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eResearch

September 18, 2008 14:01 ET

eResearch Issues Update Report on GeoPetro Resources Inc.

TORONTO, ONTARIO--(Marketwire - Sept. 18, 2008) - GeoPetro Resources Inc. is an oil and gas exploration and production company with a 100% interest in a producing gas property in Madisonville, Texas and a number of oil and gas exploration prospects in Indonesia, Canada, Alaska, Texas and California.

At its recent price of $2.40, GeoPetro's shares trade at a 50% premium to our estimated "floor value" NAV per share of $1.59, which is based solely on the discounted value of the Company's proved and probable reserves at its Madisonville property. When the risked value of the Company's high-impact exploration prospects (discounted for funding uncertainty) is included, we derive a final Net Asset Value estimate of $3.27 per share.

The shares of GeoPetro Resources Inc. are rated as a Speculative Buy, and are upgraded from our previous "Hold" designation. This despite lowering our 12-month Target Price from $4.90 to $3.25 per share. Our positive Recommendation reflects our opinion that the shares are not taking into account the ramping up of production at Madisonville and the significant increase in cash flow generated therefrom.

Highlights from the report include:

- Restoration of shut-in gas processing capacity expected later this year.

- A pending $12 million drilling obligation will likely prompt an additional equity issue in 2008.

- Interests in two new gas exploration prospects (Alberta and Texas) acquired.

- Negotiated extinguishment of $2.5 million exploration commitment on Alaskan property thereby retaining rights, and drilling is planned for Q2/2009.

eResearch is a primary source for professional investment research, focused primarily on small- and mid-cap companies. Dundee Securities Corporation paid eResearch a fee of $17,500 + GST to conduct research on GeoPetro Resources Inc., on an Annual Continuous Coverage basis.

This Press Release was prepared by eResearch and was not vetted by either Dundee Securities Corporation or GeoPetro Resources Inc. Further, the Recommendation and Target Price contained in this Press Release and in the Update Report are strictly those of eResearch and, due to securities laws, are not endorsed by either Dundee Securities Corporation or GeoPetro Resources Inc.

For FREE access to all eResearch reports and articles, go to www.eresearch.ca.

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