GeoPetro Resources Company Provides Activity Update on the Alaska Cook Inlet Project

SAN FRANCISCO--(BUSINESS WIRE)--GeoPetro Resources Company ("GeoPetro" or the "Company") (AMEX: GPR) (TSX: GEP.TO) today provided an activity update regarding its Alaska Cook Inlet Project.

GeoPetro presently owns a 100% working interest in approximately 122,000 acres onshore in Cook Inlet, Alaska. This leasehold position consists of two separate target areas that have been selected for exploration named the Point MacKenzie and Trading Bay Blocks, respectively. The Company believes this acreage to be prospective for both conventional gas and coal bed methane gas production.

The Company plans to spud its first well, Frontier Spirit #1, in the second quarter of 2009. Due to the operational realities of working in Alaska during the deep cold of winter months, May 2009 is the earliest optimal drilling window during which GeoPetro can efficiently drill, complete and test the Frontier Spirit well while maintaining a tight control on project costs. Prior to this time frame, highly variable road and weather conditions can result in significant drilling cost overruns due to freezing rig components and technical difficulties associated with winter drilling operations. GeoPetro anticipates that seasonal road restrictions and highway load limits associated with springtime ground thaw conditions in Alaska will be lifted by late April or early May and the drill rig can then be moved onto location for the commencement of drilling in May 2009.

Significant operational progress has been made within the past year and continues at a good pace today in preparation for drilling the Frontier Spirit well. After reprocessing 2-D seismic data which the Company acquired from both AMOCO and Shell, GeoPetro has identified a sizeable initial reserve target. The prospect covers eighteen sections (11,500 acres) under closure and will target conventional gas reserves in the Middle and Lower Tyonek Formations reaching to a depth of approximately 8,000 feet. The Hemlock Formation, a known oil and gas producer in the Cook Inlet, will be the secondary objective for the Frontier Spirit well. The reservoir rocks within the Tyonek Formation are expected to be fluvial sandstones and alluvial fans, with the abundant, deeper lying, coal beds serving as the primary source for the non-associated gas. Reprocessing of the seismic data identified a direct hydrocarbon indicator which increases the probability of success for this prospect. The GeoPetro Frontier Spirit well will be located less than two miles from the Enstar 20” natural gas pipeline which has abundant spare capacity.

In preparation for drilling the Frontier Spirit well, GeoPetro has identified a drilling rig, surveyed the proposed well location, completed the initial site permitting phase of the project, and secured all bonds required for drilling within the State of Alaska. Construction of the Frontier Spirit well pad and access road is expected to be completed this fall, prior to ground freeze-up. Well permitting, procurement and logistics processes are well underway and proposals from drilling and service vendors are currently being evaluated.

GeoPetro is also pleased to announce that the $2.5 million work commitment which was due in 2008 has been waived in its entirety and that the final payment for the leases has been tendered.

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 may involve known and unknown risks involving market prices for natural gas and oil, economic and competitive conditions, regulatory changes, estimates of proved and probable reserves, geological and engineering uncertainties, potential failure to achieve production from development drilling projects, capital expenditures and other risks and uncertainties, which may cause the actual results to be materially different from those expressed or implied by such statements. Additional risk 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. We do not have any intention or obligation to update forward-looking statements included in this press release after the date of this press release, except as required by law.

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

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