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Glossary of Terms

In this report, unless the context otherwise requires, the following terms shall have the indicated meanings. A reference to an agreement means the agreement as it may be amended, supplemented or restated from time to time.

Abbreviations & Conversions


A

"1933 Act" means the United States Securities Act of 1933, as amended.

C

"CBM" means coal bed methane, which is methane found in coal seams. It is produced by non-traditional means, and therefore, while it is sold and used the same as traditional natural gas, its production is different. CBM is generated either from a biological process as a result of microbial action or from a thermal process as a result of increasing heat with depth of the coal. Often a coal seam is saturated with water, with methane held in the coal by water pressure.

"Company" or "GeoPetro" means GeoPetro Resources Company, a corporation incorporated under the laws of the State of California and its wholly owned subsidiaries.

"Condensate" means a low-density, high-API gravity liquid hydrocarbon product that is generally produced in association with natural gas. Condensate is mainly composed of propane, butane, pentane and heavier hydrocarbon fractions.

E

"EIA" means the United States Energy Information Administration.

F

"Fannin Well" means the Angela Farris Fannin No. 1 well located at the Madisonville Field.

"Farmout" means an agreement whereby a third party agrees to pay for the drilling of a well on one or more of GeoPetro's properties in order to earn an interest therein with GeoPetro retaining a residual interest in such properties.

G

"GeoPetro" or "Company" means GeoPetro Resources Company, a corporation incorporated under the laws of the State of California and its wholly owned subsidiaries.

"GeoPetro Alaska" means GeoPetro Alaska LLC, an Alaska limited liability company, which is a wholly owned subsidiary of GeoPetro.

"GeoPetro Canada" means GeoPetro Canada Ltd., an Alberta corporation, which is a wholly owned subsidiary of GeoPetro.

L

"LPG" means liquefied petroleum gas.

M

"Madisonville Field" means the oil and natural gas exploration, development and production project at the Madisonville Field.

"Magness Well" means the UMC Ruby Magness No. 1 well located at the Madisonville Field.

P

"Proved developed oil and gas reserves" means reserves that can be expected to be recovered through existing wells with existing equipment and operating methods. Additional oil and gas expected to be obtained through the application of fluid injection or other improved recovery techniques for supplementing the natural forces and mechanisms of primary recovery should be included as “proved developed reserves” only after testing by a pilot project or after the operation of an installed program has confirmed through production response that increased recovery will be achieved.

"Proved developed nonproducing reserves" means reserves expected to be recovered from zones behind casing in existing wells.

"Proved oil and gas reserves" means estimated quantities of crude oil, natural gas, and natural gas liquids which geological and engineering data demonstrate with reasonable certainty to be recoverable in future years from known reservoirs under existing economic and operating conditions, i.e., prices and costs as of the date the estimate is made. Prices include consideration of changes in existing prices provided only by contractual arrangements, but not on escalations based upon future conditions.

  1. Reservoirs are considered proved if economic producibility is supported by either actual production or a conclusive formation test. The area of a reservoir considered proved includes (A) that portion delineated by drilling and defined by gas-oil and/or oil-water contacts, if any; and (B) the immediately adjoining portions not yet drilled, but which can be reasonably judged as economically productive on the basis of available geological and engineering data. In the absence of information on fluid contacts, the lowest known structural occurrence of hydrocarbons controls the lower proved limit of the reservoir.

  2. Reserves which can be produced economically through application of improved recovery techniques (such as fluid injection) are included in the "proved" classification when successful testing by a pilot project, or the operation of an installed program in the reservoir, provides support for the engineering analysis on which the project or program was based.

  3. Estimates of proved reserves do not include the following:
    1. oil that may become available from known reservoirs but is classified separately as "indicated additional reserves";

    2. crude oil, natural gas, and natural gas liquids, the recovery of which is subject to reasonable doubt because of uncertainty as to geology, reservoir characteristics, or economic factors;

    3. crude oil, natural gas, and natural gas liquids, that may occur in undrilled prospects; and

    4. crude oil, natural gas, and natural gas liquids, that may be recovered from oil shales, coal, gilsonite and other such sources.

"Proved undeveloped reserves" means reserves that are expected to be recovered from new wells on undrilled acreage, or from existing wells where a relatively major expenditure is required for recompletion. Reserves on undrilled acreage shall be limited to those drilling units offsetting productive units that are reasonably certain of production when drilled. Proved reserves for other undrilled units can be claimed only where it can be demonstrated with certainty that there is continuity of production from the existing productive formation. Under no circumstances should estimates for proved undeveloped reserves be attributable to any acreage for which an application of fluid injection or other improved recovery technique is contemplated, unless such techniques have been proved effective by actual tests in the area and in the same reservoir.

R

"Redwood" means Redwood Energy Company, a Texas corporation, which is a wholly‑owned subsidiary of GeoPetro and which is the general partner of, and holds a 5% interest in, Redwood LP.

"Rodessa Formation" means the geological formation at the Madisonville Field existing at a depth of approximately 12,000 feet.

S

"Seismic" means data collected that uses reflected seismic waves to produce images of the Earth’s subsurface. The method requires a controlled seismic source of energy, such as dynamite or a specialized air gun. By noting the time it takes for a reflection to arrive at a receiver, it is possible to estimate the depth of the feature that generated the reflection.

T

"Tertiary Sandstones" means sandstones which were deposited during a geologic time period ranging from 2 to 63 million years ago.

U

"U.S. GAAP" means the accounting principles generally accepted in the United States.

W

"Wilson Well " means the Wilson No. 1 well located at the Madisonville Field.

"Working Interest" means the percentage of undivided interest held by a party in the oil and/or natural gas or mineral lease granted by the mineral owner, which interest gives the holder the right to “work” the property (lease) to explore for, develop, produce and market the leased substances.




Abbreviations & Conversions

API American Petroleum Institute
bbl and bbls barrel and barrels, each barrel representing 34.972 Imperial gallons or 42 U.S. gallons
bbls/d barrels per day
Bcf one billion cubic feet
boe barrels of oil equivalent converting 6 mcf of natural gas to one barrel of oil equivalent and one barrel of natural gas liquids to one barrel of oil equivalent. Measures of boes may be misleading, particularly if used in isolation. This conversion ratio is based on an energy equivalency conversion method primarily applicable at the burner tip and does not represent a value equivalency at the wellhead, but is a commonly used industry benchmark.
boe/d barrels of oil equivalent per day
degree API an indication of the specific gravity of crude oil measured on the API gravity scale. Liquid petroleum with a specified gravity of 28 degree API or higher is generally referred to as light crude oil.
mbbls one thousand barrels
mboe one thousand barrels of oil equivalent
Mcf one thousand cubic feet
Mcf/d one thousand cubic feet per day
mmbbls one million barrels
MMBtu one million British Thermal Units
MMcf one million cubic feet
MMcf/d one million cubic feet per day
psig pounds per square inch gauge
Tcf one trillion cubic feet