GeoResources, Inc. Reports Proved Reserves

467% of Production Replaced; Reserve Quantities Increase 42%

Houston, Texas, March 2, 2010 – GeoResources, Inc., (NASDAQ: GEOI), today announced its proved reserves of crude oil and natural gas as of December 31, 2009.  Based on the prescribed Securities and Exchange Commission (“SEC”) rules, proved reserves were estimated at 20.7 million barrels of oil equivalent (“Mmboe”), being 55% oil and 75% proved developed.  Proved reserves increased 6.1 Mmboe for a growth rate of 42% from December 31, 2008 to December 31, 2009.  The Company replaced 467% of the 1.7 Mmboe of production during the year; 150% of production was replaced through drilling and the remainder resulted from core area acquisitions and upward reserve revisions.  The independent reservoir engineering firm of Cawley, Gillespie & Associates, Inc. prepared the Company’s year-end reserve report.

The present value of future cash flows before income taxes as of December 31, 2009, discounted at 10% (SEC PV10, a non-GAAP measure), totaled $217.6 million, up 45% from December 31, 2008.  The following table shows the proved reserves by category using SEC guidelines.

SEC Proved Reserves – December 31, 2009

The SEC proved reserves as of December 31, 2009 were calculated based on new guidelines that went into effect for the Company’s year-end 2009 oil and gas reporting.  The new pricing rules require that reserve calculations utilize the unweighted average first day of the month prices for the prior twelve months to December 31, 2009, contrasted with the pricing methodology required in prior years which used prices existing on December 31.  Under the new rules, prices were $61.18 per barrel of crude oil and $3.83 per Mmbtu for natural gas, prior to adjusting for quality and basis differentials.  Prices used as of December 31, 2008 were $44.60 per barrel of crude oil and $5.62 per Mmbtu for natural gas. 

Utilizing the NYMEX forward curve as of December 31, 2009 proved reserves were 23.7 Mmboe with a PV10 value of $422 million.  Prior to adjusting for quality and basis differentials prices ranged from $82.20 per barrel and $5.79 per Mmbtu in 2010 to $98.05 per barrel and $7.44 per Mmbtu in 2017; prices were held flat thereafter.  The following table shows proved reserves by category using a NYMEX based pricing methodology.  

NYMEX Forward Price Proved Reserves – December 31, 2009

Partnership Reserves

            In addition to the direct working interests reflected above, GeoResources also holds a general partner and operating interest in two limited partnerships.  The Company’s share of partnership reserves are not reflected in its direct interests shown above.  The following tables show the Company’s estimated net share of the affiliated partnerships’ reserves and estimated present value of future net income discounted at 10% using SEC guidelines and the NYMEX forward curve comparable to the above tables.  

GeoResources share of Partnerships using SEC Proved Reserves – December 31, 2009

Utilizing the NYMEX forward curve as of December 31, 2009, the Company’s share of the partnerships’ estimated total proved reserves are 1.7 Mmboe with a PV10 value of $22 million.

GeoResources share of Partnerships using NYMEX Price Proved Reserves – December 31, 2009

Comments
Mr. Frank A. Lodzinski, Chief Executive Officer of GeoResources, said, “We are pleased with the significant increases we have reported to our proved reserves.  Our track record over the past three years shows a 105% compound annual growth rate for proved reserves and 81% for production.  It is important to note that our business strategy includes a portfolio of both crude oil and natural gas projects.  Accordingly, we are somewhat insulated from commodity price deterioration in one commodity versus the other.  As we continue into 2010, we expect to increase our drilling budget and, given our liquidity take advantage of strategic corporate or asset acquisitions.  We are motivated and focused on our business strategy to continue our profitable growth.”

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, Gulf Coast and the Williston Basin.  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 our 10-K/A for the year ended December 31, 2008,  annual and other reports and any and all other documents on file with the SEC regarding information about GeoResources and  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).

Copyright (C) 2009, GeoResources, Inc . All right reserved.
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