SAN FRANCISCO, Nov. 14, 2011 /PRNewswire/ -- GeoPetro Resources Company (NYSE Amex: GPR) ("GeoPetro", "we", "our" or the "Company") is pleased to announce that it successfully completed its well workovers and plant maintenance and upgrade in Madisonville, Texas, recommenced its Madisonville Field production and reported its financial results for the third quarter ended September 30, 2011.
Madisonville, Texas – Recommencement of Production
In response to a temporary cessation of gas production, the Company performed successful workovers on the Ruby Magness #1 and Angela Fannin #1 wells and completed important maintenance and upgrade to the Treatment Plant. GeoPetro has brought both wells back on production at a combined initial rate of 8.7 million cubic feet of natural gas per day. Production started flowing to the sales line on November 12, 2011.
Third Quarter 2011 Financial Results
Net income attributable to GeoPetro's common shareholders for the third quarter of 2011 was $1,879,718, or $0.04 per diluted share. This compares to a net loss of $1,207,949, or $0.03 per diluted share, for the third quarter of 2010.
During the three months ended September 30, 2011, we had no gross natural gas revenues due to the temporary cessation of gas production. Ongoing field work at Madisonville for well workovers, plant maintenance and upgrade continued during the third quarter. This work was successfully completed and production was reestablished from the Madisonville Field on November 12, 2011 at an initial rate of 8.7 million cubic feet of natural gas per day. The net income reported for the third quarter, 2011 resulted from the gain recognized in connection with the sale of idle and non-income producing equipment at the Treatment Plant in Madisonville, Texas.
Statement from the Company's President and CEO
Addressing the positive developments in the Madisonville Field, GeoPetro's President and CEO, Stuart J. Doshi commented, "The recommencement of production and the sale of certain idle and non-income producing plant equipment in the Madisonville Project to Peregrine Midstream Partners are significant milestones for the Company. The sale of the equipment has strengthened our balance sheet and improved our liquidity. We are also pleased with the latest production results as they demonstrate that the Rodessa interval can deliver good production rates and that we are on the right track to enhancing production and sales volumes at the Madisonville Field."
"Additionally, the Company continues to be focused on securing an industry partner to perform additional workovers on the Mitchell and Wilson wells in the Madisonville Field to further increase production, and undertake the drilling of a deep well to test six (6) highly prospective zones in the Madisonville Field. Our 3D seismic shows a very attractive structural closure with a high potential for a major discovery."
The Madisonville Field has been a prolific producer of oil and natural gas. The Rodessa and shallower zones have to date produced in excess of 30 million barrels of oil and 100 billion cubic feet of natural gas. The six (6) zones below the Rodessa Formation have potential recoverable reserves of approximately one (1) trillion cubic feet of natural gas.
GeoPetro is an independent oil and natural gas company headquartered in San Francisco, California. GeoPetro currently has projects in the United States, Canada and Indonesia. GeoPetro has developed a producing oil and gas property in its Madisonville Field Project in Texas. Elsewhere, GeoPetro has assembled a geographically-diversified portfolio of exploratory and appraisal prospects.
This news release contains forward-looking information. Statements contained in this news release relating to future results, events and expectations are forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended and Section 21E of the Securities Exchange Act of 1934, as amended. These forward-looking statements may involve known and unknown risks involving market prices for natural gas and oil, economic and competitive conditions, regulatory changes, resource estimates, estimates of proved and probable reserves, production forecasts, geological and engineering uncertainties, potential failure to achieve production from development drilling projects, capital expenditures and other risks and uncertainties, which may cause the actual results to be materially different from those expressed or implied by such statements. Additional risk factors include, among others, those described in the Company's Annual Report on Form 10-K on file with the U.S. Securities and Exchange Commission. We do not have any intention or obligation to update forward-looking statements included in this press release after the date of this press release, except as required by law.
No stock exchange or regulatory authority has approved or disapproved of the information contained herein.
SOURCE GeoPetro Resources Company