August 22, 2008
Sierra Geothermal Power Reports Second Quarter Financial Results
VANCOUVER, BRITISH COLUMBIA--(Marketwire - Aug. 22, 2008) -
NOT FOR DISTRIBUTION TO UNITED STATES NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES. ANY FAILURE TO COMPLY WITH THIS RESTRICTION MAY CONSTITUTE A VIOLATION OF UNITED STATES SECURITIES LAW.Sierra Geothermal Power Corp. (SGP) (TSX VENTURE:SRA) today released financial results for its second quarter ended June 30, 2008.
As previously disclosed, SGP changed its year end to December 31 from October 31, effective December 31, 2007. References to the second quarter 2008 and the comparable period of 2007 are for the three months ended June 30, 2008 and July 31, 2007, respectively.
"The company has reached a significant stage of growth and we enjoyed a productive quarter developing our portfolio of projects," said Gary R. Thompson, President and CEO of SGP. "We have been very active developing our top five projects with permitting, conducting transmission studies, negotiating power purchase agreements and drilling."
For the three and six months ended June 30, 2008, SGP reported a net loss of $955,676 or $0.01 per share and $1,672,579 or $0.02 per share, compared to a net loss of $519,764 or $0.01 per share and $962,263 or $0.02 per share for the three and six months ended July 31, 2007. The loss increased mainly due to an increase in stock- based compensation expense, which increased to $473,204 and $752,102 for the quarter and six months ended June 30, 2008 from $154,799 for both the quarter and six months ended July 31, 2007.
For the three and six months ended June 30, 2008, SGP capitalized exploration expenditures totaling $1,449,707 and $3,796,459 compared to $521,524 and $2,906,426 exploration expenditures capitalized during the three and six months ended July 31, 2007.
As at June 30, 2008, SGP had working capital of $5,912,707 compared to working capital of $10,676,587 as at December 31, 2007.
The full text of SGP's unaudited interim financial statements and management discussion and analysis report is available on the Company's website at www.sierrageopower.com and on SEDAR at www.sedar.com.
Second Quarter Highlights
- Environmental Assessment decision received with a Finding of No Significant Impact (FONSI) from the U.S. Bureau of Land Management (BLM) for the Silver Peak project
- New Barren Hills project reserve estimate increased to five times greater than the previous assessment, estimating a 90% probability of generating at least 55 megawatts and a 50% probability that the reserve can support a plant of 117 megawatts
- New Reese River project reserve estimate doubled, estimating a 90% probability of generating at least 26 megawatts for 20 years and a 50% probability that the reserve can support a plant of at least 58 megawatts
- Three shallow temperature gradient wells at Reese River had recorded temperatures between 96 and 125 degrees Celsius (194 - 257 degrees Fahrenheit)
- Sierra Geothermal Power was ranked in the Top 10 in the TSX Venture Exchange's Clean Tech Sector, among TSX Venture Top 50 Emerging Companies
During the second quarter, the Silver Peak project was moved forward through an Environmental Assessment (EA) decision with a Finding of No Significant Impact (FONSI) from the U.S. Bureau of Land Management (BLM), representing the final stage in the federal environmental review process. SGP continued to pursue Notices of Intent and Geothermal Drill Permits for the 2008-2009 drilling program.
The Company also received two independent reports from GeothermEx Inc. which significantly increased the resource estimates on its Barren Hills and Reese River projects. The resource estimate at Barren Hills was found to be five times greater than originally assessed in 2004, estimating a 90% probability of generating at least 55 megawatts and a 50% probability that the reserve can support a plant of 117 megawatts. At Reese River, GeothermEx estimated a 90% probability of generating at least 26 megawatts and a 50% probability that the reserve can support a plant of 58 megawatts. With the improved estimates, SGP's top five projects have a combined resource capacity of approximately 150 megawatts at the 90% confidence level and 320 megawatts at the 50% confidence level, enough to power approximately 120,000 to 250,000 homes.
In May, SGP received drill results from three temperature gradient wells at Reese River. Wells 88-5, 62-4 and 18-33 were drilled to depths between 488 meters (1,600 feet) and 610 meters (2,000 feet), recording shallow hole temperatures between 96 and 125 degrees Celsius (194 - 257 degrees Fahrenheit).
In June, SGP was chosen by the TSX Venture Exchange as one of the top emerging public companies in the clean tech sector in the third annual TSX Venture 50. SGP was ranked eighth of the top 10 performers in the clean tech industry and was recognized as a company that is setting the bar in the sector.
About Sierra Geothermal Power Corp.
SGP is a Vancouver-based renewable energy company focused on the exploration and development of clean, sustainable geothermal power. Geothermal power plants produce long-term stable revenues and provide continuous base-load power, often at or above 95% capacity. SGP's 17 projects comprise a total of 88,000 acres of geothermal land assets in Nevada and California. The company intends to advance the development of its portfolio of projects through a combination of equity and/or joint ventures, while continuing to evaluate additional acquisitions. To find out more about Sierra Geothermal Power Corp. (TSX VENTURE:SRA) visit our website at www.sierrageopower.com.
On behalf of the Board of Directors,
Gary Thompson, President & CEO
This news release contains forward-looking statements that are subject to certain risks and uncertainties that may cause actual results to differ materially from those projected on the basis of such forward-looking statements. Such forward-looking statements are made based upon management's beliefs, as well as assumptions made by, and information currently available to, management pursuant to the "safe-harbor" provisions of the Private Securities Litigation Reform Act of 1995.
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