On Thursday of last week, Eric Doshi, Vice President of Corporate Development for GeoPetro Resources (NYSE-Amex: GPR), traveled to Portland, Oregon. Mr. Doshi’s travels were the result of a due diligence luncheon which he was hosting at The Heathman Hotel for a select group of investment professionals. Mr. Doshi met with representatives from leading investment firms such as UBS, Morgan Stanley, and Wedbush Securities, to whom he provided a general corporate update, detailed presentations on the Company’s properties, and an overview of the Company’s current opportunities, followed by a question and answer session. When the answer to the final question was finished, Mr. Doshi realized his audience had been there for slightly more than two hours, almost an hour more than he had originally anticipated, and not one person left early.
When we asked him about it, Mr. Doshi commented, “The presentation could not have gone any better and my audience could not have been more in tune with what we were doing. It was like going to a really good movie and when it’s over, you can’t believe nearly three hours have gone by. That’s how good it was.”
Below is recap of GeoPetro’s value drivers as outlined in last week’s investor presentation. In short, GeoPetro’s message was that it has and will continue to move forward on several fronts, and while some of these efforts may not be readily visible nor reflected in the Company’s share price, once they are completed – the market perception could change very quickly.
Proven Producer – GeoPetro’s Madisonville, Texas natural gas field is currently producing at the rate of 7 million cubic feet per day. GeoPetro is looking to put two additional completed wells online in the near to mid-term, bringing production up to an estimated 25 to 30 million cubic feet per day. Six additional structures are productive below & GeoPetro is looking for the right JV partner to test these lower structures in the near to mid term.
Ongoing Exploration – GeoPetro’s California property in Kern County borders Occidental Petroleum (NYSE:OXY) land, where OXY recently announced a 150 – 250 million barrel oil equivalent discovery. GeoPetro is activley looking to bring on a strategic partner to drill a test well targeting a 50 to 75 million barrel field on this prospect.
Recent Alaska Transaction – GeoPetro recently announced the sale of their 123,000 acre land position in the Cook Inlet area of Alaska to Linc Energy – retaining a lucrative 10% net over-riding (gross) royalty. First test well planned for mid 2010 targeting 1 TCF of gas.
Experienced Management – GeoPetro’s team has a long and successful track record in creating growing energy enterprises. GeoPetro’s CEO, Mr. Stuart Doshi, was formerly with Natomas, responsible for financial management of over $1 billion in annual energy revenue.