EPS100Momentum (71.52)

GEOI rebound starting today, after gaping down roughly 30%

June 26, 2008 – Comments (0) | RELATED TICKERS: GEOI , PDO

from its high of $29+ GEOI now back on the rebound at
$19.41, I expect the rebound to be fast and furious because I believe
this stock will get the attention that PDO got. GEOI is hands down
better than PDO in my opinion.

http://finance.yahoo.com/q?s=geoi

GeoResources, Inc. Provides Operations Update
Thursday June 26, 9:19 am ET
Continues successful horizontal drilling in Texas and North Dakota;
Completes Acquisition and Divestitures

HOUSTON--(BUSINESS WIRE)--GeoResources, Inc., (Nasdaq:GEOI - News),
today provided an operations update. The Company has completed
additional horizontal wells in Texas and North Dakota, closed its
recently announced Oklahoma acquisition and completed its current
divestitures of certain non-core producing properties.


DRILLING RESULTS

During the second quarter of 2008, GeoResources completed the Jeff
Haynie #1-H as its second dual lateral well in the Austin Chalk
formation in the Giddings Field, Grimes County, Texas. This well has
averaged over 17 MMCFPD in the first 20 days of production. This well
is the eighth successful completion since closing the acquisition of
the field in February of 2007, and the Company has achieved a 100%
success rate in drilling these Austin Chalk horizontal wells. The
Company is currently drilling the Keisler #2-H as a dual lateral well
which is expected to be completed and placed on production during the
third quarter.

The Company has acquired additional acreage in the Giddings Field area
and is in the process of permitting more drilling locations. Based on
continued technical evaluation, 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 these wells and holds
a direct 7.2% working interest. In addition, an affiliated partnership
owns an 82.8% working interest. The Company holds a 2% general partner
interest in the partnership, which increases significantly in
accordance with economic performance parameters under the terms of the
partnership agreement.

GeoResources has completed drilling two shallow horizontal oil wells
in its Wayne Field, Bottineau County, North Dakota. The Oscar Fossum
H5 averaged 153 BOPD in its first 30 days of production. The Company
has a 67% working interest in this well. The Company has a 100%
working interest in the Ballantyne-State/Steinhaus H2, which has been
placed on production at a rate of about 55 BOPD. The first horizontal
leg of the Ballantyne-State/Steinhaus H2 was curtailed at
approximately 2,400 feet due to mechanical considerations and the
Company is planning a re-entry and second horizontal leg at a later
date concurrent with additional drilling in the field. Other
horizontal wells in the area generally have reserves ranging from
250-400 MBO per well.

The Company holds a 10 – 15% working interest in approximately 26,000
acres in Mountrail County, North Dakota and is participating in
numerous Bakken shale wells through a joint venture. At present, five
horizontal Bakken wells in Mountrail County, North Dakota, operated by
Slawson Exploration, are in various stages of drilling and completion.
The Jackal #1-17H, in which the Company has a 6.8% working interest,
has recently been completed and is flowing oil up the casing at an
initial rate of 418 BOEPD. The Company has a 5.1% working interest in
the Pathfinder #1-9H which encountered hydrocarbons and is expected to
be completed in July. GeoResources also holds a 5.1% working interest
in the Prospector #1-36H which is currently waiting on completion and
also experienced hydrocarbon shows during drilling. Slawson has spud
the Payara #1-21H with the Company having a 6.2% working interest and
a second rig has been contracted which is drilling the Prowler #1-16H
well where the Company holds a 6.2% working interest. Continuous
drilling with one drilling rig is expected throughout 2008 and 2009
and a second rig will be used pending availability. At present, 11
additional wells are scheduled and GeoResources' working interests
range from 5 to 10% in these wells. Additional locations are being
permitted. In addition, GeoResources has small interests in eight
wells and currently expects to participate with other operators in six
additional scheduled wells. These small participations result in
valuable engineering and geological data. As the Company concentrates
on Slawson operated wells, it will evaluate all available technical
information while attempting to increase its position in this
expanding play.

OKLAHOMA ACQUISITION

This previously announced acquisition was formally closed and funded
on June 6, 2008 and includes properties located throughout Oklahoma.
This acquisition consists of approximately 200 producing wells of
which 70 will be operated by the Company. There are also approximately
100 additional drilling locations with the vast majority being proved
undeveloped locations. The Company purchased its direct interest in
the properties for approximately $12.8 million, an effective purchase
price of $1.49/MCF. The acquisition added approximately 8.6 BCFE of
net proved reserves with a PV 10% of $32.2 million based on prices of
$124/BBL and $10.67/MCF of gas. Proved developed reserves represent
approximately 39% of the acquired proved reserves. The existing wells
are estimated to add a net 600 MCFE per day to the Company throughout
the remainder of 2008. In addition, the Company paid approximately $1
million for its 2% General Partner interest in the remaining 82% of
the assets with a substantial financial partner as the sole limited
partner. After a specified rate-of-return, the 2% General Partner
interest increases significantly. Management believes that this
acquisition provides significant exploration and development
opportunities directly associated with the acquired interests and in
regional proximity thereto. GeoResources' management and technical
staff have significant prior experience in Oklahoma.

EXPLORATION

Quarantine Bay Field, Plaquemines Parish, Louisiana - as previously
disclosed the Company holds 13,956 gross and 4,885 net acres below
10,500 feet and is participating in an exploration program intended to
drill prospects below existing field production. The Quarantine Bay
field has produced approximately 180 million barrels of oil and 285
BCF of natural gas in normal pressured zones above 10,500 feet. The
Company believes the deeper exploration potential to be significant.
Accordingly, the 3-D seismic survey was acquired in 2007 and after
initial interpretation and regional review, Schlumberger has been
engaged to reprocess the 3-D seismic data and provide further
interpretative geological and geophysical services. Based on their
initial review Schlumberger has initially identified 13 seismically
defined prospect leads and confirmed certain prospect leads previously
identified by the Company. Identified prospect leads are similar to
producing regional analogies. Data reprocessing and interpretation is
expected to be completed in the third quarter 2008 and detailed
mapping and interpretation will proceed thereafter. We anticipate this
will result in identification of additional prospects and enhanced
definition of prospect leads. Pending the results and timing of
reprocessing and interpretation, the Company has scheduled two initial
test wells in mid 2009. The initial well is intended to test a
prospective zone at approximately 11,000 feet and the second well is
intended to test several objectives from about 13,000 to 15,500 feet.

St. Martinville Field, St. Martin Parish, Louisiana – the Company has
initiated a 3-D project to image additional drilling potential. The
field has produced over 14 million barrels of oil at depths ranging
from 3,000 feet to 9,500 feet since its discovery and has not been
evaluated with modern 3-D technology. The Company holds 1,322 gross
and 1,283 net acres, which represents a 100% working interest and
virtually all of the minerals (therefore no royalty burden). A
successful well was drilled in late 2005 to a depth of 4,700 feet that
initially flowed over 100 BOPD, is still producing 30 BOPD and has
several behind pipe zones. One additional well is presently budgeted
for the first quarter of 2009. We expect that the 3-D shoot will be
completed in the first quarter of 2009 and will lead to additional
drilling.

RE-ENGINEERING

Re-engineering of older fields with further development potential is
an integral part of the Company's business strategy. Accordingly in
the second quarter of 2008 these projects included workovers of
existing wells, restoring shut-in wells to production, redesign of
artificial lift methods and recompletions. Re-engineering projects are
designed to add rate but also to arrest production declines and reduce
down-time and operating expenses. During the second quarter of 2008
the Company added gross production of approximately 40 BOPD and 850
MCFD through these re-engineering efforts.

DIVESTITURES

The Company closed the sales of its planned property divestitures at
the end of May. These remaining transactions consisted of four
non-core fields in Louisiana and Texas and were sold for approximately
$13 million. These properties, which were producing approximately 390
BOPD, included fields located in inland waters with short productive
lives, limited upside, high operating and administrative costs and
significant plugging and abandonment obligations. These sales will
allow the Company to focus on activities that have greater development
and exploration potential and therefore, higher potential returns.
Since January 1, 2008, the Company has sold nine producing fields for
total proceeds of approximately $22 million and redeployed the
proceeds into new properties with significantly greater development
and exploration potential in the Williston Basin and Oklahoma.

COMMENTS

Frank A. Lodzinski, Chief Executive Officer of GeoResources, said,
"Our diversified drilling and development program continues to deliver
positive results. We expect to continue to develop our assets and
expand our acreage and prospect inventory. In addition, phase one of
our property high grading program is complete and we have redeployed
proceeds into properties and acreage with longer production lives and
greater development and exploration potential. We are considering
additional divestitures, including our Black Warrior Basin assets in
Alabama and Mississippi and other nominal properties. Our large
exploration play at Quarantine Bay is proceeding with initial drilling
scheduled for mid 2009. The capital budget we announced in earlier
this year is proceeding and we are encouraged by results. This 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 are very pleased with our entry into Oklahoma, an area
where we have considerable prior experience. That acquisition brings
significant drilling opportunities and we believe we can expand in the
areas. Over the next few months we expect to be revising our capital
budget to incorporate our Oklahoma drilling and to reflect results of
projects under development. 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, the Williston Basin and the
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, our Annual Report on Form
10-KSB/A 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).


Contact:

GeoResources, Inc.
Cathy Kruse, 701-572-2020 ext 113
cathyk@geoi.net

Source: GeoResources, Inc.