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GeoResources and Resolute Energy Announce Project to Develop

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GeoResources and Resolute Energy Announce Project to Develop Bakken Oil Properties in Williams County, North Dakota


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Press Release Source: Resolute Energy Corporation & GeoResources, Inc. On Thursday March 4, 2010, 6:00 am EST

HOUSTON & DENVER--(BUSINESS WIRE)--GeoResources, Inc., (“GeoResources”) (NASDAQ:GEOI - News) and Resolute Energy Corporation (“Resolute”) (NYSE: REN - News) today announced a joint project to develop acreage in the Bakken Shale Trend of North Dakota, one of the fastest growing oil producing areas in the U.S.

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 presently plan to drill at least three horizontal wells in the Middle Bakken formation prior to year end, as well as seek to acquire additional acreage in the area. Recent activity in Williams County has confirmed commercial production in the Middle Bakken formation, which is a primary objective for the joint venture. Secondary objectives include the Three Forks, Madison and the Red River formations.

Frank A. Lodzinski, Chief Executive Officer and President of GeoResources commented, “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 In addition, the GeoResources and Resolute technical teams firmly believe the acreage position is prospective for drilling opportunities in other formations. We are very excited to work with Resolute, which has a highly experienced management and technical team and an impressive history of exploiting and developing oil and gas properties.”

Lodzinski continued, “We expect this project to contribute to GeoResources’ continued growth and to provide additional visibility and interest. In less than three years we have tripled our production and reserves and consistently expanded our acreage positions and drilling inventory.”

Nicholas J. Sutton, Chairman and CEO of Resolute commented, “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. We are looking forward to working with the GeoResources team, and believe that collectively we have the experience, technology and know-how to develop these assets into substantial production, both in the near-term and over the long run. As we communicated during our IPO last year, Resolute’s focus continues to be on domestic, onshore areas that are liquids-rich and that provide strong economic returns to our shareholders.”

About GeoResources, Inc.

GeoResources, Inc. is an independent oil and gas company engaged in the acquisition and development of oil and gas reserves through an active and diversified program which includes purchases of reserves, re-engineering, and development and exploration activities, currently focused in the Southwest, Gulf Coast, and the Williston Basin. For more information, visit our website at www.georesourcesinc.com.

About Resolute Energy Corporation

Resolute is an independent oil and gas company engaged in the acquisition, exploitation and development of oil and gas properties. The company operates producing properties in Utah, Wyoming and Oklahoma and owns exploration and development properties in Wyoming, North Dakota and Alabama. For more information, visit our website at www.resoluteenergy.com

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