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GeoPetro Resources Co.

Mon, 1 Dec 2008|

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Transcript

And our next presenting company is GO -- Broad headquartered in San Francisco it's an independent oil and natural gas company. Presenting today wouldn't be mr. Stewart doce. -- -- -- Thank you for coming to a presentation -- we appreciate your interest in our company. You -- resources companies that are natural gas company headquartered in Francisco California. It is strategy -- our company to be engaged in now. Very larger -- you -- projects. And for that has a specific definition in our organization. Or company for a project to call -- as a company maker. It has to yield at discounted net present value net did you -- interest of at least fifty million dollars. And as a review by prop up the properties or -- be with you later you'll see that every one of our projects the only meets that criteria. Exceeds that threshold by multiple of that fear. It is also the strategy -- -- to exercise. This mitigation. And we do that through some strategic farmhouse that we have done in the past. Almost all our projects a three dimensional seismic. Which reduces risk obviously. All of them are nearby major commercial discoveries. All of them stock they zones and zone bailouts -- Word geographically. And geologic you divorce fight we have a few properties in the US major property and emotional year. In Texas immediately. -- -- -- property in Alaska Eagles who were not property and California. We have interest in two prolific rushing potluck Indonesia and weren't as central -- -- We believe we have a proven management team this -- senior officers of the company have combined oil and gas industry experience of 100 years. And it colors in prospect from of -- -- profile from -- stated expiration to. Exploitation to appraisal to development. Production to cash flow. And and it covers both the national as well as domestic callers onshore offshore -- -- cast. And also in my -- It covers a time when. I was instrumental in sunny populist with -- -- two billion US dollars. We're publicly traded American Stock Exchange under the symbol GPR. We're also -- -- the senior exchange Toronto Stock Exchange under the symbol GE. Our real -- capital structure. Toll shares outstanding 32 point eight million shares common shares. Fully diluted basis is -- 3.2 million shares. We don't have an admirable effort and then there's talk -- structured our company. And totally debt free. But what have you are the properties -- company may -- couple minutes of our time -- -- -- to management team I'm Stuart Dorsey on the chairman president CEO. I'm also the founder of -- resource company. -- in the petroleum business below 38 years joined -- business when I joined a small companies San Cisco on the Thomas company. Which was at that that was what you're shipping company but don't look pretty authority -- -- in San Francisco within the energy group -- -- Thomas. And we were successful in according got them to -- huge international gas company. And sixteen years after I joined the company we were successful in selling the company to damage camera corporation -- -- dollars a little over two billion US dollars. Would draw a lot of the toast to success force was Indonesia. We ended up finding an -- of three billion console -- the jealousy. -- eighteen weeks working for -- we were producing. -- for actual 400000 barrels per day. We think you know 89 I -- our capital budgets and still pulling out of Indonesia Greek -- -- -- -- -- -- every year. -- that -- -- very active in the UK sector Dorsey and jointly -- and develop a few of the Bakken field would British Petroleum. We had you almost seem operations we -- -- Kentucky's I was responsible. In six different divisions within energy. And I when the company got sold out to -- -- I left them I was senior VP of energy sources group a couple of years. The three major deals left them became exactly vice president of -- petroleum. And let them up at three years later to -- human resource company. As I cut my active in the business in Indonesia because these -- in the business to Libya. He's been in the business for 44 years he spent eleven years Libya. And it -- skeptical embassies petroleum which -- of Murdoch's company. Came back from India has spent 25 years in Denver in a number of different positions and join our company and sent to school but in years ago. Also on our teams -- Anheuser. It was a sealed for our -- the CPA by training. Prior to joining our company he was with -- beat on gas which -- it was renamed to petrohawk. Energy. And he's been with this little -- -- -- -- couples lecture in the interest of time. Without question that the principal property -- companies as practical. -- possible field. Itself located -- -- from here. In and it it conical Madison County. And we have a 100% working interest in this particular project. And at a depth of about 121000 feet in information on as -- or does the formation. -- just discovered a significant amount of natural gas. But the gas you've discovered -- 28% -- -- -- -- and nitrogen. It percent carbon dioxide CO2 and a percentage to us. And so the gas these to be process and treated in order to rendered marketable also it was in that connection that initially we brought in Hanover compression obviously -- large company. And they built a specialty. To handle lot of gases that facility was built -- dedicated totally to our gas Andy spent thirty million dollars building facility. In the design capacity of the plan was about eighteen million cubic feet and asked yesterday. And I was in -- in 2003. Producing 141516. Million today into the system. Would -- additional wells and -- discover additional volumes of gas. And we're not in a position to Italy were more like 35 million provision -- -- into the system before wells. Drilled and completed. But so it's very necessary that the plant capacity to expand it. So it was in that connection that we continued -- sale of the plant from hand over to another optical and GP Madison gas processing. Which incidentally is owned by an affiliate at JPMorgan Chase back. And they have spent and fidelity bought the plant and or or lower thirty funded 25 million dollars. And -- spend about 52 million dollars additional capital to expand plant from the design capacity of eighteen million today which was the original plan. -- the design capacity of 68 million -- -- yesterday. And and spent so I think there are some we expect that the expanded plant to be completed in the first quarter of next year. There's some major developments are taking place. That would enable Japan -- resources to be in much better control of the timetable went to plan would be completed. And I think these in new progress is being made we should be in a position to announce something on that in the short term. But we are confident that by the end of the first quarter we should have -- -- expanded. And we should be in a position begin delivering a triple the production that we aren't producing right now. -- This is this pictures for a thousand words this is of this not a very good picture but it's taken -- really. For about 343000 feet up in there. Who stole the original plan that was built by hand over it cost thirty -- Dawson sits on about the sixteen acres piece of land. This is -- expanded though facility that's being that is been being built live build and we expect to be completed by the end of the first quarter next year. It's great so there's about 7580 million -- when it. So in summary you know the natural gas we have has about -- -- and impurities. And GP which is jointly controlled -- CC and which which is an affiliate of JPMorgan Chase Bank. And and also bit of investment which in turn is owned majority owned by -- film -- you told middlemen who who sold his company put -- -- house. I believe in 2005 to Noble Energy for -- three point six billion dollars. They initially invest or 25 million dollars to buy the -- -- -- or. And it's -- an initial fifty feet below fifty million some close to 52 million dollars expand it. And expansion of the plan is nice and expected to complete within the first quarter. And there are some developments are taking place that would that it allowed -- to better control that the timetable of the one would be completed. This is days that top of the structural map -- whether NASA. This of the -- -- field -- you know we got 5800 acres -- the closure at -- -- Nestle level the -- before wealth through right now. The two there are producing right now is a Mac in this well that you see there. And the fan and well. And incidentally the Mac as those authority produced over eighteen billion cubic feet net net desperate that well alone. And -- -- that will be hooked up and in producing it are the Mitchell and Wilson -- once that most new plan to expand it. We have 270 feet of structurally for the Russell level. 66 feet below average net today which is what image -- -- opposite humanness. -- -- gases is -- is natural gas in places 174 billion cubic feet. But 78% of Mexico horrible so we got about one -- 35 billion cubic feet of natural gas dishonorable -- -- that were to ask permission. Recoverable are -- needs to be treated in this be processed and so we -- impurities. And so the sellable gas will be -- that but but it is a very reluctant source undesirable information. -- -- project we have. Discovered by three dimensional seismic minutes. Twelve -- -- treaty -- that was infrastructure. In addition to that today two that were best at 121000 feet we believe there are six zones below -- -- -- that I really prospective. They are it is Largo at 141000 feet -- -- speak. -- -- -- The -- here approximately nine and the smack or. And and it is tolerable to spot it well take a while all the way down to -- -- -- level beginning with the second quarter of next year. This has -- into one of literally one of the premiere deep natural gas -- in North America. As many of you probably know and cannot normal no more than twenty from arsenal's west where we are. Have discovered -- crucial field that's this and read it to be you know in excess of a trillion to -- -- got a horrible. And -- that -- Welsh I think the war wielding real came in at 48 million cubic -- net yesterday. The best we'll be drilled before our records show that it came in about 68 million a day per well. And and and they had -- -- a 50% interest there was a private optical Leo energy that had the other 50% interest. And about a year ago and cannot just put out New York's 50% interest in that project. For about 2.5 five billion dollars. And they're there that -- all the -- it discovered is out of the formation called the blows yet it was information which is one of the zones we have. Horrible as I -- is take a while deep bounces back over. It's Mac -- alone there's about 400 feet of a structural relief. In all of these six don't sees he's not frontiers onto a major producing zones in the area there -- -- number of major oil companies gas companies and -- in the area. And so -- worry -- -- highlanders to project this could be a very -- -- discovery. And we're putting together all the logistics and and Rick schedules so -- troops but this one's world but here. Our second core areas Alaska. And a lot in the cook inlet project. We have a very very large initial position of 122000. Acres is broken down to two blocks there is that when MacKenzie block. Which is about 70000 acres it's located -- -- north of the city of Anchorage. And and then the balance of the acreage is in -- -- trading -- block. Which is across this a body of water might -- -- she sees a body water quality -- -- And were -- right highland district abroad as well we have. Acquired recently seismic. From -- on the point MacKenzie block. And even more recently seismic from shell on the trading -- block. You reprocess -- all of that seismic in Denver and received numerous conventional prospects and leads. And we've identified one particular prospect that we're we're calling it the frontier spirit it covers about. Eighteen sections of them -- 1500 acres on the closure. And we are plans -- -- that well in that in May June time framework I think that's when the drinks he did it the weather. Season -- -- allowed -- to spot it well at that time. We do as I said is a very radar structure. It's less than two months from an existing pipeline and star. Which is local pipeline utility company has opposite twenty inch line that the -- gas from from the northern part -- -- when -- all the way through Anchorage. And it has about -- -- TVs today you excess capacity. Oh we're very -- on the -- project we we already located Arabia we've we've drilled we've built a little bat. We've we have identified all of the third party services and the logistics on the tube removed that we need to -- this particular well. Permitting is well underway. And we we -- expect this but this vote by the end of the second quarter of next year. It's a very large target. There's also existing pipeline system which -- will you know we will also -- -- -- set aside from shell on the -- they block -- reprocess that we -- a number of prospects and -- There's a part that's going to be active -- four of those -- ensuing years. But there's already pipeline -- that the marathon Unocal pipeline that these gas from the -- big law. Fifty miles. Across east to Anchorage act bridges and a tremendous need a natural gas -- -- -- very large for plaza my uncle owned by Agrium. Which needs it was -- gas attack -- church it's that it shut down because -- gas. -- LNG facilities owned by ConocoPhillips they're looking for gas but also growing market for gas from industrial usage of commercial uses and residential usage. And the price of natural gas -- just moved up dramatically and cook inlet area. And star which is the local utility company just -- made announcement just a little while ago that. That that they are but they're prepared to accept all gas -- that can be delivered to them. At a price that's gonna be 22% higher than that the price of prevailing in 20082. 22% to the put any price for this year. It gets about eight dollars and 35 cents and MC. And all forecasts show that goes for those numbers Google will -- our. In in the four years so we have a great -- -- peaceful position you know hundreds of working interest in 122000 acres. And we were pretty good program that we would be undertaking beginning beginning and second quarter -- lot of work authority happen. -- court warriors Indonesia I've spent a lot of them I've been through Indonesia or sixty times and business we think this is a prolific area. -- major major quantities of commercial gas as you'll know Indonesia as an archipelago about 181000 island's main lines. -- -- John just. Bodies to at least job to north of job there's just very very large on uncle -- And Borneo is broken down to Malaysian Borneo which is in northern tip of Borneo with the possible -- essentially most of -- news release territory. And that is -- -- -- -- -- And -- Donald -- on -- we have two blocks. To production contracts one it's called and got outlaw an arm to block. That consist of 240000. Acres it's mostly -- sure what -- offshore. It's -- experimentation. It look at the geology -- remind you south Louisiana maybe fifty years ago. Though a lot. Lot of structural traps and strike up traps and -- Johnson. Royal horse of the awful lot of significant before development all of this over the east plays are -- conducive to immediately -- We that would -- and and you know what has enhanced in this particular area recently is -- any. Which is -- very -- 55 billion dollars it is Todd company. Has four blocks to east of where we are in the same base in the geological -- -- -- known as the tar and based on. And Andy has yet to major discoveries. In in in their block. That block -- law in the blocked -- chemical aster field. I think that -- four walls between them estimated five or 5000 miles per day tested. And is being developed and commercialized in seconds that we had more recent -- -- field. Its rightful I was in Indonesia recently confined I would much about it but I'm told that -- needed them to -- so. That has brilliant -- salary position. What we did is we is consistent with a strategy we have in our company which is that for. Domestic projects we tend to put our own Kaplan and development and commercialize it that they could production after an earnings. International projects that we tend to use our -- companies in hopes fears and our. Relationship the -- Google or time some -- you bar. -- quantum bit to acquire major -- positions. On and has gone four bases that you can and do somewhat. GNG maybe 22 million dollars for the GNG to take up to Harlem maturity. Whereby you might actually identified delete to -- -- regional. At that time we have Tenet to -- -- the project to him to major company which -- deep pockets and than than what we have. And so in that connection. We did bring an optical CNBC China national -- coming. Which is a three to four billion dollar integrated oil and gas company. Trade -- the Hong Kong stock exchange. 52% of the stock of CNBC. Is owned by CPC's China which is the national can't -- -- company. The People's Republic of China has got deep pockets and the deal we did is that we sold 70% of our interest to indictment Donald -- to them. For a sixty minute off financing and six in the endorsements he's broken down to an eighteen point seven million dollar pot strictly for -- And then if we have any commercials discoveries of commercial success with that then the remaining 41 -- -- it all -- would -- again. To develop the discovery so we've got -- you know as CNBC has brought in free -- one -- -- in net and on and on down. To drill four wells and we it appears that we have a discovery and a few of December -- field. Though we test all. It needs more time in terms of trying to tie up -- of the geology we we need -- some some 3-D seismic. So we asked the government for an extension expiration -- extension for about three years. And we're hopeful that we should be getting that shortly. But more recently. Just last week we announced that -- quality point 5% working interest in on the block in Indonesia. Just immediately to decide that's been -- problem and what new blocked -- -- -- -- block. -- it's a huge block it's a brand new block. Did the minister of mines and energy in Indonesia. In Jakarta assigned 22 blocks to solve them to major oil companies like Chevron. And we we were one of those parties -- was successful in in in a bidding situation. It's -- it's at one point three million acres we think this seriously perspective. You know just of the -- of that is is where the you know we have the most popular it would delta area which is -- Unocal. Have been producing 8200000 barrels of production per day for a long long time and that's when the reasons -- Chevron spent. 181920 billion dollars maybe 23 years ago to my unit console. -- -- really were -- a prolific area and we have some good lance to not to excuse for -- in Indonesia. Well to other areas we have in California we have a target called the local in the field it's a -- five million dollar target in the Stephenson formation. At about 151000 feet. This particular field is. There's five miles north of the L two losers which is dole naval petroleum reserves Occidental Petroleum I think that made some like three point six billion dollars. For fourteen years ago to to buy this one not billion dollars feel from from the garment. This is that a prolific basin San Joaquin basin -- over the cumulative production taxes of ten billion barrels and and -- and next of ten trillion cubic natural gas. This is a nice target we have we have so much going on next year that our plan is to. These along to nieces who got tied up for a long period of time so we will not be doing anything this particular project to you 2010. But I'm sure that you just election season we a lot of the products in the pipeline another project we have is authority three and one -- percent interest. -- and and seven net sections that we did on there's a crown -- in -- for -- we were the winning bid. We have two Canadian partners it's it's almost like new project it's a hundred billion dollar that -- a billion cubic feet and natural gas target people play. And we plan to build in that purports to be one in test about 111000 feet planted -- -- in the fourth quarter of 2009. So -- our work program we have a very very aggressive program next year. As I said earlier. That the that the benchmark property are companies it is that national field both the best in the deep. And we will -- -- and deep well in April of next year that's going to be five months to drool. -- and complete and we believe we we you know with six -- test you know all of them offered did not none of -- frontier zones -- -- major producing zones in the area. 3-D side -- it covers it some major discoveries made by by and count on some of the company's. -- Miller ruled that shot it at finding some huge quantities natural gas. On any kind of success -- plans to troop build another -- well is next year with a -- or next year. There's one well the Wilson well that needs to be tracked and and that's and -- -- vessel formation and we'll do that in the first quarter of next year. As I said in Canada we plan to split the Babylonian people play in the -- -- border region in the third quarter of next year. And there Alaska cook in the brought to the frontier spirit which is a -- -- five miles north of Anchorage. We expect that -- splitting in the second quarter of next year and in addition that was Specter Indonesia. Will be evaluating -- discovery -- deceive you get additional time extension for the government to do. Put together -- plan well and on the discovery. And a valued at new new production contract authority of production -- we just signed last week. In terms of our financial summary we are -- actual positive company we have. -- -- -- -- -- -- -- -- We expect up profitability in year 2008. We're totally debt free. And once they have the -- is -- it -- -- in a position to lead triple our production. And we expect our revenues 22 triple. No one expects the plan which we expect them for next year. This is they did just that a simple a matrix the national you know you -- -- that in -- Petrino appears. Our revenues have really been in the 68 billion dollar range and -- and we have not exceeded that that range. Only because we've been waiting on a plan to be expanded its -- that -- have been number delays have taken place. But upon expression -- plan we expect significant improvement in revenues and and and an operating results. I think -- numbers -- self -- In terms of a -- and outlook are our prize or or are equity. We have experienced a -- increase liquidity and our stock we've been averaging about fifty to sixty son shares traded every day. That is a significant improvement to what we had last year I think we're doing a lot more -- and 151000 shares. So we our goal and there's two -- to maintain that acquitted -- -- and asked if we can. You know for small company trading fifty to 60000 -- -- -- it's pretty good. We -- eighteen to 20% -- company's owned by institutions. And our goal is to increase that to about a third and in the next twelve to eighteen months. And -- that connection will be doing some some -- this year and in the future in the near future. -- -- -- -- -- owns about twenty props and our country right now. We we currently have two analyst that pull our stock company. One in Canada and 111 in the US and within the next twelve months -- -- -- analyst coverage by by by a factor of 200%. If you possible -- two -- -- 24. And we are -- also is to increase. Investor visibility. And we gonna do that by undertaking and focused. -- relations program. Which we have not done in the past but we will be doing undertaking that here shortly and minorities to -- a couple companies and we expect engaging them. And that would that would allow us to to present -- or program completely and -- masters and two to repeal pictures. And terms of key takeaways. Our company. We are a production stage company or or actual positive -- profitable. We believe we have very robust powerful Leo projects exploration appraisal projects. I think expansion the -- -- we expect in the -- first half of next year. It was very very major impact and programs and earnings and cash flow and -- wooden boat that -- We think we're attractively valued based on -- and an engineering report. The -- on -- net present value our proven and probable reserves if you're in 20082007. Was 109 point five million dollars to -- the divide that by -- 33 points some shares million shares outstanding. That comes to about three dollars and 35 cents a share. You know if you value going to be -- proven pro reserves. So we believe were in we have no debt about it so we believe -- -- attracting that valued based on the books independent -- -- as well as investment by sort party and on a gastric planted services -- production. We have high impact projects -- in Madison will field with a deep -- that will be drilling. Testing the six zones that I spoke often I think I think the -- fuels -- on the zones it's like oh. The trust they beat up and police and the boat here like lines Mac -- -- -- -- in the area. We think we have additional quimica opportunities in the coconut base and in Alaska. In California. In Alberta and two production prolific rushing congress in Indonesia. And we have opportunities for additional opportunities in Indonesia negate our goal there is to acquire properties do some nominal Knology NG. An appropriate time from -- regional basis and get them about the big dollars. Experienced management team and and we do have a goal to resolve liquidity -- there. Increased institutional ship an analyst coverage and -- it focuses -- -- published. Thank you very much for your interest and that's -- --

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