GeoResources Provides An Operating Update

GeoResources provided an operations update yesterday.

The reason for this update: GEOI initiated drilling in September, 2010, of their recently acquired Williams County acreage.

These are the wells for which GeoResources had results (all 24-hour flowbacks):

• 18170, 1,517, Slawson, Cannonball Federal 1-27-34H,  Parshall
  
• 18416, 904, Slawson, Wizard 1-35H, Big Bend
  
• 18495, 1,045, Slawson, Voyager 2-28H, Van Hook
  
• 18590, 553, Slawson, Alamo 1-19-18H, Big Bend
  
• 18621, 753, Slawson, Diamondback 1-21H, Van Hook
  
• 18870, 1,371, Slawson, Moray Federal 1-10H, Van Hook
  
• 18871, 1,394, Slawson, Neptune 1-15H, Van Hook
  
• 18749, 921, Slawson, Osprey Federal 1-26-25-30H, Van Hook

From that presser:

GEOI's Operated Bakken Shale

On September 25, 2010, we initiated drilling on our Williams County acreage with the Carlson 1-11H well, a Middle Bakken test in Section 11, T157N-R103W. The initial location is a 640 acre drilling unit and we have a 47.5% working interest.  We also plan to drill two 1,280 acre spacing units immediately following the Carlson well. Our working interests in these locations are 34% and 35%, respectively. 
We have acquired approximately 50,000 net leasehold acres in an AMI covering about 115,000 acres and as mentioned in prior releases, brought in industry partners to participate in development. As operator, we retained a 47.5% working interest, representing approximately 24,000 net acres. Assuming full development on a 1,280 acre spacing unit basis, we have a majority interest and control about forty (40) units and have working interests in another forty-two (42) units. Where we have a minority interest in a spacing unit, we will continue to focus on increasing our interests; thereby increasing the likelihood that we will be the designated unit operator.  

GEOI's Non-Operated Bakken Shale

To date, in our non-operated program located in Mountrail and adjacent counties, we have participated in 72 wells drilled by our primary operator, Slawson Exploration, with a 100% success rate.  In addition, we own minor working interests in numerous wells within the Bakken/Three Forks play.   Slawson is currently running three drilling rigs and we continue to acquire additional acreage and well interests, when reasonably available.

The following table updates our prior operations releases regarding this project (those results are up above). Generally, we report only the wells operated by Slawson, but may include others where the wells or our interests are meaningful. We do not report our numerous minor interest wells. The table below lists all such 2010 wells as we have included 30 and 60 average production rates, where data is available. We are reporting oil production only, therefore excluding natural gas and equivalents.  We expect to participate in approximately 100 wells over the next two years.