GeoPetro Resources Company [NYSE Amex: GPR] said June 27 that it now owns 100% working interest in the Swan Hills Project, central Alberta, Canada through its wholly owned subsidiary GeoPetro Canada Ltd. The successful acquisition of the remaining two-thirds (2/3) working interest from PetroBakken Energy Ltd. and Mosaic Energy Ltd. is in exchange for an overriding royalty interest, thus not requiring any upfront cash payment from GeoPetro.
The Swan Hills Project covers 4,480 acres. The acreage is shot with high-quality 3D seismic that has identified a large reefal complex with a potential for 50 million barrels of recoverable oil reserves or a potential for 250 billion cubic feet of recoverable natural gas reserves with significant associated oil, according to GeoPetro.
The project is located in the prolific Swan Hills area of Alberta and is in the general vicinity of major oil discoveries to the north (Judy Creek Field and Carson Creek Field) and major natural gas discoveries with significant associated oil to the south and to the west (Rosevear Field and Kaybob South Field). A well is planned for the four quarter of 2012 or first half of 2013, subject to permitting and other regulatory approvals, and securing a farmout partner.
GeoPetro is an independent oil and natural gas company headquartered in San Francisco, Calif. The company currently has projects in the United States, Canada, and Indonesia. GeoPetro has developed an oil and gas property in its Madisonville Field Project in Texas. The company says it has assembled a geographically-diversified portfolio of exploratory and appraisal prospects.