GeoPetro Resources Company (NYSE MKT: GPR) said October 16 that Kunlun Energy Ltd., acting in its capacity as operator of the Bengara-II Production Sharing Contract (PSC), has terminated negotiations with the Indonesian government for an extension of the PSC’s term. Consequently the PSC will be relinquished and allowed to expire in accordance with its terms.
A GeoPetro spokesperson said the company is disappointed that Kunlun could not work out agreeable terms for an extension with the Indonesian government. However, the company official added that Kunlun’s decision in this regard does provide GeoPetro with an opportunity to potentially reacquire a participation in the same block under new PSC terms and with a renewed time period when the block comes out for public tender in 2013. GeoPetro says it will evaluate its options in this regard.
GeoPetro is an independent oil and natural gas company headquartered in San Francisco. GeoPetro currently has projects in the United States and Canada. 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.