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 which was 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 (5) miles would be required to tie in the Cottonwood Creek Prospect location into the Chevron-Marathon 16" regional pipeline which runs through the Trading Bay Block.
GeoPetro Management Comments
Commenting on the successful Cook Inlet Project transaction and the imminent commencement of drilling operations, GeoPetro's Chairman, President and CEO Stuart J. Doshi said:
"GeoPetro has spent five years acquiring and evaluating the Alaska Cook Inlet acreage and the seismic data. During that time, we have developed attractive drilling prospects with sizeable potential reserves on this acreage. The spudding of the first well in the Cook Inlet Region is a significant milestone for the Company. Given the potential for approximately one trillion cubic feet of natural gas, this is an exciting time for us and may represent a transformational event for the Company".About GeoPetro GeoPetro is an Alaska limited liability company and a wholly-owned subsidiary of GeoPetro Resources Company. GeoPetro Resources Company is an independent oil and natural gas company headquartered in San Francisco, California. GeoPetro Resources Company currently has projects in the United States, Canada and Indonesia. Through another wholly-owned subsidiary, GeoPetro Resources Company has developed a producing oil and gas property in its Madisonville Field Project in Texas. Elsewhere, GeoPetro Resources Company has assembled a geographically-diversified portfolio of exploratory and appraisal prospects. Cautionary Statements 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 GeoPetro Resources 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.