2009-07-22-2009-05-29-2009-05-29

Acquired additional working interests in Giddings Field in TX.

GeoResources acquired undivided working interests in 68 producing wells, increasing working interests from 6.5% through 7.8% to approximately 34% to 37%. Estimated proved reserves of the acquired interests are 25 billion cubic feet equivalent (88% gas, 73% developed). Production is 10.6 million cubic feet and 85 barrels of liquids per day. GeoResources remains operator and general partner. In addition, the increase in the company's partnership sharing ratio from 2% to 30% adds approximately 13.2 billion cubic feet plus 5.6 million cubic feet and 45 barrels of liquids per day. The acquisition provides additional development opportunities and exposure to upside associated with the Eagle Ford shale and other prospective targets. The acquisition was funded with borrowings from the company's senior secured revolving credit facility. GeoResources hedged 1 billion cubic feet for the remaining six months of 2009 and 1.4 billion cubic feet for 2010 at $5.155 per Mcf. GeoResources chief executive Frank A. Lodzinski says, "Our acquisition in the Giddings Field coupled with our recently announced acquisition in the Williston Basin Bakken shale has provided the company an opportunity to increase its interests appreciably in two core operating areas. Further, the acquisitions provide immediate increases to proved reserves, production and cash flow, and significantly expand our drilling and development inventory." He adds that certain projects may be deferred in favor of drilling on the acquired acreage or additional attractive acquisitions of productive assets or acreage. "Much of our prior drilling inventory is held by production and, accordingly, we have been positioned to take advantage of attractive acquisition opportunities and modify our capital spending without fear of losing acreage." The effective date is May 1. GeoResources is focused in the Southwest, Gulf Coast and the Williston Basin.