HOUSTON--(BUSINESS WIRE)--GeoResources, Inc., (NASDAQ: GEOI), today announced that it increased the size of its previously announced public offering from 4,700,000 shares to 5,360,000 shares, of which 4,500,000 shares will be sold by GeoResources and 860,000 shares will be sold by certain selling shareholders, at a public offering price of $25.00 per share (before underwriting discounts and commissions). GeoResources and the selling shareholders have granted the underwriters a 30-day option to purchase up to an additional 804,000 shares of common stock on a pro-rata basis.
Closing of the offering is expected to occur on or about January 19, 2011, subject to customary closing conditions. GeoResources expects to utilize approximately $87.0 million of the net proceeds it receives from the offering to immediately repay the $87.0 million outstanding balance under its credit agreement. GeoResources expects to use its remaining net proceeds from the offering along with its cash flow and credit facility availability, primarily to fund its drilling and development expenditures on its acreage in the Bakken Trend in North Dakota and Montana, and its acreage in the Eagle Ford Trend in Texas, and for incremental leasehold acquisitions and general corporate purposes.
Wells Fargo Securities is acting as Sole Book-Running Manager for the common stock offering. C. K. Cooper & Company, Rodman & Renshaw, LLC, Johnson Rice & Company L.L.C., Madison Williams, BMO Capital Markets and Global Hunter Securities are serving as co-managers for the common stock offering. When available, a copy of the final prospectus supplement and related base prospectuses for the offering may be obtained on the SEC’s website at http://www.sec.gov or by contacting Wells Fargo Securities, Attn: Equity Syndicate Department, 375 Park Avenue, New York, New York 10152, Email: cmclientsupport@wellsfargo.com, Telephone: 1.800.326.5897.
This press release is neither an offer to sell nor a solicitation of an offer to buy any of the securities referred to above. An offering of any such securities will be made only by means of a prospectus supplement to the base prospectuses contained in GeoResources’ registration statements on Form S-3. Any such prospectus shall not constitute an offer to sell or the solicitation of an offer to buy, nor shall there be any sale of any such securities in any state or jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state or jurisdiction.
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 that includes the acquisition, drilling and development of undeveloped leases, purchases of reserves, exploration and re-engineering activities, currently focused in the Southwest, Gulf Coast and the Williston Basin. For more information, visit our website at www.georesourcesinc.com.
Forward-Looking Statements
Information included herein contains forward-looking statements that involve significant risks and uncertainties, including our need to replace production and acquire or develop additional oil and gas reserves, intense competition in the oil and gas industry, our dependence on our management, volatile oil and gas prices and costs, uncertain effects of hedging activities and uncertainties of our oil and gas estimates of proved reserves and reserve potential, all of which may be substantial. In addition, past performance is no guarantee of future performance and results. All statements or estimates made by the Company, other than statements of historical fact, related to matters that may or will occur in the future are forward-looking statements. Readers are encouraged to read our December 31, 2009 Annual Report on Form 10-K and Form 10-K/A and our other documents subsequently filed with the SEC regarding information about GeoResources for meaningful cautionary language in respect of the forward-looking statements herein. Interested persons are able to obtain free copies of filings containing information about GeoResources, without charge, at the SEC’s internet site (http://www.sec.gov). There is no duty to update the statements herein.