SAN FRANCISCO, November 13 /CNW/ - GeoPetro Resources Company ("GeoPetro"
or the "Company") (AMEX: GPR) (TSX:GEP.S) today announced unaudited financial
results for the three and nine months ended September 30, 2007. All currency
amounts in this release are stated in U.S. dollars.
Revenue for the third quarter of 2007 decreased 28% to $1,231,370 from
$1,705,140 for the third quarter of 2006. The decrease was primarily due to
lower production volumes caused by available natural gas treatment plant
capacity constraints. The Company reported a net loss available to common
shareholders for the quarter ended September 30, 2007 of $745,691, or $0.02
per basic and diluted share, compared to a net loss available to common
shareholders of $489,224, or $0.02 per basic and diluted share in the same
period last year.
For the nine months ended September 30, 2007, revenues were $5,443,562
compared to $5,172,657 reported for the 2006 period, a 5% increase primarily
due to higher natural gas prices. The Company reported a net loss available to
common shareholders for the nine months ended September 30, 2007 of $689,527,
or $0.02 per basic and diluted share, compared to a net loss available to
common shareholders of $811,841, or $0.03 per basic and diluted share in the
previous year nine month period.
Revenue and Operating Outlook
As discussed in the "Properties -- Texas -- Madisonville Project" section
in our Annual Report on Form 10-K for the year ended December 31, 2006, in
order to produce the gas reserves from the Rodessa Formation, we developed an
onsite plan to treat and remove impurities from the Madisonville Project
natural gas in order to meet pipeline-quality specifications. In 2003, the
construction and installation of a natural gas treatment plant with a designed
capacity of 18 million cubic feet of gas per day ("MMcf/d") and associated
pipeline and gathering facilities were completed. The treatment plant and
associated pipeline and gathering facilities are owned by Madisonville Gas
Processing LP ("MGP").
In 2005 we secured a commitment from MGP to install and make operational
additional treating facilities capable of treating 50 MMcf/d, which combined
with the capacity of the current in-service treating facilities will represent
a total designed treating capacity of 68 MMcf/d for the Madisonville treatment
plant. MGP has completed construction of the additional treating facilities
and the additional treating capacity at such facilities is currently being
Upon completion of the phase-in, we expect to produce our wells at higher
rates as the well rates have previously been restricted due to capacity
limitations in the gas treatment plant. In addition, early in 2008 we expect
to fracture stimulate the Wilson Well, and provided such stimulation is
successful, we will place the Wilson Well on production.
Our contract with MGP provides that for volumes of natural gas delivered
in excess of 18 MMcfd, MGP will receive a reduced treating fee per thousand
cubic feet (Mcf). We record our revenues net of these treating fees. Thus, if
we are able to increase natural gas deliveries to the gas treatment plant in
excess of 18 MMcfd on a sustained basis, we expect to experience a
disproportionately higher increase in revenue due to lower average treating
fees per Mcf.
While there can be no assurance, the higher production rates from our
wells combined with the lower average treating fees per Mcf, may result in
higher net production and increased revenue during later periods in 2007 and
2008 as compared to the third quarter of 2007 and prior periods.
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 property at
its Madisonville Project in Texas and is conducting a drilling program in East
Kalimantan, Indonesia. 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 involve
known and unknown risks, uncertainties, scheduling, re-scheduling and other
factors which may cause the actual results, performance, schedules or
achievements of the Company, or industry results, to be materially different
from any future results, performance or achievements expressed or implied by
such statements. Such factors include, among others, those described in the
Company's Annual Report on Form 10K on file with the U.S. Securities and
No stock exchange or regulatory authority has approved or disapproved of
the information contained herein. GeoPetro's common shares which trade on the
Toronto Stock Exchange contain the ".S" suffix in the trading symbol
indicating that the common shares are subject to trading restrictions imposed
pursuant to Regulation S under the 1933 Act. In particular, the common shares
which trade on the Toronto Stock Exchange may not, for a period of two years
from the date of issuance, be offered or sold to persons in the United States
or U.S. persons except in transactions exempt from registration under the 1933
Act. Hedging transactions involving the common shares must not be conducted
unless in accordance with the 1933 Act.
For further information:
For further information: GeoPetro Resources Company Stuart J. Doshi,
415-398-8186 (President & CEO) firstname.lastname@example.org