This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

GeoPetro Resources Company's Subsidiary Announces A Pending Sale Of Idle Equipment And Related Assets For $8.75 Million

SAN FRANCISCO, April 7, 2011 /PRNewswire/ -- GeoPetro Resources Company (NYSE Amex: GPR) ("GeoPetro", "we", "our" or the "Company") is pleased to announce that its wholly-owned, indirect subsidiary, Madisonville Midstream LLC ("MML"), entered into a Purchase and Sale Agreement (the "Agreement") on April 1, 2011 with Peregrine Midstream Partners LLC ("Peregrine") whereby MML has agreed to sell certain idle equipment ("assets") at its Madisonville Treatment Plant located in Madisonville, Madison County, Texas for $8,750,000.

Peregrine's plan in acquiring the assets is to integrate them into an underground storage project that a Peregrine subsidiary is developing in Wyoming.

The basic terms of the Purchase and Sale Agreement are as follows:

  1. GeoPetro's wholly owned indirect subsidiary, Madisonville Midstream LLC, will sell certain idle equipment at the Madisonville Plant to Peregrine for $8,750,000 (the "Purchase Price").
  2. Peregrine will pay the Purchase Price to the Company in the installments as follows:
    1. The first installment of $150,000 was tendered upon execution of the PSA.  This first installment is non-refundable except for a material breach of the Agreement by the Company.
    2. The second installment of $8,600,000 (the "Closing Payment") is to be tendered on or before May 31, 2011.
    3. If regulatory approval to develop an underground gas storage project has not been received by Peregrine by May 31, 2011, Peregrine has an exclusive option to extend the due date of the Closing Payment up to 45 days to July 15, 2011.
    4. If Peregrine exercises this option to extend the due date, then Peregrine shall pay an option payment of $150,000.  This payment is non-refundable except in the case of a material breach of the Agreement by MML.
    5. If the Closing has not occurred on or prior to June 15, 2011, Peregrine shall make a payment of $2,315.07 per day to MML for each day after June 15, 2011, until the Closing or the termination of the PSA.

The sale of idle equipment at the Plant does not impact current treatment capacity to treat production of natural gas from the Rodessa Formation in the Madisonville Field.

1 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,880.36 -31.75 -0.19%
S&P 500 1,970.07 +0.12 0.01%
NASDAQ 4,462.9020 +20.2040 0.45%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs