WILLISTON, N.D., Nov. 15 /PRNewswire-FirstCall/ -- GeoResources, Inc., (Nasdaq: GEOI), today reported third quarter 2006 net income of $523,415, or $0.14 per share, on revenue of $2,482,041, compared to third quarter 2005 net income of $575,927, or $0.15 per share, on revenue of $2,375,086. Operating income for the quarter was $758,472 in 2006 versus $709,726 in 2005. Earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) for the third quarter of 2006 was $864,706 compared to $927,622 for the third quarter of 2005.(1)
For the first nine months of 2006 net income was $1,905,228, or $0.50 per share, on revenue of $7,162,875 versus net income of $1,697,326, or $0.44 per share, on revenue of $6,083,670 during the first nine months of 2005. Operating income for the nine months increased 54% to $2,351,560. EBITDA for the first nine months was $2,916,184, compared to $2,615,387 during the same period in 2005. Increased production combined with higher commodity prices generated greater revenue. However, third quarter 2006 net income declined $53,000 as a result of $169,000 of costs associated with the previously announced merger agreement with Southern Bay Oil & Gas, L.P. and Chandler energy, LLC.
GeoResources sold a total of 33,548 BOE during the third quarter 2006, a 12% increase compared to 29,978 BOE in the third quarter 2005. For the nine months ended September 30, 2006, GeoResources sold a total of 100,575 BOE a 17% increase over the 85,820 BOE sold during the same period in 2005.
GeoResources' subsidiary, Western Star Drilling Company (WSDC), reported 45 operating days in the second quarter and 128 days in the first nine months of 2006. WSDC drilled three wells for third parties during the third quarter of 2006, generating drilling revenue of $523,555 compared to $694,452 in the third quarter 2005. For the first nine months, drilling revenue increased 36% to $1,565,200 in 2006 compared to $1,155,095 for same period in 2005.
SOURCE GeoResources, Inc.
CONTACT: Cathy Kruse of GeoResources, Inc.,
+1-701-572-2020, ext. 113
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