GeoPetro Resources Company
TSX : GEP.S

GeoPetro Resources Company

November 10, 2006 09:09 ET

GeoPetro Resources Company Announces September 30, 2006 Quarterly Financial Results

SAN FRANCISCO, CALIFORNIA--(CCNMatthews - Nov. 10, 2006) -

NOT FOR DISTRIBUTION TO U.S. NEWSWIRE SERVICES

GeoPetro Resources Company ("GeoPetro" or the "Company")(TSX:GEP.S) today reported unaudited financial results for the three and nine months ended September 30, 2006. All currency amounts in this release are stated in U.S. dollars.

Revenue for the quarter ended September 30, 2006 was $1,705,140 compared to $2,824,093 in the comparable period in 2005, representing a 40% decrease. The Company reported net loss available to common shareholders for the quarter ended September 30, 2006 of $489,224 (Loss of $0.02 per basic and diluted share), compared to a net income available to common shareholders of $1,189,929 (Earnings of $0.06 per basic share and $0.05 per diluted share) in the previous year quarterly period.

Revenue for the nine months ended September 30, 2006 was $5,172,657 compared to $6,034,047 in the comparable period in 2005, representing a 14% decrease. The Company reported net loss available to common shareholders for the nine months ended September 30, 2006 of $811,841 (Loss of $0.03 per basic and diluted share), compared to a net income available to common shareholders of $1,379,507 (Earnings of $0.07 per basic share and $0.06 per diluted share) in the previous year nine month period.

The loss incurred during the 2006 nine months period and in the third quarter was primarily due to lower gas prices, higher lease operating expenses as well as increased general and administrative costs. The increase in lease operating expenses was related to the Fannin #1 well which was placed on production in March 2006. General and administrative costs increased over the prior year periods due primarily to costs associated with the Company's listing on the Toronto Stock Exchange, stock based compensation, higher insurance premiums and the filing of a registration statement with the Securities and Exchange Commission.

GeoPetro has filed its management's discussion and analysis and its unaudited financial statements for the quarter ended September 30, 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 three and nine months ended September 30, 2006. These documents may be accessed under GeoPetro's profile on the SEDAR website at www.sedar.com.

A registration statement relating to the Company's securities has been filed with the Securities and Exchange Commission but has not yet become effective. These securities may not be sold to persons in the United States or to U.S. persons, nor may offers to buy be accepted by persons in the United States or U.S. persons prior to the time the registration statement becomes effective. This news release shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of these securities in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

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.

Contact Information

  • GeoPetro Resources Company
    Stuart J. Doshi
    President & Chief Executive Officer
    (415) 398-8186
    Email: sdoshi@geopetro.com