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Gas industry

GeoResources, Inc. Reports 26% Increase in Production and 11% Growth in Proved Oil Reserves

Strategic Insights

— 1 min read

GeoResources, Inc., a natural resources exploration and production company, announced its 1997 financial results, showcasing a significant increase in production and growth in proved oil reserves. The company's oil and gas operations produced 213,000 net equivalent barrels of oil or 584 BOE per day in 1997, a 26% increase over the 169,000 net equivalent barrels or 463 BOE per day produced in 1996. This growth can be attributed to the production contributed by horizontal wells drilled in recent years. The Oscar Fossum H3 (.67 net) horizontal well, which began production in December 1996, had the largest impact on production in 1997 compared to 1996.

Key Takeaways:

  • GeoResources, Inc. reported a 26% increase in production from 169,000 net equivalent barrels in 1996 to 213,000 net equivalent barrels in 1997.
  • The company's oil and gas operations produced 584 BOE per day in 1997, a 26% increase over the 463 BOE per day produced in 1996.
  • Total proved oil reserves increased 11% from 2,154,000 barrels at year-end 1996 to 2,387,000 barrels at year-end 1997.
  • The Oscar Fossum H3 (.67 net) horizontal well, which began production in December 1996, had the largest impact on production in 1997 compared to 1996.
  • Company President J.P. Vickers attributed the higher 1997 production volumes entirely to production contributed by horizontal wells drilled in recent years.
  • GeoResources, Inc. reported a net income of $766,000 or 19 cents per share on revenue of $4,190,000 in 1997.
  • The company's depreciation, depletion, and selling, general, and administrative expenses were not specified.

Statistics:

  • 1997 net income: $766,000
  • 1997 earnings per share: 19 cents
  • 1997 revenue: $4,190,000
  • 1996 net income: $734,000
  • 1996 earnings per share: 18 cents
  • 1996 revenue: $3,807,000
  • 1997 production: 213,000 net equivalent barrels
  • 1997 BOE per day: 584
  • 1996 production: 169,000 net equivalent barrels
  • 1996 BOE per day: 463
  • Increase in production: 26%
  • Increase in proved oil reserves: 11%
  • Total proved oil reserves at year-end 1996: 2,154,000 barrels
  • Total proved oil reserves at year-end 1997: 2,387,000 barrels

Sources:

  • GeoResources, Inc. (GEOI)
  • CO: GeoResources, Inc.
  • ST: Minnesota, North Dakota
  • IN: OIL
  • SU: ERN
  • JW-ES -- MNM016 -- 5591 03/30/98 10:00 EST http://www.prnewswire.com

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