By OGJ editors
HOUSTON, Jan. 7 -- GeoPetro Resources Co., San Francisco, acquired a gas treatment plant, gathering lines, and related facilities at Madisonville, Tex., from Madisonville Gas Processing LP, effective Dec. 31, 2008.
GeoPetro's subsidiary, Madisonville Midstream LLC, will own the plant. Consideration is assumption of debt, payment of MGP payables, and GeoPetro stock.
The plant consists of 15 MMcfd of original facilities made operational by Hanover Compression LP and in service since May 2003 and 50 MMcfd of expanded facilities installed by MGP in 2007 and not yet in operation due to modifications to deal with the presence of diamondoids in gas produced from the Lower Cretaceous Rodessa formation at 12,000 ft.
The facilities consist of amine treaters, nitrogen rejection units, compressors, and related equipment.
GeoPetro previously said it plans to start up the expanded facilities in the first quarter of 2009, activating two shut-in Rodessa wells to hike production to 30-35 MMcfd.
It also plans to drill a Jurassic Smackover deeper pool exploration well in the field in mid-2009. The well is to evaluate Sligo at 14,000 ft, Travis Peak at 14,500 ft, Cotton Valley sand at 15,000 ft, Bossier at 16,000 ft, Cotton Valley lime at 17,000 ft, and Smackover at 18,000 ft.
The company's 3D seismic indicates 400 ft of estimated structural relief at the Smackover level, and all six of the zones below Rodessa are productive nearby. Madisonville is just east of the Hilltop area, where EnCana Corp. and others have substantial gas-condensate production from the Bossier formation (see map, OGJ, Apr. 16, 2007, p. 38).
