2009-07-22-2009-05-20-2009-05-20

Bought 15% WI in 60,000 net acres, 59 producing wells in Bakken shale, Williston Basin, ND & MT, gaining 300,000 BOE PDP, 180 BOE/d.

Northern Oil & Gas Inc., Wayzata, Minn., (Amex: NOG) and privately held Lario Oil & Gas Co. were also participants in the acquisition. Northern also announced last week it has acquired assets from Windsor Bakken for $7.3 million in cash. The assets acquired by GeoResources include a 15% interest in approximately 60,000 net acres, and also 15% of varying working interests in 59 producing and productive wells. Net proved producing reserves are 300,000 barrels of oil equivalent. Net daily production is approximately 180 barrels of oil per day. Pro forma, GeoResources has working interests in the area from 10% to 15% in approximately 100,000 net acres. Of those total acres, approximately 59,000 net acres are in Mountrail County, with the remainder in adjacent North Dakota counties and in Richland County, Montana. The joint venture is presently running one drilling rig and plans to add two rigs in July and possibly a fourth drilling rig by first-quarter 2010. GeoResources expects to drill or participate in 45 to 50 wells over the next 18 months with an average net working interest of approximately 7%. Frank A. Lodzinski, GeoResources chief executive, says, "This acquisition allows the company to increase its interest appreciably in a core and exciting operating area. It adds immediate proved reserves and production and significantly expands our drilling and development inventory." GeoResources funded the deal with cash and debt. The effective date is April 1. GeoResources holds interests in the Southwest, Gulf Coast and the Williston Basin.