Published: January 10, 2011
GeoResources, Inc. Announces Proposed Common Stock Offering
HOUSTON - (BUSINESS WIRE) - GeoResources, Inc., (NASDAQ: GEOI), today announced that it and certain
selling shareholders intend to offer, subject to market and other
conditions, 4,700,000 shares of common stock, of which 4,000,000 shares
would be sold by GeoResources and 700,000 shares would be sold by the
selling shareholders, in an underwritten public offering. In connection
with the offering, the Company and the selling shareholders expect to
grant the underwriters a 30-day option to purchase up to an additional
705,000 shares of common stock on a pro-rata basis.
GeoResources expects to utilize the net proceeds it receives from the
offering to pay down the $87.0 million outstanding balance under its
credit agreement. GeoResources expects to use any of its remaining net
proceeds from the offering along with its cash flow and credit facility
availability, primarily to fund its drilling and development
expenditures on its acreage in the Bakken Trend in North Dakota and
Montana, and its acreage in the Eagle Ford Trend in Texas, and for
incremental leasehold acquisitions and general corporate purposes.
Wells Fargo Securities is acting as Sole Book-Running Manager for the
common stock offering.
The offering is being made pursuant to effective registration statements
filed by GeoResources with the Securities and Exchange Commission
("SEC" ). A copy of the preliminary prospectus supplement and related
base prospectuses for the offering may be obtained on the SEC's website
at http://www.sec.gov
or by contacting Wells Fargo Securities, Attn: Equity Syndicate
Department, 375 Park Avenue, New York, New York 10152, Email: cmclientsupport@wellsfargo.com,
Telephone: 1.800.326.5897.
This press release is neither an offer to sell nor a solicitation of
an offer to buy any of the securities referred to above. An
offering of any such securities will be made only by means of a
prospectus supplement to the base prospectuses contained in
GeoResources' registration statements on Form S-3. Any such
prospectus shall not constitute an offer to sell or the solicitation of
an offer to buy, nor shall there be any sale of any such securities in
any state or jurisdiction in which such offer, solicitation or sale
would be unlawful prior to registration or qualification under the
securities laws of any such state or jurisdiction.
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 that includes the acquisition, drilling and
development of undeveloped leases, purchases of reserves, exploration
and re-engineering 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 included herein contains forward-looking statements
that involve significant risks and uncertainties, including our need to
replace production and acquire or develop additional oil and gas
reserves, intense competition in the oil and gas industry, our
dependence on our management, volatile oil and gas prices and costs,
uncertain effects of hedging activities and uncertainties of our oil and
gas estimates of proved reserves and reserve potential, all of which may
be substantial. In addition, past performance is no
guarantee of future performance and results. All
statements or estimates made by the Company, other than statements of
historical fact, related to matters that may or will occur in the future
are forward-looking statements. Readers are encouraged to read our
December 31, 2009 Annual Report on Form 10-K and Form 10-K/A and our
other documents subsequently 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).
There is no duty to update the statements herein.

GeoResources, Inc.
Cathy Kruse, 701-572-2020 ext 1
cathy@georesourcesinc.com
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