Georesources Inc (GEOI)

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Press Release Source: GeoResources, Inc.

GeoResources, Inc. Reports Second Quarter and Six-Months Financial Results
Monday August 11, 10:26 am ET

HOUSTON--(BUSINESS WIRE)--GeoResources, Inc., (NASDAQ:GEOI - News), today announced its financial results for the first six-months and the quarter ended June 30, 2008, compared to the results for the same periods in 2007.


For the three months ended June 30, 2008, the Company reported net income of $7.8 million, or $0.50 per share (diluted) compared to a net loss of $1.3 million or $0.09 per share in 2007. Total revenue increased 240% to $28.2 million in the second quarter of 2008 compared to $8.3 million the same quarter in 2007.

For the first half of 2008, net income was $12.0 million, or $0.80 per share, on revenue of $52.2 million versus a net loss of $463,000, or $0.05 per share on revenue of $12.4 in the first half of 2007.

Oil and natural gas production increased substantially in the second quarter. Natural gas production increased to 719 MMcf from 361 MMcf, an increase of 99%. Oil production for the second quarter increased to 186 MBbls from 82 MBbls in the prior year’s period, an increase of 127%.

For the six months ended June 30, 2008, natural gas sales totaled 1,528 MMcf or 177% greater than the 552 MMcf sold during the first half of 2007. Oil sales for the first half of 2008 increased 204% to 386 Mbbls from 127 Mbbls in the first half of 2007.

The average realized price of natural gas was $9.74 per Mcf for the second quarter of 2008, 41% more than the second quarter of 2007. The average realized price of oil for the second quarter of 2008 was $97.66 per barrel or 75% more than the second quarter in the prior year.

The average realized price of natural gas was $8.68 per Mcf for the first half of 2008 or 31% more than the first half of the prior year. The average realized price of oil was $89.01 per barrel or 63% more for the first half of 2008 than the first six months in the prior year.

Earnings before interest, income taxes, depreciation, depletion and amortization, and exploration expense (“EBITDAX”) increased 581% to approximately $17.7 million for the second quarter 2008 compared to $2.6 million in the second quarter 2007. EBITDAX for the first six-months of 2008 increased 552% to approximately $30.0 million compared to $4.6 million in prior year’s first half.

The following tables reconcile reported net income to EBITDAX for the periods indicated (in thousands):

Three Months Ended June 30,
2008 2007


Net income (loss) $ 7,790 $ (1,349 )
Add back:
Interest expense 1,314 199
Income tax 4,546 1,849
Depreciation, depletion and amortization 3,573 1,932
Exploration and impairments 502 -

EBITDAX (1) $ 17,725 $ 2,631





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