GeoResources Files To Raise Cash (GEOI)

GeoResources, Inc. (NASDAQ: GEOI) has filed to sell up to $100 million in a mixed securities shelf registration.  The company lists and combination of common stock, preferred stock, depositary shares, debt securities, warrants which may be sold to the public from time to time.

GeoResources is a Houston-based independent oil and gas company engagedin the acquisition and development of oil and gas reserves through purchases of reserves,re-engineering, development and exploration activities primarilyfocused in the Southwest and Gulf Coast, the Rocky Mountains and theWilliston Basin.

As a result of several related transactions the company underwent asubstantial change in ownership, management, assets and businessstrategy, all effective as of April 17, 2007.   On June 9, 2008, thecompany completed a private placement with non-affiliated accreditedinvestors for 1,533,334 shares of common stock at a price of $22.50 pershare and warrants exercisable for 613,336 shares of common stock at anexercise price of $32.43 per share.

The use of proceeds of the sale of securities is listed as thetraditional "for general corporate purposes" and includes acquisitionsof oil and gas properties, companies or prospects, repayment ofexisting indebtedness and for working capital.

Shares closed down 5.6% at $7.07 in regular trading, but it looks likeshares are actually up over 2% at $7.25 in after-hours trading.  As faras how $100 million compares to the current company, it looks like thecurrent market cap is almost $115 million.

Jon C. Ogg
November 25, 2008