April 18, 2011
/PRNewswire/ -- GeoPetro Resources Company (NYSE Amex: GPR) ("GeoPetro", "we", "our" or the "Company") provided an update today on the 2011 plans for the Bengara-II Block,
, owned by its 12% subsidiary, Continental-GeoPetro (Bengara II) Ltd. ("CGB2").
The acquisition of 178 square kilometers of new 3D seismic data in the Bengara-II Block is now over 60% complete. Surface damage claim disputes with prawn farm operators in the area of the company's new seismic acquisition program have been largely resolved. Preparatory work is in progress for the planned acquisition of 920 line kilometers of 2D seismic data. Recording of the 2D program will follow completion of recording of the 3D program and will likely coincide with the first 2011 drilling.
The first well of 2011 is now set to be the Muara Makapan-2 well ("MM-2"). CGB2 expects a late third quarter spud of MM-2 which is budgeted at
. An additional well of similar cost is included in CGB2's preliminary budget for 2011 but will not be confirmed until after the MM-2 well is completed.
The MM-2 is designed as an appraisal well to the 1988 Muara Makapan-1 ("MM-1") gas and condensate discovery which tested gas at a rate of 19.5 million cubic feet per day and condensate at a rate of 600 barrels per day. The precise location of the MM-2 will be determined upon review of the 3D seismic data, but it is expected to be in the general vicinity of the MM-1 discovery well which was drilled offshore, but in water only approximately six (6) feet deep, in the estuary of the Bulungan River. The drilling operations for the MM-2 will be conducted either from a barge or from an artificial island.