GEOI Georesources, Inc. (MM)

GeoResources, Inc., (NASDAQ:GEOI), today announced an oil and gas property acquisition in the prolific Bakken Shale trend of the Williston Basin and provided an operations update.

On May 20, 2009, but effective April 1, 2009, the Company closed an acquisition of producing wells and acreage in the Bakken Shale trend of the Williston Basin. The acquisition was made through its existing joint venture with Slawson Exploration Company. Other participants in the acquisition include Northern Oil & Gas Inc. and Lario Oil & Gas Company. The Company acquired a 15% interest in approximately 60,000 net acres, and also acquired 15% of varying working interests in 59 producing and productive wells. The Company�s share of producing and productive wells adds in excess of 300,000 BOE of proved producing reserves. This reserve estimate excludes numerous proved undeveloped and probable locations. Based on June estimates, the acquisition further adds daily net production of about 180 Bopd. The Company�s net acquisition cost was approximately $10.4 million, prior to adjustments for post effective date net revenues. As a result of the acquisition, the Company now has working interests in the area ranging from 10% to 15% in approximately 100,000 net acres. Of those total acres, approximately 59,000 net acres are located in Mountrail County, with the remainder located in adjacent North Dakota counties and in Richland County, Montana. The joint venture is presently running one drilling rig and plans to add two rigs in July and possibly a fourth drilling rig by the first quarter of 2010. We currently expect to drill or participate in 45-50 wells over the next 18 months, exclusive of interests resulting from nominal acreage contributions to non-operated units. The Company expects to have an average net working interest in the range of 7%. The acquisition was funded with cash and borrowings from the Company�s Senior Secured Revolving Credit Facility.

Drilling and Operations:

To date, 16 operated joint venture wells have been drilled with a 100% success rate. The Company has also participated in numerous additional non-operated wells. The joint venture remains active and has continued to acquire attractive acreage including the acquisition announced above. Recent drilling activity includes the Nightcrawler 1-17H (4.7% WI) flowing at 700 Bopd, the Banshee 1-1H well (5.5% WI) flowing at 450 Bopd and 450 Mcfpd, with production increasing as the well cleans up and the Wombat 1-25H well (8.5% WI) which was completed in early May with initial production tests of 800 Bopd. The Jericho 1-5H well (2.8% WI) completed drilling operations in late February and is flowing up casing and producing at 300 Bopd; production will likely increase by running production tubing. Several other wells are awaiting fracture stimulation including the Raptor 1-6H (10.0% WI), the Bandit 1-29H (7.5% WI), and the Colt 1-16H well (9.1% WI). The Company is currently participating in the drilling of the Mamba 1-20H (9.3% WI) which spud May 9, 2009. Our drilling costs for Bakken Shale wells located on 640 acre units have decreased significantly over the past year due to reductions in service company costs, as well as improvements in drilling and completion techniques. Recent single-lateral wells have been completed for under $4.0 million which represents an approximate 25% reduction in completed well costs since last year. The Company expects this project to allow it to develop additional reserves at reasonable costs. Further, management believes additional upside can be realized through efficient drilling and completion techniques and in-filled drilling within existing spacing units, which has occurred in similar fields located in Montana. Currently, our joint venture is developing the acreage on 640 acre spacing units; however, our involvement with other operators has also placed us under 1,280 acre units. When the initial development phase is completed and more historical production information is available, we expect that many parts of the field will justify incremental in-fill drilling.

COMMENTS:

Frank A. Lodzinski, Chief Executive Officer of GeoResources, said, �This acquisition allows the Company to increase its interest appreciably in a core and exciting operating area. It adds immediate proved reserves and production and significantly expands our drilling and development inventory. The Bakken Shale is a premier oil play in the lower 48. Our drilling program has continued to deliver positive results. We expect to continue to develop our assets and selectively expand our acreage and drilling inventory.�

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, Gulf Coast and the Williston Basin. 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, our Annual Report on Form 10-K for the year ended December 31, 2008, 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