SAN FRANCISCO, Nov. 2, 2015 (GLOBE NEWSWIRE) -- GeoPetro Resources Company (OTC:GEOR) ("GeoPetro" or the "Company") is pleased to announce that the Company has entered into certain transactions in order to achieve its principal objectives as established by the Company's Board of Directors.
Those principal objectives are as follows:
- Recommence production at Madisonville Field, Madison County, Texas.
- Reposition the Company's portfolio by the acquisition of low risk oil and gas producing properties with significant growth potential from proven reserves and upside potential from infill drilling opportunities on undeveloped acreage.
- Add management depth.
The Company has entered into the following transactions in order to accomplish its goals:
(1) Madisonville Project, Madison County, Texas.
GeoPetro Resources Company's wholly owned subsidiaries, Redwood Energy Production LP and Madisonville Midstream LLC, have executed a letter of intent with a confidential Houston based oil and gas company which plans to re-open the gas processing facility and return the Madisonville Project to production. The agreement is subject to completion of due diligence and full documentation for the transaction.
The proposed transaction will include cash payments to GeoPetro and significant trailing interest from future production. Plans include the contracting of experienced mid-stream plant operators who will staff and manage the day-to-day operations. Commercial negotiations are at an advanced stage and the Company expects to sign a definitive agreement in the near future. The Company will provide further updates and details upon closing of the transaction.
(2) Three Buck Bayou Project, Louisiana.
GeoPetro has entered into an agreement to acquire from Columbus Holdings Company, L.L.C., a 15% participating interest in certain producing operations and related leases in the Three Buck Bayou Field, Franklin and Tensas Parishes, Louisiana. Blue Heron Oil L.L.C., an independent producer in Northern Louisiana, operates the Three Buck Bayou field which contains:
a. Current gross production of approximately 25 barrels of oil per day, with additional workovers and proved undeveloped drilling prospects ready.
b. Approximately 28,000 contiguous gross acres of mostly undeveloped oil and gas properties in Northern Louisiana.
c. Significant upside development potential from large acreage position including 3D seismic survey.
d. Experienced local operator based in the project area.
The Company will provide further updates and details in due course.
(3) Add Management Depth.
The Company will appoint two new Directors to the Board of GeoPetro nominated by the Houston based oil and gas company planning to re-open the Madisonville project in Texas. The nominated Directors, who have agreed to join the Board upon execution of the definitive agreement for the Madisonville Project, will each bring decades of domestic and international experience to the Company. They will also provide access to their management team for GeoPetro to use on a contract basis as needed. The new Directors and access to experienced personnel will effectively support GeoPetro's growth plans and add additional depth without the overhead and salary burden of a full time staff.
The newly expanded Board of Directors will begin a funding campaign to raise necessary capital for corporate growth and for general corporate and working capital needs. The Company is currently evaluating several new development projects to bring into GeoPetro as part of its investment and growth plans. The Company intends to raise sufficient capital to acquire additional producing properties with significant further development upside.
(5) Corporate Matters.
GeoPetro also announced today that it will hold a Special Meeting of its Shareholders as soon as practicable to vote on a proposed amendment to the Amended Articles of Incorporation of the Company that would result in there being additional authorized common shares available for issuance in order to allow the Company the financial flexibility to pursue growth opportunities and other strategic initiatives. The Company will provide further details shortly.
(6) Comments from the Company's CEO.
Addressing the various positive developments for the Company, GeoPetro's Chairman, President and CEO, Stuart J. Doshi commented, "The recent transactions concluded and future deals contemplated represent transformative events for GeoPetro. These actions are decisive steps necessary in order to implement the Company's growth strategy. They are a product of a concerted and a dedicated effort on our part to rejuvenate the Company and create a new wave of enthusiasm for GeoPetro and its shareholders. They also address the challenging environment created by the current volatility in commodity prices. The Company has a renewed focus on low risk growth strategies which are essential in achieving the major objectives established by the Board."
GeoPetro is an independent oil and natural gas company headquartered in San Francisco, California. GeoPetro currently has projects in the United States and Australia. GeoPetro has developed an oil and gas property in its Madisonville Field Project in Texas. Elsewhere, GeoPetro has a geographically-diversified portfolio of exploratory and appraisal prospects.
Cautionary Note Regarding Forward-Looking Statements
Certain items in this press release and other information GeoPetro provides from time to time may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not necessarily limited to, statements relating to future events and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," "target," "projects," "contemplates" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based upon GeoPetro's historical performance and on GeoPetro's current plans, estimates, and expectations in light of information currently available to GeoPetro. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to GeoPetro's operations, financial results, financial condition, business, prospects, growth strategy, and liquidity. For a discussion of such risks and uncertainties, see "Risk Factors" included in GeoPetro's Annual Report on Form 10-K. Furthermore, GeoPetro is under no obligation to update or alter any of the forward-looking statements contained in this press release as a result of new information, future events or otherwise, unless required by law.
No stock exchange or regulatory authority has approved or disapproved of the information contained herein.
CONTACT: For further information please contact: GeoPetro Resources Company Stuart J. Doshi, President & CEO Telephone: (415) 398-8186 E-Mail: firstname.lastname@example.org Website: www.geopetro.comSource:GeoPetro Resources Company