GeoResources Leonardite Facility Damaged by Fire
18 Maio 2005 - 7:21PM
PR Newswire (US)
GeoResources Leonardite Facility Damaged by Fire No Injuries
Sustained; Leonardite Production Suspended Indefinitely WILLISTON,
N.D., May 18 /PRNewswire-FirstCall/ -- GeoResources, Inc.
(NASDAQ:GEOI) (the "Company") today reported that its Leonardite
operations have been suspended indefinitely due to fire damage
sustained to its Leonardite plant in Williston, North Dakota on May
17, 2005. The fire was discovered by a Company employee at 5:30
a.m., and contained by the Williston Rural Fire Department by 1:00
p.m. No one was injured in the mishap. The fire appears to have
occurred in an area of the plant that contains offices, an
electrical room and the plant process control room. The full extent
of damage has not been determined, but the Company believes it is
likely that significant damage was done to the electrical systems
that control the operation of the plant equipment, although the
actual processing equipment was relatively unaffected. The Company
has begun to assess the damage in order to begin repairs to the
plant. The Company has a policy with St. Paul Fire and Marine
Insurance Co. to insure the plant and contents for up to $2.1
million, but does not have business interruption insurance.
GeoResources President, J. P. Vickers, said, "We are thankful that
no one was injured and we are grateful to the Williston Rural Fire
Department for their quick response and professional handling of
the situation. Although Leonardite operations have not been a
substantial portion of our cash flow or profit in recent years, the
fire is disappointing nonetheless. At this time the amount of
damage and the cost of cleanup and lost production are not known,
but we expect to provide updates as they occur." A summary of
Leonardite operations of the Company for recent periods, as
reported in its SEC reports is: Leonardite Operations Year 2004
Year 2003 Leonardite sold (tons) 10,093 6,558 Average price $127.88
$125.38 Leonardite revenue $1,290,644 $822,219 Production costs
$1,168,148 $850,373 Average production costs per ton $115.74
$129.67 Operating income (loss) $(10,542) $(150,146) Three Months
Ended Three Months Ended March 31, 2005 March 31, 2004 Leonardite
production sold (tons) 3,354 2,040 Average revenue per ton $146.98
$125.12 Leonardite revenue $492,984 $255,236 Cost of leonardite
sold $435,975 $258,134 Average production cost per ton $129.99
$126.54 Operating income (loss) $23,163 $(33,127) The Leonardite
plant and associated equipment was carried on the March 31, 2005
balance sheet of the Company at $370,498, after depreciation. About
GeoResources, Inc. GeoResources, Inc., a Williston North Dakota
based natural resources Company is engaged in three principal
business segments - oil and gas exploration and production; oil and
gas drilling; and mining and processing to make leonardite-based
products. Information herein contains forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995, which can be identified by words such as "may," "will,"
"expect," "anticipate," "estimate" or "continue," or comparable
words. In addition, all statements other than statements of
historical facts that address activities that the Company expects
or anticipates will or may occur in the future are forward-looking
statements. Readers are encouraged to read the SEC reports of the
Company, particularly its Form 10-KSB for the Fiscal Year Ended
December 31, 2004, for meaningful cautionary language disclosure.
DATASOURCE: GeoResources, Inc. CONTACT: Cathy Kruse of
GeoResources, Inc., +1-701-572-2020, Web site:
http://www.georesources.net/
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