SAN FRANCISCO, Nov. 14, 2011 /PRNewswire/ -- GeoPetro Resources Company (NYSE Amex: GPR) ("GeoPetro", "we", "our" or the "Company") is pleased to announce that it successfully completed its well workovers and plant maintenance and upgrade in Madisonville, Texas, recommenced its Madisonville Field production and reported its financial results for the third quarter ended September 30, 2011.
Madisonville, Texas – Recommencement of Production
In response to a temporary cessation of gas production, the Company performed successful workovers on the Ruby Magness #1 and Angela Fannin #1 wells and completed important maintenance and upgrade to the Treatment Plant. GeoPetro has brought both wells back on production at a combined initial rate of 8.7 million cubic feet of natural gas per day. Production started flowing to the sales line on November 12, 2011.
Third Quarter 2011 Financial ResultsNet income attributable to GeoPetro's common shareholders for the third quarter of 2011 was $1,879,718, or $0.04 per diluted share. This compares to a net loss of $1,207,949, or $0.03 per diluted share, for the third quarter of 2010. During the three months ended September 30, 2011, we had no gross natural gas revenues due to the temporary cessation of gas production. Ongoing field work at Madisonville for well workovers, plant maintenance and upgrade continued during the third quarter. This work was successfully completed and production was reestablished from the Madisonville Field on November 12, 2011 at an initial rate of 8.7 million cubic feet of natural gas per day. The net income reported for the third quarter, 2011 resulted from the gain recognized in connection with the sale of idle and non-income producing equipment at the Treatment Plant in Madisonville, Texas. Statement from the Company's President and CEO Addressing the positive developments in the Madisonville Field, GeoPetro's President and CEO, Stuart J. Doshi commented, "The recommencement of production and the sale of certain idle and non-income producing plant equipment in the Madisonville Project to Peregrine Midstream Partners are significant milestones for the Company. The sale of the equipment has strengthened our balance sheet and improved our liquidity. We are also pleased with the latest production results as they demonstrate that the Rodessa interval can deliver good production rates and that we are on the right track to enhancing production and sales volumes at the Madisonville Field." "Additionally, the Company continues to be focused on securing an industry partner to perform additional workovers on the Mitchell and Wilson wells in the Madisonville Field to further increase production, and undertake the drilling of a deep well to test six (6) highly prospective zones in the Madisonville Field. Our 3D seismic shows a very attractive structural closure with a high potential for a major discovery."