GeoPetro Resources Company Announces Successful Sale Of Cook Inlet Project In Alaska
GeoPetro has constructed a drill pad and access road at the Frontier Spirit #1 location. The well will be located less than two miles from the Enstar 20" natural gas pipeline which has abundant spare capacity. This proximity to a major pipeline provides rapid and relatively inexpensive access to the lucrative Anchorage gas market.
The Frontier Spirit #1 well is expected to be drilled by Linc in 2010.
Additional Prospects Targeted in the Cook Inlet Project
Preliminary log analysis and seismic data indicate the Point MacKenzie and Trading Bay Blocks may contain conventional accumulations of natural gas reserves in Tertiary sandstones in addition to the prospect identified at the Frontier Spirit #1 location. Structural anticlines and/or domes occur on the lease blocks and may contain large undrilled gas reservoirs. Sandstone units also pinch-out toward the margins of the basin and may have formed stratigraphic traps on the lease blocks. In the past, oil and gas exploration has focused on oil production and anticlinal gas traps, but stratigraphic accumulations have been largely unexplored in the Cook Inlet.One of the prospects identified as a high priority target on the Trading Bay Block is the Cottonwood Creek Prospect. This prospect is based on a well drilled by Shell in 1967 looking for Hemlock Formation oil. The well encountered significant gas shows in the shallower Tyonek sandstone formation at approximately 3,000 feet which were corroborated by an apparent gas column on the well logs. The well was drilled on a closed structure identified from Shell's 2-D seismic data (GeoPetro has acquired and reprocessed certain Shell seismic data). A gathering line of approximately five miles would be required to tie in the Cottonwood Creek Prospect location with the Chevron-Marathon 16" regional pipeline which runs through the Trading Bay Block. GeoPetro Management Comments Commenting on the successful Cook Inlet Project transaction, GeoPetro's Chairman, President and CEO Stuart J. Doshi said: "We are very pleased to have Linc as operator and working interest owner in the Alaska project. The sale will provide Linc a major foothold in the Cook Inlet. We look forward to a long and mutually rewarding relationship with Linc. Their significant commitment to the exploration and development of the Cook Inlet Project has confirmed our belief in the resource potential of this significant acreage position. This transaction is consistent with our business strategy of gaining control of key acreage in projects which individually have the potential to be 'company makers', performing extensive geologic and geophysical evaluations thereon, and leveraging through strategic transactions with other resource companies. It also allows us to further focus our human and capital resources on our remaining core area projects. Pursuing a diversified portfolio of high potential reserve targets has been a key Company strategy since inception. The significant resource potential of this Project coupled with our retained interest positions us for a significant enhancement of shareholder value upon a commercial discovery."
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