Recently, spherical microphone arrays (SMA) have become increasingly significant for source localization and identification in three dimension due to its spherical symmetry. However, conventional Spherical Harmonic Beamforming (SHB) based on SMA has limitations, such as poor resolution and high side-lobe levels in image maps. To overcome these limitations, this paper employs the iterative generalized inverse beamforming algorithm with a virtual extrapolated open spherical microphone array. The sidelobes can be suppressed and the main-lobe can be narrowed by introducing the two iteration processes into the generalized inverse beamforming (GIB) algorithm. The instability caused by uncertainties in actual measurements, such as measurement noise and configuration problems in the process of GIB, can be minimized by iteratively redefining the form of regularization matrix and the corresponding GIB localization results. In addition, the poor performance of microphone arrays in the low-frequency range due to the array aperture can be improved by using a virtual extrapolated open spherical array (EA), which has a larger array aperture. The virtual array is obtained by a kind of data preprocessing method through the regularization matrix algorithm. Both results from simulations and experiments show the feasibility and accuracy of the method.