Friday, October 15, 2010

Williams County, ND: GeoResources Inc. - Bakken Shale Update

By Andrea:

GeoResources Inc. (GEOI) recently released an operational update on the Bakken Shale located in Williams County, ND. They have acquired new land and have begun drilling in the area:

On September 25, 2010, they initiated drilling on the 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 they have a 47.5% working interest. We also plan to drill two 1,280 acre spacing units immediately following the Carlson well. Their working interests in these locations are 34% and 35%, respectively.

GeoResources 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, they retained a 47.5% working interest, representing approximately 24,000 net acres. Assuming full development on a 1,280 acre spacing unit basis, they have a majority interest and control about forty (40) units and have working interests in another forty-two (42) units. Where they have a minority interest in a spacing unit, they will continue to focus on increasing our interests; thereby increasing the likelihood that they will be the designated unit operator.

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