GeoPetro Resources Company Spuds Seberaba #1 Well In Indonesia

San Francisco, CA - GeoPetro Resources Company recently announced that its 12% owned Indonesian subsidiary, Continental-GeoPetro (Bengara-II) Ltd. ("CGB2"), has spudded the first well of its four well exploration drilling campaign planned for this year in the Bengara-II Block, onshore East Kalimantan, Indonesia.

Drilling of the 13,200 feet deep Seberaba #1 is expected to take 75 to 90 days at a cost of over $6,000,000. The Seberaba #1 will test a large faulted structure ideally located to receive a hydrocarbon charge and trap hydrocarbons. It will test the oil production potential of four separate stratigraphic zones at depths between 4,900 to 13,100 feet.

The Company's Chairman, President and CEO, Stuart J. Doshi, stated, "The GeoPetro team and its joint venture partners have worked long and hard to get these exciting prospects to the drilling stage. Having been personally involved with Natomas Company for sixteen years, a company that enjoyed substantial success in the oil and gas business in Indonesia, I'm glad that the drilling operations have commenced and look forward to evaluating the commercial potential of the Bengara-II Block. I would like to complement and thank our partners, management, staff, shareholders and supporters for their patience."

"Since we acquired the Bengara-II PSC in 2000, we have had to overcome certain challenges in addition to the routine technical and operational ones we originally expected. Arranging the necessary financial commitments to drill these wells required a concerted effort over the past several years. Throughout this process, the principal driver has been our confidence in the geological merits of the Bengara-II Block. For GeoPetro, a commercial discovery on any one of this year's four exploration wells could represent a significant addition to shareholder value."

SOURCE: GeoPetro Resources Company