GeoPetro Resources Company Announces Year End 2007 Financial Results, Operational...

GeoPetro Resources Company Announces Year End 2007 Financial Results, Operational Update and Expiration of Transfer Restrictions Affecting Its Common Stock Trading on the Toronto Stock Exchange

SAN FRANCISCO--(Business Wire)--
GeoPetro Resources Company ("GeoPetro" or the "Company")
(AMEX:GPR) (TSX:GEP) today reported audited financial results for the
year ended December 31, 2007. All currency amounts in this release are
stated in U.S. dollars.

Revenue for the year ended December 31, 2007 was $6,890,777
compared to $6,716,360 in 2006, representing a 3% increase over the
prior year. The Company reported a net loss available to common
shareholders for the year ended 2007 of $1,616,804 ($0.05 per basic
and diluted share), compared to a net loss available to common
shareholders of $1,011,806 ($0.04 per basic and diluted share) in the
previous year. The loss in 2007 was due primarily to a $1.1 million
impairment expense related to exploration costs associated with the
Company's Canadian oil and gas properties, which resulted in ceiling
test write downs.

GeoPetro has filed its 2007 Annual Report on Form 10-K with the
U.S. Securities and Exchange Commission (the "SEC"). GeoPetro's Form
10-K may be accessed on the SEC's website at www.sec.gov and is also
available on the SEDAR website at www.sedar.com. The Company has also
filed its management's discussion and analysis and its audited annual
financial statements for the years ended December 31, 2007, 2006 and
2005 with the Canadian securities regulatory authorities. Reference is
made to the text of these documents for a complete description of
GeoPetro's financial position and results as at and for the year ended
December 31, 2007. These documents may be accessed under GeoPetro's
profile on the SEDAR website at www.sedar.com.

GeoPetro Operations Update

The Company also announced that it has acquired a 15% non-operated
working interest in approximately 2,000 gross acres of leases in
Lavaca County, South Texas. A test well, the Willstar Eichhorn No. 1
well (the "Willstar well"), is presently drilling at a depth of 15,677
feet and is expected to be drilled to a total depth of 17,000 feet.
The primary objective of this well is to test the Rochelle sands in
the Lower Wilcox formation. Secondary objectives include the "10,500",
Peck, Dagg, Lampley and Massive sandstone formations in the Wilcox
formation. The Willstar well is a vertical well located approximately
800 feet south of the Eichhorn Gas Unit No. 1 well drilled by Newfield
Exploration Company (the "Newfield well") in 2002. The Newfield well
was completed in 2002 in the Lampley member of the Wilcox formation at
an initial rate of 3.8 Mmcfgpd (million cubic feet of gas per day) and
has produced approximately 0.9 Bcfg (billion cubic feet of gas). The
Newfield well also encountered natural gas shows in the Rochelle,
"10,500", Peck, Dagg, and Massive members of the Wilcox formation
which were not tested.

The prospect is known as the South Dry Hollow Project and is
located in the Lower Wilcox Trend approximately fifteen miles north of
the city of Victoria, Lavaca County, Texas. The prospect is located
one mile south of the producing Dry Hollow Field. According to
information furnished by the operator, the Peck, Dagg and Lampley
Sands are found in the Dry Hollow Field at 11,000 feet to 12,500 feet
and have produced in excess of 50 Bcfg and 400,000 barrels of
condensate. The Rochelle and Massive Sands are found at 14,000 feet to
16,000 feet in the Dry Hollow Field and have cumulative production of
over 110 Bcfg. The Dry Hollow Field has cumulative production to date
in excess of 170 Bcfg. Individual wells have experienced sustained
flow rates of up to 40 Mmcfgpd and cumulative production in excess of
15 Bcfg per well. The Hope Field, located two miles north of the Dry
Hollow Field, has produced over 70 Bcfg from the Wilcox formation.

Removal of Trading Restrictions

As GeoPetro has disclosed previously, shares of its common stock
that were sold to investors in Canada and elsewhere outside the United
States in GeoPetro's March 30, 2006 initial public offering were
subject to certain restrictions on resale to U.S. persons pursuant to
Regulation S under the U.S. Securities Act of 1933. The resale
restrictions expired on the second anniversary of the initial public
offering, being March 30, 2008. Accordingly, holders of these shares
(other than affiliates of GeoPetro) will no longer be restricted from
selling the shares to U.S. persons.

GeoPetro has advised the TSX of the expiration of the transfer
restrictions and is making arrangements to provide that the shares
that trade on the TSX on and after March 30, 2008 will be represented
by a DTC-eligible share certificate with a new CUSIP number. The
changes affecting these shares will not have any effect on the
GeoPetro's other common stock, including shares of common stock that
currently trade on the American Stock Exchange. Quotation and trading
of GeoPetro shares on the TSX will continue to be in U.S. dollars.

About GeoPetro

GeoPetro is an independent oil and natural gas company
headquartered in San Francisco, California. GeoPetro currently has
projects in the United States, Canada and Indonesia. GeoPetro has
developed a producing property in its Madisonville Project in Texas.
Elsewhere, GeoPetro has assembled a geographically diversified
portfolio of exploratory and appraisal prospects.

Cautionary Statements

This news release contains forward-looking information. Statements
contained in this news release relating to future results, events and
expectations are forward-looking statements within the meaning of
Section 27A of the Securities Act of 1933, as amended and Section 21E
of the Securities Exchange Act of 1934, as amended. These
forward-looking statements involve known and unknown risks,
uncertainties, scheduling, re-scheduling and other factors which may
cause the actual results, performance, schedules or achievements of
the Company, or industry results, to be materially different from any
future results, performance or achievements expressed or implied by
such statements. Such factors include, among others, those described
in the Company's Annual Report on Form 10-K on file with the U.S.
Securities and Exchange Commission.

No stock exchange or regulatory authority has approved or
disapproved of the information contained herein.

GeoPetro Resources Company
Stuart J. Doshi, 415-398-8186 (President & CEO)
sdoshi@geopetro.com

Copyright Business Wire 2008