GeoPetro Resources Co. (OTC: GEOR) said Nov. 2 it will acquire low risk oil and gas producing properties in northern Louisiana with the goal to reposition its portfolio.

The San Francisco company has entered into an agreement with Columbus Holdings Co. LLC to purchase a 15% participating interest in certain producing operations and related leases in the Three Buck Bayou Field. The amount of the transaction wasn't disclosed.

The acquisition includes 28,000 contiguous gross acres of mostly undeveloped oil and gas properties in Franklin and Tensas parishes, La. Current gross production is about 25 barrels of oil per day, with additional workovers and proved undeveloped drilling prospects ready.

The assets have a significant upside development potential from large acreage position including 3-D seismic survey, the release said. Blue Heron Oil LLC, an independent producer in northern Louisiana, operates the Three Buck Bayou Field.

In addition, GeoPetro said it plans to recommence production at its Madisonville Field in Madison County, Texas.

The company's wholly owned subsidiaries, Redwood Energy Production LP and Madisonville Midstream LLC, have executed a letter of intent with a confidential Houston-based oil and gas company which plans to re-open the gas processing facility and return the Madisonville Project to production.

The agreement is subject to completion of due diligence and full documentation for the transaction.

The proposed transaction will include cash payments to GeoPetro and significant trailing interest from future production, the release said.

Plans include the contracting of experienced midstream plant operators who will staff and manage the day-to-day operations. Commercial negotiations are at an advanced stage and the company expects to sign a definitive agreement in the near future, the release said.

GeoPetro will begin a funding campaign to raise necessary capital for corporate growth and for general corporate working captial needs.

The company said its currently evaluating several new development projects to bring into GeoPetro as part of its investment and growth plans. The company intends to raise sufficient capital to acquire additional producing properties with significant further development upside, the release said.