June 3, 2009 (FinancialWire) — GeoResources, Inc., (NASDAQ: GEOI) (Current Market Cap: US$155.43 Mil.) said it has closed the acquisition of undivided working interests in 68 producing wells located in the Giddings Field, Texas, from an affiliated partnership.

In addition, the company will immediately increase its sharing ratio in the partnership from 2% to 30%. GeoResources is the operator of the subject wells and the general partner of the affiliated partnership. Prior to the acquisition, GeoResources had direct working interests in the properties ranging from about 6.5% to 7.8%.

After the acquisition, GeoResources claimed that its direct working interests in the producing wells will range from around 34% to 37%. The acquired direct working interests total an estimated 25 Bcfe of proved reserves, 88% natural gas and 73% developed, with daily production currently totaling 10,625 Mcf and 85 Bbls of associated liquids.

The acquisition was funded with borrowings from the company’s senior secured revolving credit facility. Borrowings for this acquisition and the company’s recently launched acquisition in the Williston Basin totaled $58 million.

Beginning July 1, the company entered into new commodity price hedges for 2009 and 2010. The quantities hedged are 1,080 Mmcf for the remaining six months of 2009 and 1,440 Mmcf for the calendar year 2010, both at a price of $5.155 per Mcf.

Houston-based 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.

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