Company Adds Drilling Inventory with Previous Acquisition of Oil and Gas Properties in the Austin Chalk Trend
15 Maggio 2007 - 12:00AM
PR Newswire (US)
Update on Giddings Field Acquisition and Activity HOUSTON, May 14
/PRNewswire-FirstCall/ -- GeoResources, Inc. (Nasdaq: "GEOID" but
"GEOI" effective May 17, 2007, referred to herein as
"GeoResources"), is updating the previous announcement regarding
the Southern Bay Oil & Gas, L.P. ("Southern Bay") partnership
with GE Energy Financial Services to acquire oil and gas properties
located in the Giddings Field in the Austin Chalk trend of Texas
for $75 million. Southern Bay is a wholly owned subsidiary of
GeoResources, following the completion of a merger April 17, 2007.
(Logo: http://www.newscom.com/cgi-bin/prnh/20051114/CGM073LOGO )
The gross production from the properties is currently averaging
approximately 246 BOPD, 300 BNGLPD and 30 MMCFPD and the partners
have already achieved production increases from pre-closing levels
as a result of initial drilling and workover activities. An
additional $30 million is currently planned for further development
of these properties. We acquired both a direct 8% working interest
and a 2% general partner interest in the partnership with GE Energy
Financial Services in a transaction completed in February of this
year. GeoResources' partnership interest can increase
significantly, predicated upon realization of a contractually
defined rate of return. A total of 56 horizontal wells were
acquired in the transaction and we operate 54 of these wells. One
well was being drilled at the time of closing, which was
successfully completed on March 13, 2007 at a maximum rate of 18.6
MMCFPD with the first month's average of 12.6 MMCFPD. A second well
has recently been completed and is expected to commence sales in
the next two weeks. The rig will move to another location, expected
to spud near month end and be completed in July 2007. Additional
locations are being permitted in order to continue the drilling
program. Frank A. Lodzinski, CEO and President of GeoResources,
stated: "Adding this asset to our existing properties will allow us
to continue our profitable growth and provide additional drilling
opportunities. With the multiple locations provided by this
acquisition, we will be able to increase our production rate,
reserves and cash flow at reasonable costs. We have initially
identified a number of workover and recompletion operations and we
expect to keep a rig drilling for at least the next two years."
Further information concerning this acquisition was disclosed in
our proxy statement filed on February 23, 2007, Southern Bay's
February 28, 2007 press release and GE Energy Financial Services'
press release on May 8, 2007. 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. GeoResources and its subsidiaries and affiliates own and
operate producing oil and gas properties in the Gulf Coast, Permian
Basin, Rocky Mountains and Williston Basin, and conduct oil and gas
exploration operations in these areas. The company headquarters and
Southern Region operating offices are located in Houston, Texas and
its Northern Region office is located in Denver, Colorado. For more
information, visit our websites at http://www.geoi.net/ and
http://www.southernbayenergy.com/ The Company intends to file
required pro forma combined financial information on Form 8-K as
soon as reasonably possible, but not later than July 3, 2007.
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. GeoResources cannot make any
assurances that the agreement referenced in this release will
close. In addition, 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.georesources.net/
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