GeoPetro Resources starts operations in Texas' Madisonville field
SAN FRANCISCO -- GeoPetro Resources reported that reworking and testing operations commenced in March 2014 in the Madisonville field, Madison County, Texas.
The Company initiated reworking and testing operations on the Ruby Magness #1 and the Angela Farris Fannin #1 wells in anticipation of restoring production in the Madisonville field. These two wells are expected to recommence production by mid-year 2014.
The Company owns a 100% working interest in certain leases in the Rodessa Formation interval within the Madisonville Field.The Company also owns a 100% interest in a natural gas treatment plant and related gas gathering pipelines and related facilities (collectively, the plant).The plant has a design capacity to treat 18 Mcf of natural gas per day.
The Company is currently conducting additional operations and work programs to restore its production from the Ruby Magness #1 and Angela Farris Fannin #1 wells. The Company also plans to further increase production in the Madisonville Field by performing workover operations in the Mitchell #1 and Wilson #1 wells in 2014.
Addressing the positive developments at the Madisonville Project, GeoPetro' s President and CEO, Stuart J. Doshi commented, "We are particularly pleased with the commencement of operations at Madisonville Field which represents a significant milestone for the Company.The recent strengthening of natural gas prices from the 10-year lows experienced over the previous two years provides us with an opportunity to position the Company to re-establish production and generate revenues and positive cash flow for the Company by not only bringing the Magness #1 and Fannin #1 wells online, but also further enhancing production by performing workovers at the Mitchell #1 and the Wilson #1 wells.Additionally, the Company continues to be focused on securing an industry partner to undertake the drilling of a deep well to test six highly prospective zones in the Madisonville Field.Our 3-D seismic shows a very attractive structural closure with a high potential for a major discovery."
The Madisonville Field has been a prolific producer of oil and natural gas.The Rodessa and shallower zones have to date produced in excess of 30 MMbbl of oil and 100 Bcf of natural gas.The six zones below the Rodessa Formation have potential recoverable reserves of approximately 1 Tcf of natural gas.