GeoPetro Resources Company has announced unaudited financial results for the three months ended March 31, 2008. All currency amounts in this release are stated in U.S. dollars.
Revenue for the quarter ended March 31, 2008 was $2,142,598 compared to $1,823,342 in the comparable period in 2007, representing an 18% increase. The increase in revenue was due primarily to higher average natural gas prices prevailing in the 2008 period as compared to 2007. The Company reported net income available to common shareholders for the quarter ended March 31, 2008 of $344,126 ($0.01 per basic and diluted share), compared to a net loss available to common shareholders of $182,614 ($0.01 per basic and diluted share) in the previous year quarterly period.
Total costs and expenses decreased by 6% in the quarter ended March 31, 2008, as compared to the prior year period.
Operations Update at Madisonville Field, Texas
In October 2007, Madisonville Gas Processing, LP ("MGP") informed the Company that they had partially completed construction of the additional treating facilities. Subsequently in November 2007, MGP commenced phase-in of the additional treating capacity reaching a temporary peak inlet volume of 21 million cubic feet per day ("mmcf/d") of natural gas out of the total contracted 50 mmcf/d design capacity at such additional facilities. However, operations at the additional treating facilities were suspended by MGP in December 2007 in order to make the necessary modifications to effectively deal with the presence of diamondoids in the gas stream produced from the Rodessa Formation. MGP has further informed the Company that it expects operations at the additional treating facilities to commence in the third quarter of 2008. MGP has completed field testing of its planned diamondoid removal process and must now modify its equipment design to remove diamondoids from the production stream.
The Company's Chairman, President and CEO, Stuart J. Doshi stated, "We are pleased with our financial and operating results. As our numbers suggest, we are benefiting from higher commodity prices despite the delays associated with the expansion of the Madisonville Gas Treatment Plant." Mr. Doshi continued, "We look forward to continued progress and believe we are on track to achieve our corporate goals for 2008."