SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 8-K
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Current Report Pursuant to Section 13 or 15(d) of
The Securities Act of 1934
Date of Report (Date of earliest event reported)
April 21, 1997
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Geo Petroleum, Inc.
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(Exact name of registrant as specified in its charter)
California 0-20915 33-0328958
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(State or other (Commission (I.R.S. Employer
jurisdiction File Number) Identification No.)
of incorporation)
25660 Crenshaw Blvd., Suite 201 Torrance, CA 90505
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code
310-539-8191
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(Former name or former address, if changed since last report.)
Geo Petroleum, Inc.
Item 5 Other Events
Geo Petroleum, Inc. (the "Company") increased its proven
reserves of oil to 33 million barrels by year-end 1996,
representing a 2.6 million barrel (8.5%) increase during the
year, according to an independent engineering evaluation. Proven
gas reserves increased 5% by 300 MMcf to 5,800,000 Mcf during the
same period.
During 1996, calculated future net revenues increased 70% to
$341 million, representing a gain of $140 million. The present
value of the proven reserves, discounted at 10% per annum is $165
million, an 86% increase ($76 million) over the value calculated
at year-end 1995.
Geo's President, Gerald T. Raydon, stated that the increases
were due in large part to higher prices the Company is now
receiving for its oil and gas production. Oil prices were $23.74
per barrel at year-end 1996, compared to $17.29 at year-end 1995.
Gas prices during the same period increased from $1.84 to $4.50
per Mcf. Well recompletions in the East Los Angeles and Bandini
Fields also contributed to the increases.
Proven reserves at year end 1996 amounted to 34 million
barrels of oil and equivalents (BOE), or 4.4 BOE per share of
common stock outstanding (7,603,324) at that date. The present
value of these reserves amounted to about $21.65 per share at
year-end 1996.
The Company is using the proceeds of $3.9 million in equity
capital raised in December 1996, to carry out its program of
recompleting, reworking, and repairing wells in order to increase
production. This program will continue throughout 1997.
The proceeds are also being used to expand the Company's oil
field waste disposal business, utilizing a very high capacity
injection well. The Company has recently obtained regulatory
approval to dispose of "tank bottoms," which are a type of sludge
produced in oil operations. Due to a shortage of comparable
disposal wells in California, the Company has been able to obtain
a significant number of utility, major oil company, and
independent oil company customers. The Company expects that the
business will continue to expand and contribute substantially to
profits.
Safe Harbor for Forward-Looking Statements: Except for
historical information contained herein, the statements in this
news release are forward-looking statements that are made
pursuant to the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995.
Forward-looking statements involve known and unknown risks
and uncertainties which may cause the Company's actual results in
the future periods to differ materially from forecasted results.
Theses risks and uncertainties include, among things, volatility
of oil prices, product demand, market competition, risk inherent
in the Company's international operations, imprecision of reserve
estimates and the Company's ability to replace and expand oil and
gas reserves. These and other risks are described in the
Company's Annual Report on Form 10KSB and other filings with the
Securities and Exchange Commission.
Pursuant to the requirements of the Securities Exchange Act
of 1934, the registrant has duly caused this report to be signed
on its behalf by the undersigned hereunto duly authorized.
Geo Petroleum, Inc.
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Registrant
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GERALD T. RAYDON
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GERALD T. RAYDON
(PRESIDENT)