GeoResources and Resolute Energy Corporation 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."
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