Peregrine Midstream Takes Idle Equipment Off GeoPetro’s Hands

Acquired idle producing equipment at a Texas gas-treatment plant in Madison County.

Peregrine Midstream Partners LLC has closed the acquisition of producing equipment at a Texas gas-treatment plant from Madisonville Midstream LLC, a subsidiary GeoPetro Resources Co., San Francisco, (NYSE Amex: GPR) $9.25 million.

The plant is in Madisonville in Madison County. The assets were not disclosed.

The sale of idle equipment at the plant does not impact GeoPetro’s capacity to treat production of gas from the Rodessa formation in Madisonville Field.

Simultaneously with the closing of the Peregrine transaction, GeoPetro paid its $7.7-million secured loan from the Bank of Oklahoma.

GeoPetro president and chief executive Stuart J. Doshi says, “Closing the Peregrine transaction and retiring our bank debt are significant milestones for GeoPetro. We continue to prudently manage and enhance our liquidity and capital positions. With much improved liquidity and a stronger balance sheet, the company is now well-positioned to focus on enhancing our gas production in Madisonville Field…”