GeoResources, Inc. Increases 2008-2009 Capital Budget
15 Fevereiro 2008 - 1:58PM
PR Newswire (US)
HOUSTON, Feb. 15 /PRNewswire-FirstCall/ -- GeoResources, Inc.,
(NASDAQ:GEOI), today announced its current capital expenditure
budget for 2008-2009. The Company believes the existing portfolio
of properties have exploitation and exploration upside and recently
increased its capital budget to $61.5 million, including
expenditures associated with an affiliated institutional
partnership, from the previously announced $40.0 million. Estimated
expenditures are diversified and include a multitude of projects
intended to increase production through field re-engineering, well
recompletions and workovers and the development of proved and
non-proved reserves through conventional and horizontal drilling
and waterflood projects. Furthermore, the budget provides funding
for exposure to new reserves through exploratory drilling of
existing prospective acreage and expansion of seismic, acreage and
prospect inventory. The capital budget is as follows: (Logo:
http://www.newscom.com/cgi-bin/prnh/20051114/CGM073LOGO) ($
Millions) Southern District: Austin chalk drilling and development
(1) (2) $ 7.2 Other development drilling (2) 2.8 Water- flood
expansion 1.3 Exploratory drilling (3) 7.8 Re-engineering (4) 3.2
Acreage, seismic and other (5) 3.5 Northern District: Horizontal
development drilling (2) (6) 11.8 Other development drilling 1.7
Water flood and associated drilling (7) 9.7 Bakken Shale drilling
(8) 9.0 Re-engineering (4) 1.0 Acreage, seismic and other (5) 2.5
Total (8) $ 61.5 ---------- Notes: (1) Continuation of ongoing
horizontal drilling and development program, with our affiliated
institutional partnership. Includes our direct working interest and
required capital contributions. The program includes ten scheduled
wells in a one rig continuous drilling program with certain other
recompletion and frac expenditures intended to further increase
production in producing wells. The Company has a direct working
interest, plus a direct and reversionary partnership interest. The
program may be expanded with continued positive results. (2)
Includes both proved undeveloped and non-proved reserve potential.
(3) Principally South Louisiana and Gulf Coast Texas. (4) Includes
activities related to existing fields intended to enhance
production and lower operating expenses. Such expenditures include
flowlines, facilities, compression, down-hole lift methods,
recompletions and side-track drilling. The Company currently has 70
such projects including multiple wells within ten fields budgeted
for 2008. (5) Initial funds allocated for further expansion of
acreage and prospect inventory. (6) Includes eight horizontal
development wells within existing fields, where the Company has
working interests ranging from 66% - 100%. (7) Includes ten wells
where the Company's working interest is 10.5% and one well with a
5.25% working interest. Also includes three wells where the
Company's working interest is less that 1% but where, in the
opinion of management, such participation should provide valuable
technical data related to the drilling operations and reservoir
characteristics. Also includes one Bakken Shale test in Montana
where the Company holds a 50% working interest. (8) In summary, the
Company's current scheduled drilling activities include diversified
opportunities intended to develop reserves and increase production.
The current budget includes: i) 29 wells which have assigned proved
undeveloped reserves and the potential for the development of
non-proved reserves, ii) ten wells which do not have proved
reserves assigned but have the potential of developing a resource
gas play in Colorado, iii) two potentially high impact exploratory
wells at Quarantine Bay, Plaquemines Parish, Louisiana, iv) 15
Bakken Shale wells, and v) one well intended to test an emerging
shale play in the Company's Northern Region. The Company believes
the proposed expenditures and level of activity will have positive
effects on production and estimated reserve quantities. The budget
is subject to significant change as we further evaluate existing
properties and alternative projects and continue to expand our
acreage positions. This budget may be accelerated pending
evaluation of cash flow and proceeds from possible divestitures,
subject to industry considerations including drilling and service
rig availability and adequate staffing to manage activities and
control costs. In addition, certain expenditures that are held by
production may be deferred in favor of new opportunities. Frank A.
Lodzinski, Chief Executive Officer of GeoResources, said, "We have
implemented our diversified drilling and development program and
continue to expand our acreage and 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 portfolio of drilling and development
opportunities, then we focus on expanding our inventory. We have
dedicated substantially all of our free cash flow to our budget.
These projects could be accelerated and we may further expand our
activities pending additional production and proceeds from
divestitures. Our 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. We believe
our diversified approach will allow the Company to continue to grow
profitably." About GeoResources, Inc. In April, 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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