inc. of Richmond, California, an internationally recognized authority on geothermal energy, has concluded the South Meager Geothermal Project has the potential to support up to a 100 MW power plant (sufficient to supply electricity to 80,000 households). For economic reasons, most geothermal resources are evaluated commercially relative to potential lifetimes of 20 to 30 years. There are geothermal fields, however, that have been in production for more than 50 years and longer lifetimes are forecast.

It is anticipated that power from the South Meager Geothermal Project will be sold in western Canada and possibly in the western United States. The Company will seek to negotiate a long-term power sales contract in the course of confirming over-all project feasibility and will take advantage of the stated policy of the B.C. Government and B.C. Hydro that 50% of new power over the next 10 years be sustainable “green” power. The power will be wheeled through the transmission systems of the B.C. Transmission Corp.

The Company currently is proceeding with a resource confirmation program in which three production-size test wells were drilled in 2004-2005 to confirm the potential for commercial geothermal production; initial testing was carried out in 2005-2006 and further testing is planned for the 2007 fall season.

The Company also is proceeding with environmental and other studies relevant to completion of a Feasibility Study and preparation of an Application for an Environmental Assessment Certificate (Application) under B.C.’s Environmental Assessment Act.

Project Facilities
The project involves the design, construction and operation of physical facilities comprising production and injection wells, a gathering and injection system and a power generation plant at the plant site and a transmission line and inter-tie. A general description of the nature of these facilities follows.

Production and Injection Wells
Production wells will be constructed by directional drilling from a small number of drill pads (as few as three depending on the size of the reservoir), thus reducing both project costs and potential environmental impacts. Dry production holes also can be used to inject process water back into the reservoir. Anticipated well depths are 2,500 meters or less. Wells will be drilled using established technology similar to that employed in the oil and gas industry.

Fluid Gathering and Injection Systems
The assumed gathering system consists of pipelines and vessels that transport the steam from the wellheads to the power plant. The injection system handles two streams of injection fluids: 1) hot water remaining after flash in low-pressure separators; and 2) excess cooling water derived from steam condensation. Non-condensable gases are treated for H2S abatement (if required), yielding a sulphur by-product that often is used for fertilizer. This type of configuration has been employed successfully at several geothermal fields, including the Coso field in California that has been operating since 1987.

Power Plant
It is envisaged that the South Meager Project will utilize dual-flash turbine technology with two standard 55 MW (gross) generating units. This type of plant installation has been used at many geothermal projects worldwide.

Transmission Line
A 230 kV line tying in to the B.C. Transmission Corp. system will be required. Preliminary studies have identified two potential routes utilizing existing transportation corridors - the Pemberton Valley to tie-in at Pemberton; and the Birkenhead Valley to tie-in at Poole Creek.

Land Use Setting
The South Meager geothermal lease is located within Area C of the Squamish-Lillooet Regional District and within the Squamish Forest District of the Coast Forest Region.

The lease is located within the Sea-to-Sky Land and Resource Management Plan (LRMP) study area. Suggested land use guidelines for this LRMP currently are being drafted for submission.

The project area is within the traditional territory claimed by the Lil’wat Nation (Mount Currie Band) but the Band is not currently engaged in a treaty negotiation process. On December 8, 2003 the Lil’Wat Nation filed a writ of summons in B.C. Supreme Court assuming the Nation’s territorial claims to all of the Whistler, Pemberton and Mount Currie area. The Company has established a positive relationship with the Lil’Wat Nation and its development company, Creekside Resources Inc., and is engaged in continuing consultation on all aspects of the geothermal project.

The geothermal project’s primary works – wellheads, extraction system and generating plant - would be located on undeveloped Crown land previously utilized for timber cutting operations. Transmission line corridors identified to date are on Crown land with the exception of one private property on the Pemberton Valley option. Potential sites for a substation have not been determined.

Meager Creek Hot Springs is located 8 km southeast of the project area and is administered by the B.C. Ministry of Forests. The hot springs historically have been utilized by the public during summer months. Access to the hot springs currently is curtailed as a result of the destruction of an access bridge during a high water event on Meager Creek in October 2003.

All geothermal project facilities will be closed and reclaimed at the end of the project life. All buildings, pipelines, machinery and ancillary facilities will be removed and all areas re-vegetated.