GeoResources, Inc. Provides Operations Update Reports Successful Horizontal Drilling in Texas and North Dakota
01 Maio 2008 - 10:00AM
Business Wire
GeoResources, Inc., (Nasdaq:GEOI), today provided an Operations
Update. The Company continues to execute on its capital budget as
well as its asset rationalization and divestiture program. During
the first quarter of 2008, GeoResources continued its successful
development of its Austin Chalk acreage through its horizontal
drilling program in the Giddings Field, principally located in
Grimes County, Texas. Two additional wells have been completed in
the first quarter, resulting in a 100% success rate since
initiation of the program in February 2007. The East Richards #1-H
was completed in March as a single lateral and has averaged 9.7
MMCFPD over the first 30 days of production. Based on performance,
an offsetting infill location may be drilled, on acreage that is
held by production, to capture additional reserves. The Keisler
#1-H, which was completed in Jan 2008, had cumulative production of
almost 900 MMCF in its first 90 days of production and is currently
producing over 11 MMCFPD. The Company is currently drilling the
Jeff Haynie #1-H as a dual lateral. This well is expected to be
completed during May. The rig will then move to the Keisler #2-H
which is a direct offset to the Keisler #1-H. Current operated
gross production from the properties is approximately 51 MMCFPD.
The current rate is 175% over the 29 MMCFPD that field averaged
during January 2007, immediately prior its acquisition. The
increase is a direct result of the drilling program and other
activities initiated by the Company, including, operational
workovers, re-engineering enhancements and pipeline improvements.
The Company has acquired additional acreage and is in the process
of permitting more drilling locations. Based on continued technical
review, successful leasing and acceptable well performance,
GeoResources expects to retain the current drilling rig and crew
and spud a new well approximately every 60-75 days for the next
three years. The Company is the operator of the wells and holds a
direct 7.2% working interest. In addition, an affiliated
partnership owns an 82.8% working interest. As general partner and
partnership manager, the Company holds a 2% general partner
interest which may increase to 35.66%, in accordance with terms of
the partnership agreement. In south Louisiana, the Company recently
completed two shallow exploration wells in Lafourche Parish. The
Davaine and Parr wells are both located in the Raceland field and
since completion, have averaged 97 BOPD and 450 MCFPD for the two
wells combined. This project will continue with two additional
prospects expected to be drilled in the summer of 2008. These
prospects were generated prior to consummation of the Merger in
April 2007, and the majority of the prospect interests were
promoted out to industry partners. Accordingly, the Company has a
10% working interest and the terms of participation included a
retained over-riding royalty and back-in after payout. GeoResources
has completed drilling a shallow multi-lateral horizontal oil well
in its Wayne field, located in Bottineau County, North Dakota. The
Oscar Fossum H5 is currently being completed and has tested oil
rates exceeding 200 BOPD. Initial production is expected in May.
Production equipment and facilities are presently being installed.
The Company has a 67% working interest in this well. The drilling
rig was moved to the Ballantyne-State/Steinhaus H2 and is presently
drilling the first of two planned laterals. The Company has a 100%
working interest in the Ballantyne-State/Steinhaus H2, which should
be completed in May and placed on production in the 2nd quarter.
These are relatively shallow wells with a true vertical depth of
approximately 4,000 feet. Both wells are expected to be similar to
other horizontal wells in the area which have had initial rates of
up to 275 BOPD and reserves ranging from 250-400 MBO per well. The
Company and its joint venture partner, Slawson Exploration, are in
the process of completing a horizontal Bakken well in Mountrail
County, North Dakota. The Company has a 5.1% working interest in
the Pathfinder #1-9H, being the first of a multi-well Slawson
operated drilling program in and near the prolific Parshall and
Sanish fields. The Pathfinder well, which encountered hydrocarbons
while drilling, is currently undergoing multi-stage frac operations
and is expected to be completed in May. Drilling has commenced on
the Jackal #1-17H and Slawson plans to keep the rig drilling
throughout 2008 and 2009. At present 13 wells are scheduled and
GeoResources working interests range from 5 to 10% in these wells.
The joint venture holds approximately 26,000 net acres in Mountrail
County. GeoResources has participated in eight wells and currently
expects to participate in six additional scheduled wells which are
operated by other independents. Four of the wells are producing and
others are drilling or completing. These participations are
financially nominal and thus far average less than 1%, due to
minimal lease ownership in such units. However, these nominal
participations result in valuable engineering and geological data.
While the Company will concentrate on Slawson operated wells, it is
evaluating technical information and attempting to increase its
position in this expanding play. DIVESTITURES Since the beginning
of 2008, the Company has sold or has agreements in place to sell
approximately $21.8 million of properties. The Company has
previously sold non-core properties in Michigan, Louisiana,
Oklahoma and Texas. Properties currently under sales contract are
located along the gulf coast in Texas and Louisiana and are
expected to be closed in May. The properties average approximately
400 BOEPD. COMMENTS Frank A. Lodzinski, Chief Executive Officer of
GeoResources, said, �Our diversified drilling and development
program is showing positive results as we continue to develop our
assets and expand our acreage and prospect inventory. Asset
rationalization is an important and integral part of our business
strategy and, among other important factors, allows us to focus our
attention on assets and acreage with good current cash flow and net
income attributes and considerable upside potential. The sale of
these properties and perhaps others in the portfolio is intended to
streamline operations, further improve operating statistics, focus
on operations and drilling activities with potentially greater
upside and reduce debt, thereby freeing up capital for new deals
and our expanding acreage positions. The capital budget we
announced in 2007 is proceeding and we are encouraged by results.
Our budget, as more fully discussed in prior releases and filings
with the SEC, includes multiple projects ranging from water-flood
implementation and expansion, to development drilling, to high
impact exploration drilling. We believe our diversified approach
will allow the Company to continue to grow profitably.� About
GeoResources, Inc. GeoResources, Inc. is an independent oil and gas
company engaged in the acquisition and development of oil and gas
reserves through an active and diversified program which includes
purchases of reserves, re-engineering, and development and
exploration activities, currently focused in the Southwest and Gulf
Coast, Williston Basin and Rocky Mountains. In April 2007, the
Company completed the merger with Southern Bay and Chandler Energy,
LLC. For more information, visit our website at
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, readers are encouraged to read our
Annual Report on Form 10-KSB for the year ended December 31, 2007,
and any and all other documents filed with the SEC regarding
information about GeoResources for meaningful cautionary language
in respect of the forward-looking statements herein. Interested
persons are able to obtain free copies of filings containing
information about GeoResources, without charge, at the SEC�s
Internet site (http://www.sec.gov).
Georesources (NASDAQ:GEOI)
Gráfico Histórico do Ativo
De Jun 2024 até Jul 2024
Georesources (NASDAQ:GEOI)
Gráfico Histórico do Ativo
De Jul 2023 até Jul 2024