GeoPetro Resources Company's Subsidiary Announces an Increase in Purchase Price on Sale of Idle Equipment

GeoPetro Resources Company

announces that on May 31, 2011, its wholly-owned, indirect subsidiary, Madisonville Midstream LLC, entered into an Amendment to the April 1, 2011, Equipment Purchase and Sale Agreement with Peregrine Midstream Partners LLC for the sale of certain idle and non-income producing gas treatment plant equipment from our Madisonville Project located in Madison County, Texas. Under the Amended PSA, the Purchase Price of the equipment has been increased from $8,750,000 to $9,300,000, and the closing of the transaction is no longer subject to regulatory approval. A deposit of $150,000 of the Purchase Price was paid by Peregrine on April 1, 2011, an additional deposit of $150,000 was paid by Peregrine on May 31, 2011, and additional deposits will be paid by Peregrine monthly until closing, which shall take place on or before September 29, 2011. The deposits are non-refundable, though they will be credited against the Purchase Price upon closing.