GeoPetro closes initial public offering

San Francisco-based independent oil and gas company GeoPetro Resources Company announced Thursday the closing of its initial public offering for about 4,249,521 common shares issued for gross proceeds of approximately US$15 million.

GeoPetro said the net proceeds of the offering would be used to fund development drilling of proven and probable natural gas reserves in the Madisonville (Rodessa) field in Madison County, Texas and to conduct exploration and appraisal activities on its other projects in the United States, Canada and Indonesia.

The company said the common shares began trading on Thursday on the Toronto Stock Exchange of Canada under the symbol "GEP.S".

GeoPetro and Dallas-based junior exploration firm Continental Energy Corporation have formed a 50/50 basis venture, CG Xploration Inc, to jointly develop the Bengara II PSC in East Kalimantan and evaluating several new exploration concessions for acquisition opportunities.

The partnership is preparing plan of development (POD) to develop the Makapan gas field which is located within the PSC. (Robert)