GeoPetro Resources Company
TSX : GEP.S

GeoPetro Resources Company

May 15, 2006 18:32 ET

GeoPetro Resources Company Announces March 31, 2006 Quarterly Financial Results

SAN FRANCISCO, CALIFORNIA--(CCNMatthews - May 15, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES OR FOR DISSEMINATION IN THE UNITED STATES

GeoPetro Resources Company ("GeoPetro" or the "Company") (TSX:GEP.S) today reported unaudited financial results for the three months ended March 31, 2006. All currency amounts in this release are stated in U.S. dollars.

Revenue for the quarter ended March 31, 2006 was $1,498,453 compared to $1,588,204 in the comparable period in 2005, representing a 6% decrease. The Company reported net loss available to common shareholders for the quarter ended March 31, 2006 of $73,077 ($0.00 per basic and diluted share), compared to a net income available to common shareholders of $12,543 ($0.00 per basic and diluted share) in the previous year quarterly period.

The decrease in revenue was due primarily to lower production volumes from the Madisonville Field located in Madison County, Texas. Production volumes were lower in the first quarter 2006 due to production downtime associated with: (i) a significant workover on the Magness #1 well in January, (ii) hook-up and production start-up of the Fannin #1 well and (iii) maintenance work on the Madisonville gas treatment plant.

GeoPetro has filed its management's discussion and analysis and its unaudited financial statements for the quarter ended March 31, 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 quarter ended March 31, 2006. These documents may be accessed under GeoPetro's profile on the SEDAR website at www.sedar.com.

GeoPetro 2nd Quarter 2006 Production Outlook

As noted above, GeoPetro experienced production downtime in the first quarter of 2006 due to a workover, plant maintenance and the hook-up of a second producing well in the Madisonville Field. However, those activities have contributed to a significant increase in production volumes in the second quarter as the following table illustrates:



2006 Average Gross Production Per Day - Mcf
-------------------------------------------

JAN FEB MAR APR MAY (1)
--- --- --- --- ------
Gross wellhead production
per day 10,393 11,265 13,108 14,528 15,961
Increase over prior month 8% 16% 11% 10%
Cummulative increase
(January to May 2006) 54%

(1) Represents average for the first 11 days of May


The Company expects that the higher production volumes will translate into improved revenues and financial results in the second quarter over the first quarter of 2006. The Company further expects to post increases in the Madisonville Field production volumes from its recent drilling activity in the area once the planned expansion of the gas treatment plant is complete. Higher production volumes are also expected to result in lower production and treating costs per Mcf associated with the Madisonville Project.

GeoPetro Operations Update for Madisonville Project, Madison County, Texas

In early April, the Company commenced drilling operations on the Mitchell #1 well located approximately one mile south of the Company's Magness #1 well. The well has been drilled to a depth of approximately 10,600 feet where intermediate casing has been set. The well is planned to be drilled to a total depth of 12,300 feet. GeoPetro previously announced that it had completed drilling operations to a total depth of 12,300 feet on the Wilson #1 well in early April. The Company plans to complete and test both wells this summer in the Rodessa formation at approximately 12,000 feet.

No stock exchange or regulatory authority has approved or disapproved of the information contained herein. GeoPetro's common shares have not been registered under the United States Securities Act of 1933 (the "1933 Act") or the securities laws of any state and may not be offered or sold in the United States or to U.S. persons, except pursuant to registration under the 1933 Act or pursuant to an available exemption from such registration requirements. The ".S" suffix in the trading symbol indicates that the common shares are subject to trading restrictions imposed pursuant to Regulation S under the 1933 Act. In particular, the common shares may not, for a period of two years from the date of issuance, be offered or sold to persons in the United States or U.S. persons except in transactions exempt from registration under the 1933 Act. Hedging transactions involving the common shares must not be conducted unless in accordance with the 1933 Act.

Except for the historical and present factual information contained herein, the matters set forth in this news release, including words such as "expects", "projects", "plans" and similar expressions, are forward-looking information that represents management of GeoPetro's internal projections, expectations or beliefs concerning, among other things, future operating results and various components thereof or the economic performance of GeoPetro. The projections, estimates and beliefs contained in such forward-looking statements necessarily involve known and unknown risks and uncertainties, which may cause GeoPetro's actual performance and financial results in future periods to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, those described in GeoPetro's filings with the Canadian securities authorities. Accordingly, holders of GeoPetro securities and potential investors are cautioned that events or circumstances could cause results to differ materially from those predicted.

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