GeoResources, Inc. Corporate Profile IPAA Oil & Gas Investment Symposium New York April 11-13, 2011
Corporate Highlights Significant Bakken and Eagle Ford Upside Strategically located in high rate of return liquids-rich resource plays High level of operating control Significant Bakken Exposure 32,500 net operated acres 12,500…
Company Overview Bakken Independent oil and natural gas 45,000 net acres company focused in the Southwest, Gulf Coast and Williston Basin Significant upside potential through growing positions in liquids-rich shales: Eagle Ford…
Reserves and Production Current Proved Reserves 24.0 MMBOE (1) Proved Reserves (MMBOE)(2) Average Daily Production (BOE/d) (BOEpd) (3) (1) As of January 1, 2011. Excludes partnership interests. (2) 2006 2010 proved…
GeoResources Asset Overview Oil Weighted Development 6
Bakken Shale Overview 45,000 net acres in the Bakken Bakken Operated Project 25,000 net acres in Williams County, ND Retained 47.5% WI and operations Drilling started in September 2010 Interests in 100 spacing units (1,280 acres)…
Bakken Shale - Operated 25,000 net acres with 47.5% WI and operations in Williams Co., ND Interests in 100 spacing units First well, Carlson 1-11H on production - IP of 685 BO/d Estimated cost of 5.6 MM 640 acre unit, short…
Bakken Shale - Activity Carlson 1-11H Anderson 1-24-13H IP: 685 Bo/d Fraced in March 2011 (640 ac. unit - short lateral) Siirtola 1-28-33H NFX: Christensen 159-102-17- IP: 840 Bo/d, 480 MCF/d 20-1H Waiting on Compl. Results OAS:…
Bakken Shale - Non-operated Partnered with experienced operator - Slawson Exploration 11,000 net acres with working interests ranging from 10% to 18% Slawson has five rigs running currently and has drilled over 85 wells; 100%…
Eagle Ford Shale Eagle Ford acreage has increased to 23,000 net acres Eagle Ford AMI Southwest Fayette County Ramshorn Investments, Inc., an affiliate of Nabors Industries, Ltd. purchased a 50% interest o Upfront cash payment o…
Eagle Ford Shale Volatile oil / gas condensate window On strike with operator activity in Gonzales County Spudded first well in Fayette County, Flatonia East Unit 1-H, on January 10, 2011 Drilling second well in Fayette County,…
Development Economics Development Economics(2) Bakken Shale (Williams Co., North Dakota) Eagle Ford Shale (Fayette Co., Texas) 350 MBO EUR 500 MBO EUR 700 MBO EUR 350 MBOE EUR 500 MBOE EUR Well Assumptions Drill & Completion cost…
Additional Assets
Giddings Field Austin Chalk Bell Robertson Madison 29,000 net acres Giddings Field Acreage 16 wells drilled 100% success Milam 20 additional drilling locations Walk WI ranges from 37% - 53% Operating control Brazos Williamson…
Louisiana - St. Martinville & Quarantine Bay St. Martinville Field 1 2,585 net acres of HBP or leased (yellow), 1 1 1 1 1 131 132 133 1 2 1 1 1 534 net acres of owned minerals (green) 2 136 1…
Financial Overview
Development Program Capital Allocations 2011 Capital Budget ( in millions) Budget recently increased to take advantage of leasing success and strong project Project Budgeted Comments inventory 2011 budget increased from 88 MM to…
Strong Financial Position Can fund current CapEx with cash flow and debt capacity Conservative use of leverage to maintain strong balance sheet 145 MM borrowing base 2010 EBITDAX(1) = 69.1 MM Total debt of 87.0 MM as of December 31,…
Investment Highlights Significant upside through Bakken and Eagle Ford shale positions Bakken Shale - 45,000 net acres Eagle Ford Shale - 23,000 net acres Ongoing leasing program to further expand acreage Solid proved reserve and…
Appendix
Management History Track record of profitability and liquidity Extensive industry and financial relationships Significant technical and financial experience Long-term repeat shareholders Cohesive management and technical staff Team…
Proved Reserves Proved Reserves SEC Pricing at 1/1/11 ( in millions) Oil Gas Total % of Corporate Interests MMBO BCF MMBOE Total PV-10 (1) PDP 8.9 33.0 14.4 60.0% 239.6 PDNP 2.3 6.1 3.4 14.2% 68.5 PUD 3.2 18.4 6.2 25.8% 70.2 Total…
Hedge Portfolio GEOI uses commodity price risk management in order to execute its business plan throughout commodity price cycles Oil Hedges Natural Gas Hedges Swaps Collar Swaps Collar 1,000 3,000 900 2,500 800 700 2,000…
Operating Performance Historical Operating Data 2010 2009 2008 Key Data: Average realized oil price (/Bbl) 70.33 61.09 82.42 Avg. realized natural gas price (/Mcf) 5.30 3.97 8.12 Oil production (MBbl) 1,060 851 743 Natural gas…
Reconciliation of non-GAAP Measure Years Ended December 31, ( in millions) 2010 2009 2008 Net income 23.3 9.8 13.5 Add back: Interest expense 4.7 5.0 4.8 Income taxes 11.9 5.1 7.8 Depreciation, depletion and amortization 24.7…
Standardized Measure SEC PV-10 Reconciliation to Standardized Measure(1) ( in millions) 1/1/2011 Direct interest in oil and gas reserves: Present value of estimated future net revenues (PV-10%) 378.3 Future income taxes at 10%…
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