GeoPetro Resources Company provided a further update regarding the operational start-up of the expanded gas treatment facilities at its Madisonville Project located in East Texas.
In December 2007, Madisonville Gas Processing LP ("MGP") informed the Company that operations were suspended in the new plant in order to make modifications to more effectively deal with the presence of diamondoids in the gas stream produced from the Rodessa Formation.
MGP has completed a pilot project in the field utilizing a prototype diesel contactor at the plant site. Results of the gas samples taken confirm that utilizing diesel as the diamondoid absorbing agent solves the diamondoid issue by removing the diamondoids from the inlet gas stream to allow for continuous operations in the new plant. MGP is awaiting results from similar tests performed using crude oil as the diamondoid absorbing agent. This data is expected shortly. Once these results are obtained, MGP will finalize cost estimates and proceed with constructing a contactor at the plant site utilizing either diesel or crude oil to absorb the diamondoids. MGP expects that operations at the additional treating facilities can commence during the third quarter of 2008.
In the meantime, the original plant continues to treat approximately 15 million cubic feet per day of inlet gas.