SAN FRANCISCO, April 18, 2011 /PRNewswire/ -- GeoPetro Resources Company (NYSE Amex: GPR) ("GeoPetro", "we", "our" or the "Company") provided an update today on the 2011 plans for the Bengara-II Block, Indonesia, owned by its 12% subsidiary, Continental-GeoPetro (Bengara II) Ltd. ("CGB2").
The acquisition of 178 square kilometers of new 3D seismic data in the Bengara-II Block is now over 60% complete. Surface damage claim disputes with prawn farm operators in the area of the company's new seismic acquisition program have been largely resolved. Preparatory work is in progress for the planned acquisition of 920 line kilometers of 2D seismic data. Recording of the 2D program will follow completion of recording of the 3D program and will likely coincide with the first 2011 drilling.
The first well of 2011 is now set to be the Muara Makapan-2 well ("MM-2"). CGB2 expects a late third quarter spud of MM-2 which is budgeted at US$22.5 million. An additional well of similar cost is included in CGB2's preliminary budget for 2011 but will not be confirmed until after the MM-2 well is completed.
The MM-2 is designed as an appraisal well to the 1988 Muara Makapan-1 ("MM-1") gas and condensate discovery which tested gas at a rate of 19.5 million cubic feet per day and condensate at a rate of 600 barrels per day. The precise location of the MM-2 will be determined upon review of the 3D seismic data, but it is expected to be in the general vicinity of the MM-1 discovery well which was drilled offshore, but in water only approximately six (6) feet deep, in the estuary of the Bulungan River. The drilling operations for the MM-2 will be conducted either from a barge or from an artificial island.
CGB2 believes MM-2 offers a low-risk, fast track, path to a Plan-of-Development ("POD") for the Bengara II Block. Reliable and substantive test results and reservoir information were derived from the MM-1 discovery well. The results of the MM-1 well, the newly acquired 3D seismic data, and a successful confirmation test of gas and condensate at the planned MM-2 well, should provide sufficient confidence in reserves determination to justify a POD approval from the Indonesian government.
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.
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SOURCE GeoPetro Resources Company