GeoPetro Resources Company

GeoPetro Resources Company

March 30, 2006 08:55 ET

GeoPetro Resources Company Closes Initial Public Offering

SAN FRANCISCO, CALIFORNIA--(CCNMatthews - March 30, 2006) -

Not for Distribution to U.S. Newswire Services or for Dissemination in the United States.

GeoPetro Resources Company (TSX:GEP.S)("GeoPetro" or the "Corporation") is pleased to announce closing of the initial public offering of common shares (the "Offering") under which GeoPetro issued 3,730,021 Common Shares at US $3.50 per Common Share and 519,500 common shares issued on a "flow-through basis" within the meaning of the Income Tax Act (Canada) (the "Flow-Through Shares") at US $3.85 for gross proceeds of US $15,055,148.50. The Offering was led by Dundee Securities Corporation and included Westwind Partners Inc. The Common Shares began trading today on the Toronto Stock Exchange under the symbol "GEP.S".

No stock exchange or regulatory authority has approved or disapproved of the information contained herein. These securities 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 securities are subject to trading restrictions imposed pursuant to Regulation S under the 1933 Act. In particular, the securities 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 securities must not be conducted unless in accordance with the 1933 Act.

The net proceeds of the Offering will be used to fund development drilling of proven and probable natural gas reserves associated with the Corporation's natural gas exploration, development and production project at the Madisonville (Rodessa) field in Madison County, Texas and to conduct exploration and appraisal activities on GeoPetro's other projects in the United States, Canada and Indonesia, provided that not less than $2,000,075 will be expended on amounts that qualify as Canadian Exploration Expense and which may be renounced to subscribers of Flow-Through Shares effective on or before December 31, 2006.

GeoPetro is an independent oil and natural gas company headquartered in San Francisco, California. GeoPetro currently has projects in the United States, Canada, Indonesia and Australia. The projects encompass approximately 1.6 million gross (643,115 net) acres consisting of mineral leases, production sharing contracts and exploration permits that give GeoPetro the right to explore for, develop and produce crude oil and natural gas. 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.


Certain statements in this press release may constitute "forward-looking" statements which involve known and unknown risks, uncertainties and other factors which may cause the actual results, performance or achievements of GeoPetro to be materially different from any future results, performance or achievements expressed or implied by such forward-looking statements. When used in this press release, such statements use such words as "may", "would", "could", "will", "intend", "expect", "believe", "plan", "anticipate", "estimate" and other similar terminology. These statements reflect GeoPetro's current expectations regarding future events and operating performance and speak only as of the date of this press release. Forward-looking statements involve significant risks and uncertainties, should not be read as guarantees of future performance or results, and will not necessarily be accurate indications of whether or not such results will be achieved. A number of factors could cause actual results to differ materially from the results discussed in the forward-looking statements, including, but not limited to, the factors discussed below. Although the forward-looking statements contained in this press release are based upon what management of GeoPetro believes are reasonable assumptions, GeoPetro cannot provide assurance that actual results will be consistent with these forward-looking statements. These forward-looking statements are made as of the date of this press release, and, subject to applicable securities laws, GeoPetro assumes no obligation to update or revise them to reflect new events or circumstances.

In particular, this press release contains forward looking statements pertaining to the size and development of the Corporation's projects and prospects in the United States, Canada, Indonesia and Australia. The Corporation's actual results could differ materially from those anticipated in these forward looking statements as a result of the risk factors set forth below:

- general economic conditions in the United States, Canada, Indonesia and Australia;

- volatility in market prices for oil and natural gas;

- competition;

- liabilities and risks, including environmental liabilities and risks, inherent in oil and natural gas operations;

- sourcing, pricing and availability of materials, equipment, suppliers, facilities, and skilled management, technical and field personnel;

- ability to integrate technological advances and match advances of competition;

- availability of capital;

- uncertainties in weather and temperature affecting exploration and production and the activities that can be completed; and

- changes in legislation and the regulatory environment.

Contact Information

  • GeoPetro Resources Company
    Stuart Doshi
    President & CEO
    (415) 398-8186