GeoResources, Inc. Provides Operations Update
23 Outubro 2007 - 11:00AM
PR Newswire (US)
HOUSTON, Oct. 23 /PRNewswire-FirstCall/ -- GeoResources, Inc.,
(NASDAQ:GEOI), today announced its current capital expenditure
budget and further provided an operations update on its activities.
At present, the Company's daily production totals exceed 3,400 BOE
per day including the properties acquired on October 16, 2007, as
previously announced. (Logo:
http://www.newscom.com/cgi-bin/prnh/20051114/CGM073LOGO) Capital
Budget The Company has established a capital expenditure budget of
approximately $40 million, exclusive of possible development
expenditures associated with exploratory success, as follows:
Horizontal Drilling: ($millions) Rockies and Williston areas $ 5.3
Texas $ 6.2 Conventional Drilling $ 3.4 Water flood $ 7.1
Exploratory drilling (1) $ 6.0 Re-engineering (2) $ 7.0 Other (3) $
5.0 (1) Includes both conventional and horizontal drilling
projects. (2) Includes activities related to existing fields
intended to lower operating expenses and enhance production
attributes by lowering decline rates and downtime. Such
expenditures include expenditures related to facilities,
compression, down-hole lift methods, recompletions and side-track
drilling. (3) Includes estimated acreage and seismic costs. The
budget is subject to change as the Company reevaluates alternative
projects in connection with its recent major acquisition and
further expands its portfolio. The Company expects that the
majority of expenditures will occur during the remainder of 2007
and 2008, but certain projects may extend into 2009, specifically
including, acreage acquisition, projected water flood and
horizontal drilling projects. This budget may be accelerated
pending drilling and service rig availability and adequate staffing
to effectively manage activities and control costs. In addition,
certain expenditures may be deferred in favor of new opportunities.
Operations Update: Texas: The Tom Haynie Unit #1H, located in
Grimes County, Texas, has been successfully completed and placed on
production. The well was drilled to a total measured depth of
19,883 feet, including a vertical depth of 13,996 feet and a
horizontal leg of 6,166 feet and has averaged 17.3 MMCFPD over the
initial 12 days of production. The Company also commenced drilling
the W. Richards Unit #1H, which will be its first dual horizontal
lateral. This well is expected to be completed in December 2007.
The Company has acquired additional acreage, is in the process of
permitting additional drilling locations and, based on continued
technical review and well performance, intends to retain the
current drilling rig and crew and spud a new well approximately
every 60 days for the next two or three years. The Company is the
operator of the wells and holds a direct 7.2% working interest and
a 2% general partner interest in an affiliated partnership, which
holds an 82.8% working interest. The 2% general partner interest
increases to 35%, pending partnership payout plus a specified rate
of return. North Dakota: In North Dakota, the Company has expanded
its Bakken Shale acreage position with its joint venture partner,
Slawson Exploration Company, Inc., to include a 10%-15% working
interest in approximately 38,000 gross (26,000 net) acres in
Mountrail County. The acreage includes leases in proximity to
significant discoveries by large independent operators. The Company
and its partners currently have minor interests in three wells that
have or will likely commence drilling operations prior to the end
of the fourth quarter of 2007. Further, the Company and joint
owners expect to spud a horizontal well in the first quarter of
2008 depending on drilling results of other wells in the vicinity
and rig availability. In addition, the Company has filed an
application with the appropriate regulatory agencies to approve a
6,600 acre secondary oil recovery (water flood) unit in the
Starbuck Field in Bottineau County. The Company expects regulatory
agency approval and has plans to begin drilling the first five
water injection wells later in the fourth quarter of 2007. The
Company has already initiated work on existing wells and facilities
in the field that will be part of the water flood. Subject to final
unitization approval, the Company expects to own about 90% working
interest in the Starbuck Madison Unit and plans to initiate water
injection before year-end 2007. The Company also submitted permit
applications for two horizontal wells in the Wayne Field in
Bottineau County in existing oil reservoirs. These development
wells, the Ballantyne-State/Steinhaus H2 and the Oscar Fossum H5,
are scheduled to spud before year-end. The Company owns a 100%
working interest in the Ballantyne-State Steinhaus H2 and a 67%
working interest in the Oscar Fossum H5. Louisiana: In Lafourche
Parish, Louisiana the Company has begun work to prepare its Dupuy
prospect for drilling. The prospect includes two wells and the
first well is expected to spud in November. Immediately thereafter,
the Company expects to spud the first of two possible wells in its
adjacent Moore Prospect. The Company has a 10% working interest in
Dupuy and a 5% working interest in Moore and will operate both
prospects. Both prospects are located in the Raceland Field and
will be directionally drilled for oil objectives above 9,000 feet.
These prospects were assembled and promoted to third parties, by
Southern Bay Energy, a wholly owned subsidiary, prior to its merger
with the Company. The Company may acquire additional interests in
these prospects and expects to retain larger interests in future
drilling projects along the Texas and Louisiana Gulf Coast.
Comments: Frank A. Lodzinski, Chief Executive Officer of
GeoResources, said, "We have implemented our initial drilling and
development program and continue to expand our prospect inventory.
Our actions are consistent with our business strategy which we have
demonstrated in prior companies. Specifically, we first build a
cash flow base and initial portfolio of drilling and development
opportunities, then our management and technical staff focus on
expanding our inventory. Our current focus includes the Rockies,
the Williston Basin, the Gulf Coast and South Texas, where there is
the potential to add both high impact wells and long life economic
reserves. With the addition of the property acquisition announced
last week, we now produce over 3,400 BOEPD. The resulting cash flow
supports our increasing program to grow production through the
drill bit. Our drilling results demonstrate the depth and
capability of our internal geological, engineering and operating
staff and support our business model, which combines acquisitions,
exploitation and exploration. We intend to continue to promote
institutional and industry partners to subsidize our overhead,
manage risk and favorably influence finding costs, but we expect to
increase our direct drilling participation commensurate with our
growth. We believe our diversified approach will allow the Company
to continue to grow profitably." About GeoResources, Inc. On April
17, 2007, the Company completed its mergers with Southern Bay Oil
& Gas L.P. and Chandler Energy, LLC. The management of Southern
Bay and Chandler became the principal management of the combined
entity. Corporate headquarters are located in Houston, Texas. The
Company conducts its exploration development and production
operations through wholly owned subsidiaries. Activities in the
Southern Region are conducted through Southern Bay Energy, LLC,
located in Houston, Texas and Northern Region operations are
conducted through G3 Energy LLC, located in Denver, Colorado. The
Company also maintains a regional office in Williston, North
Dakota. For more information, visit our website at
http://www.georesourcesinc.com/. Forward-Looking Statements
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. 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, 2006, for
meaningful cautionary language disclosure.
http://www.newscom.com/cgi-bin/prnh/20051114/CGM073LOGO
http://photoarchive.ap.org/ DATASOURCE: GeoResources, Inc. CONTACT:
Cathy Kruse of GeoResources, Inc., +1-701-572-2020, ext 113, Web
site: http://www.georesourcesinc.com/
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