GeoPetro said that the plant is located in Madison County, Texas. The new owner of the plant will be GeoPetro’s wholly owned, indirect subsidiary, Madisonville Midstream.
According to the company, it assumed approximately $7.7 million of Madisonville Gas Processing’s (MGP) bank debt via a $1 million cash payment applied directly towards pay-down of debt principal, and a refinancing by GeoPetro of the $6.7 million remaining balance in the form of a three-year loan with the lender, Bank of Oklahoma, National Association.
Stuart Doshi, president and CEO of GeoPetro, said: “The acquisition of the Madisonville natural gas treatment plant represents a good step for our company. We hope to realize cost and operating efficiencies by consolidating the upstream and midstream portions of Madisonville under common ownership.”
GeoPetro is an independent oil and natural gas company headquartered in San Francisco, California. It currently has projects in the United States, Canada and Indonesia. The company has developed a producing property in its Madisonville Project in Texas.
