Vulcan Power Enters Drill Rig Agreement

Bend, OR -- In an effort to streamline development of its geothermal projects, Vulcan Power Company, the leading new geothermal energy development company, announced today it has entered into a joint venture agreement to form a new company which will own up to 12 drill rigs.

With this joint venture, Vulcan will avoid the lengthy delays and considerable uncertainty other geothermal developers are experiencing in securing drill rigs for project sites in order to complete exploration and development milestones.  The joint venture now owns two large state-of–the-art double rigs capable of drilling to 10,000 feet and has options to acquire 10 brand new triple rigs by the end of 2007, each capable of drilling to 15,000 feet. 

This Vulcan drill rig joint venture ensures that Vulcan geothermal projects will have rigs capable of completing all its wellfield development for signed geothermal PPAs totaling 420 MW.

Date: July 3, 2006.  Contact: Jim Kiser