GEOI Georesources, Inc. (MM)

GeoResources, Inc. (NASDAQ: GEOI) today announced it has entered into definitive agreements with institutional investors to sell 1.53 million shares of unregistered common stock in a private placement for $22.50 per share for gross proceeds of $34.5 million. The investors in this private placement will also receive five-year warrants to purchase up to an additional 613,000 shares at an exercise price of $32.43. Proceeds from the transaction will be used to repay indebtedness and to fund exploration and development, acquisitions, hedging activities and general corporate purposes. Wachovia Securities acted as sole placement agent for the offering and C.K. Cooper & Company acted as financial advisor to the Company. This press release shall not constitute an offer to sell or the solicitation of an offer to buy securities. The shares have not been registered under the Securities Act of 1933 or applicable state securities laws and may not be offered or sold in the United States or any state thereof absent registration under the Securities Act and applicable state securities laws or an applicable exemption from registration requirements. As part of this transaction, GeoResources has agreed to file a registration statement covering the resale of the shares of common stock and the shares of common stock issuable upon exercise of the warrants acquired in the private placement. 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).