GeoPetro to Assess Bengara II Commerciality in 2009

GeoPetro Resources Company has received approval of the Indonesian government for an extension of time under the Bengara-II PSC to appraise, assess and justify the economic feasibility of commercial development of an apparent oil discovery made on the Seberaba prospects during exploratory drilling late last year in the Bengara-II Block, onshore Kalimantan, Indonesia.

Together with the approval, GeoPetro's 12% owned subsidiary Continental-GeoPetro (Bengara-II) Ltd. (CGB2) has been asked to submit a work program and budget detailing 2009 appraisal and evaluation plans.

The approval is granted for an additional year to the Bengara-II PSC contract anniversary on Dec. 4, 2009, and may be extended for subsequent years subject to further approval based on an annual review of progress and results of appraisal work.

At any time that CGB2 determines that the appraisal work justifies development, it may submit a plan of commercial development for the first oil or gas field in the block. Upon approval of such POD by government authorities, the Bengara-II Block will be held for its full 30-year term through Dec. 4, 2027.

The majority 70% shareholder and manager of CGB2, CNPC (Hong Kong) Ltd., has called a shareholders meeting for mid January 2009 to discuss appraisal plans which are expected to include a 3D seismic program.

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.