Drilling for … steam?
November 12. 2007
Greetings investors!
I’m making some money on a drilling story, only it’s not mineral based … or is it?
I got into Western Geopower Corp (WGP.TSX-V) last summer when I learned the Vancouver, Canada company had signed a jv with a powerful California power company. The price tripped over $0.42 Cdn per share today, becoming the latest in a series of thermal energy exploration stocks to ‘take a stroll’.
California has a legal deadline for ’going green’, which means power companies must begin generating kilowatts from what they can take from the air, sea, or land. WGP hopes to supply them by drilling off underground volcanic heat sources, which in turn will power steam turbines. The key is whether they can find a source of water down below, in conjunction with the thermal heat source.
Ok, they’re not drilling for gold, nickel, copper, pgms, lead, coal, zinc, or moly. But the methodology of drilling for ’steam’ is similar, and the payoff could just as good if not better. The best part is simply this: the company will never face any restrictions on operations due to environmental concerns.
Also, like a mineral resource, a geothermal energy ‘deposit’ can be measured and expanded, two very important factors for investors.
WGP has the leases to The Geysers Geothermal Field located on 1,000 acres about 75 miles from San Francisco. The capacity of the wells there is projected at 25 megawatts, with production anticipated by 2010. Drilling is scheduled to begin now, and an off-take agreement has been signed with Pacific Gas and Electric. The company raised over $18 million to cover drilling and/or power plant construction costs earlier this fall.
I’ve got a hinky feeling the drilling underway now is showing some signs of success, which would explain the sudden rise in WGP share prices in lieu of a press release.
Careful out there.
Kb
The BarkerLetter on November 12th 2007 in Commodity investing, Environment, United States
george lee responded on 24 Nov 2007 at 1:05 pm #
having purchased a few shares of wgp,ifind the article most interesting.wgp along with tirex resourses tsx .v.tsx are promoted by related investment newsletters which provied enough information for one to zero in on the names of the companies on google.
george lee responded on 24 Nov 2007 at 1:11 pm #
having purchased a few shares of wgp i find the information interesting. wgp and tirex resources tsxv are promoted by two related investment nmewsletters which provided enough information for one to xzero in on the names of th companies on google.
The BarkerLetter responded on 28 Nov 2007 at 2:35 pm #
Yeah I think this one will go to a buck, beyond that who knows?
Kb