2010-03-12-2010-03-04-2010-03-04

JV to acquire 45% WI in 42,000 net acres in Williams County, ND, targeting the Bakken shale.

GeoResources Inc., Houston, (Nasdaq: GEOI) and Resolute Energy Corp., Denver, (NYSE: REN) report a joint project to develop acreage in the Bakken shale trend of North Dakota.

GeoResources has acquired approximately 61,000 gross (42,000 net) leasehold acres in Williams County, North Dakota. Resolute has entered into agreements with GeoResources to acquire a 45% interest in the acreage and GeoResources will retain a 45% interest and operations. It is expected that a third industry partner will participate for the remaining 10%.

The parties plan to drill at least three horizontal wells in the Middle Bakken formation prior to year-end and seek to acquire additional acreage in the area. The primary object is commercial production in the Middle Bakken formation, with Secondary objectives including the Three Forks, Madison and the Red River formations.

GeoResources chief executive and president Frank A. Lodzinski says, "We are very pleased to announce this joint venture with Resolute. We believe it will provide a meaningful addition to our ongoing Bakken and Three Forks projects, with attractive economic returns that continue to improve with the evolution of enhanced horizontal drilling and multiple-staged stimulation technologies. As demonstrated by our other drilling activities, we are confident that we can exploit our horizontal drilling and completion abilities in the Bakken."

Resolute chairman and chief executive Nicholas J. Sutton says, "This is a significant opportunity to advance our liquids-focused strategy in an area that has a great deal of promise. These high quality assets in North Dakota are oily, large, and are highly prospective. While the Bakken shale has been well known by oil companies for years, technological improvements have only recently unleashed its potential. With this transaction, we are well placed to take full advantage of what we believe is a meaningful opportunity to continue to add to our oil reserves in a relatively low-risk manner."

GeoResources has operations in the U.S. Southwest, Gulf Coast and the Williston Basin.

Resolute has oil and gas operations in Wyoming and North Dakota.