SAN FRANCISCO, Nov. 5, 2013 (GLOBE NEWSWIRE) -- GeoPetro Resources Company (OTCQB:GEOR) ("GeoPetro" or the "Company") is pleased to announce that CalEnergy Resources (Australia) Ltd. and Whicher Range Energy Pty Ltd. have commenced workover operations in the Whicher Range Gas Field, Whicher Range Permit, Exploration Permit 408 located approximately 280 kilometers south of Perth, Western Australia. GeoPetro has retained an economic interest in the EP 408 Permit. This permit contains the Whicher Range gas field which was discovered in 1968.
The Whicher Range structure is a large gas field. Seismic data and the drilling of five exploration/appraisal wells have defined the field with a gross hydrocarbon column height of 650 meters and a potential gas resource in place in excess of 4 trillion cubic feet.
CalEnergy Resources (Australia) Ltd. is presently undertaking a phased appraisal and development work program. The proposed appraisal program addresses the following key uncertainties for the Whicher Range Field:
- Ability to enhance productivity using managed pressure drilling technology
- Further reservoir characterization and understanding
The joint venture has commenced operations by contracting a rig and is re-entering the Whicher Range-4 well. Plans are to sidetrack the well using managed pressure drilling technology.
The Whicher Range field was discovered in 1968 by Union Oil, and since then the field has had five wells drilled on the structure, each confirming significant columns of gas (approximately 650 meters). The most recent well, Whicher Range-5, was drilled in 2000. The reservoir has presented technical challenges to the previous operators and the current joint venture is seeking to determine if managed pressure drilling provides an enhancement to well productivity.
The initial Whicher Range 1 well flowed gas at 1.9 million cubic feet per day and the aggregate of all zones tested was 5.5 million cubic feet per day with low rates of water. Since this first discovery well, four further wells have been drilled, each confirming the presence of significant volumes of gas. Unfortunately, further attempts to stimulate the reservoir to increase productivity have encountered difficulties on each occasion.
GeoPetro Resources Company sold its interest in EP 408 and EP 381 to Whicher Range Energy Pty Limited for cash consideration and a Petroleum Sales Royalty Payment equal to 25% of the future annual earnings before interest, taxes, depreciation and amortization from the property interests up to a total amount of $2,200,000. Whicher Range Energy Pty Limited subsequently farmed out a portion of its interest acquired from us to CalEnergy Resources (Australia) Ltd. who is presently the operator of the EP 408 permit.
About GeoPetro
GeoPetro is an independent oil and natural gas company headquartered in San Francisco, California. GeoPetro currently has projects in North America and Australia. GeoPetro has developed an oil and gas property in its Madisonville Field Project in Texas. Elsewhere, GeoPetro has assembled a geographically-diversified portfolio of exploratory and appraisal prospects.
Cautionary Note Regarding Forward-Looking Statements
Certain items in this press release and other information GeoPetro provides from time to time may constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995 including, but not necessarily limited to, statements relating to future events and financial performance. You can identify these forward-looking statements by the use of forward-looking words such as "outlook," "believes," "expects," "potential," "continues," "may," "will," "should," "could," "seeks," "approximately," "predicts," "intends," "plans," "estimates," "anticipates," "target," "projects," "contemplates" or the negative version of those words or other comparable words. Any forward-looking statements contained in this press release are based upon GeoPetro's historical performance and on GeoPetro's current plans, estimates, and expectations in light of information currently available to GeoPetro. Such forward-looking statements are subject to various risks and uncertainties and assumptions relating to GeoPetro's operations, financial results, financial condition, business, prospects, growth strategy, and liquidity. For a discussion of such risks and uncertainties, see "Risk Factors" included in GeoPetro's Annual Report on Form 10-K. Furthermore, GeoPetro is under no obligation to update or alter any of the forward-looking statements contained in this press release as a result of new information, future events or otherwise, unless required by law.
No stock exchange or regulatory authority has approved or disapproved of the information contained herein.
GeoPetro Resources Company Stuart J. Doshi, President & CEO Telephone: (415) 398-8186 E-Mail: Website: www.geopetro.com
