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DEEP continues to advance the Company’s first ~35 Megawatt (MW) geothermal power facility in southeastern Saskatchewan; as a Canadian first, the facility is planned to produce emission-free baseload power. This initial facility is planned for commissioning in early 2025. As envisioned, a four-stage build aims to scale the project to produce approximately 140 MW of geothermal power generation in approximately 35 MW increments.

Phase 1 development plans include one ~35 MW gross geothermal power facility. Negotiations are ongoing with SaskPower to increase the 5 MW Power Purchase Agreement, secured in 2017, to align with phase 1 development that averages ~35 MW annually of baseload geothermal power. Upon completion of phases 1 through 4, approximately 140 MW of geothermal baseload power is planned to be produced in four ~35 MW blocks. 35 MW is roughly equivalent to the power required to supply 35,000 households.

Some recent highlights include:

  • Completed successful Feasibility Engineering in September;
  • Design Basis Memorandum (DBM) engineering currently underway by Calgary-based SCOVAN Engineering;
  • Negotiations on-going for enhanced SaskPower Power Purchase Agreement (PPA);
  • Secured 80 acres of land under an 18 month offer to purchase for the surface area requirements for the first planned ~35 MW geothermal facility;
  • Resolved critical engineering challenges such as corrosion mitigation and reducing parasitic pumping power;
  • Reviewing optimization strategies to build low emission Natural Gas (NG) power generation with Carbon Capture and Storage (CCS) for parasitic power requirements (primarily brine pumping). This aligns with the Federal Government’s recent unveiling of a 50% tax credit aimed at spurring investment in carbon capture and storage technologies;
  • Engaging SaskPower and SaskEnergy on use of natural gas and CCS technologies to help address parasitic loads and related issues;
  • Completed Canada’s first large volume 53-day production and injection geothermal pump test;
  • Entered a strategic partnership with Prairie Lithium to exchange subsurface mineral permits and establish an Area of Mutual Interest (AMI) to explore future lithium opportunities;
  • Actively engaged with stakeholders, including local communities. A meet and greet in Torquay was well received by local officials and residents;
  • Drilled and tested the Border-06 stratigraphic step out well to demonstrate lateral geological continuity of the geothermal reservoir properties. Production and injection testing demonstrated excellent productivity.

DEEP’s government subsurface lease for geothermal power is a contiguous 39,120 hectare (99,667 acre) block. In addition to geothermal power production, and with proper regulatory approvals, separate stratigraphic intervals within this subsurface lease could also be used for CO2 storage. DEEP is exploring strategic CO2 storage opportunities to develop a major multi-use CO2 storage field.

In the coming months, DBM engineering for the surface facilities will be completed through SCOVAN engineering with opportunities to maximize the economics of the project prior to reaching a Final Investment Decision (FID) strategy.

Extensive reservoir engineering data has been obtained from DEEP’s 6 test wells. Several subsurface field development options have been evaluated to finalize the optimal drill hole spacing, number of wells and options for mitigating corrosion tendencies of brine on carbon steel. The geothermal field development will consist of 34 horizontal wells (18 production wells and 16 injection wells) to be drilled and completed from the location of the surface facility and 4 additional drilling pads. To prevent corrosion, all wells will be completed with carbon steel tubing using a non-metallic coating.

A final investment decision strategy is expected this fall along with the SaskPower PPA. DEEP is actively pursuing strategic partnerships and options to secure debt and equity, aligning with the full project financing set to commence later this year. Subsurface engineering will be 3rd party reviewed by GeothermEx (a Schlumberger Company). GeothermEx due diligence has resulted in more than USD$14 billion in project investments and 8.5 GW of power, more than half of the world’s operating geothermal capacity today. The GeothermEx Report is the gold standard for geothermal investments.

About DEEP Earth Energy Production:

DEEP is developing geothermal resources to meet increasing energy needs with sustainable, clean and renewable energy. The company is advancing its first planned ~35 MW geothermal power facility in southeastern Saskatchewan that can produce emission-free baseload power. This first facility is planned for full commissioning by early 2025. A staged build aims to increase the project to produce approximately 140 MW of renewable power generation.

For more information on DEEP, please visit www.deepcorp.ca or contact:

President & CEO, Kirsten Marcia: (639) 638-0484, info@deepcorp.ca
Wade MacBain, Investor Relations: (306) 717-1818, wmacbain@deepcorp.ca
Public Relations & Media, Cynthia Block: (306) 230-8262, cynthia@blockcommunications.ca

Future Oriented Financial Information Disclaimer:

Some of the statements in this news release may be forward-looking statements or statements of future expectations based on currently available information. Such statements are naturally subject to risks and uncertainties. Factors such as the development of general economic conditions, future market conditions, unusual catastrophic loss events, changes in the capital markets and other circumstances may cause the actual events or results to be materially different from those anticipated by such statements. DEEP, including its directors or officers, do not make any representation or warranty, express or implied, as to the accuracy, completeness or updated status of such statements. Therefore, in no case whatsoever will DEEP or its directors or officers be liable to anyone for any decision made or action taken in conjunction with the information and/or statements in this update or for any related damages. You should consult your professional advisors before deciding to make an investment decision in DEEP.