Georesources (GEOI) 8-K Regulation FD Disclosure

GeoResources, Inc

Corporate Profile

June 2009

Exhibit 99.1

2

Forward-Looking Statements

Information

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,

costs

associated

with

hedging

activities

and

uncertainties

of

our

oil

and

gas

estimates

of

proved

reserves

and

reserve

potential,

which

may

be

substantial.

In

addition,

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,

2008

Annual

Report

on

Form

10-K/A

and

any

and

all

our

other

documents

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. 

(1)

Includes

GEOI’s

share

of

partnerships’

reserves.

(2)

Proved reserves presented throughout this profile are estimated as of 6/1/2009 and  based on NYMEX strip pricing at 5/22/09.

(3)

January –

April 2009 average, pro forma for May 2009 acquisitions.

(4)

Acreage information as of  6/1/09.  Maps herein exclude minor value properties.

3

Company Overview

Company Highlights

Direct

Direct

+

Ownership

Partnership

(1)

Proved Reserves (Bcfe)

(2)

126.7

140.6

Oil

53%

48%

Proved Producing

62%

62%

Proved Developed

76%

75%

Production (Mmcfepd)

(3)

29.6

35.6

Operated

82%

82%

Gross Acreage

(4)

483,324

483,324

Net Acreage

(4)

224,377

234,427

4

(1)

Proved

reserves,

as

shown

throughout

this

profile,

are

estimated

as

of

6/1/09

and

based

on

NYMEX

strip

pricing

at

5/22/09.

The

NYMEX

oil

strip

used

for

the

estimates

ranged

from

$61.67

per

Bbl

for

2009

to

$80.52

per

Bbl

for

years

2017

and

beyond.

The

NYMEX

gas

strip

ranged

from

$3.50

per

Mcf

for

2009

to

$7.67 per

Mcf

for years 2017 and beyond.

(2)

Partnership reserves do not include potential reversionary interests.

(3)

Represents non-proved reserve potential associated with existing fields or prospects that are scheduled and reasonably expected to be drilled with the Company’s

anticipated cash flows and current budget. Does not include certain projects with active leasing or other activities which may result in additional drilling locations.

Cautionary

Note:

The

Company

is

using

the

term

“non-proved

potential”

in

this

profile

to

provide

interested

parties

with

estimates

of

reserve

upside

associated

with

certain projects. See further information following in this profile. Such estimates are prepared by the Company, in accordance with reasonable industry practices.

However,

such

estimates

are

inherently

imprecise

and

subject

to

material

revisions.

As

of

June

2009,

the

SEC

did

not

permit

the

disclosure

of

any

non-proved  

reserve estimates in SEC filings. Accordingly, interested parties are urged to read the Company’s Annual Report on Form 10-K/A and its other SEC filings.     

Proved and Potential Reserves

Oil

Gas

Total

Corporate

Interests

MMBO

BCF

BCFE

PV 10 ($MM)

%

PDP

6.8

38.2

78.8

$218.5

62.2%

PDNP

1.9

5.7

17.1

63.4

13.5%

PUD

2.5

15.9

30.8

75.3

24.3%

Total

11.2

59.8

126.7

$357.2

100.0%

Oil

Gas

Total

Corporate

and

Partnership

Interests

(2)

MMBO

BCF

BCFE

PV-10 ($MM)

%

Proved

PDP

6.8

46.7

87.5

$242.6

62.3%

PDNP

1.9

6.8

18.4

65.5

13.0%

PUD

2.5

19.6

34.8

81.3

24.7%

Total Proved

11.2

73.1

140.7

$389.4

100.0%

Other

Non-Proved

Potential

(3)

7.9

14.3

61.7

Total

19.1

87.4

202.4

5

•

May 20, 2009: Closed acquisition in Bakken Shale trend of Williston Basin.

–

Acquisition made through existing joint venture -

net cash $10.4 million.

•

Acquired a 15% interest in 60,000 net acres plus interests in 59

wells.

•

Adds 486 MBoe of proved reserves and numerous drilling locations.

•

Adds 180 Boepd.

•

May 29, 2009: Closed acquisition in the Giddings Field, Texas.

–

Purchased from affiliated partnership –

net cash $48.4 million.

•

Increased working interest from approximately 7% to 36%.

•

68 producing wells plus undeveloped acreage.

•

Directly acquired 25 Bcfe of proved reserves (88% natural gas and 73%

developed).

•

Daily production 10.6 MMcf and 85 Bbls liquids.

•

Increased partnership share to 30% (equals to 13.2 Bcfe of proved reserves

and 5.7 MMcfepd).

Recent Acquisitions

6

Proved Reserves (Bcfe)

(2)

Production (MMcfe)

(3)

Undeveloped

24%

Producing

62%

Developed

Non-

Producing

14%

Reserves and production –

Direct interests

(1)

126.7

87.5

94.0

14.4

0

30

60

90

120

150

2006

2007

2008

6/1/2009

10,841

7,420

4,000

1,681

1,000

3,050

5,100

7,150

9,200

11,250

2006

2007

2008

Pro Forma

Proved Reserves –

126.7 Bcfe

(2)

(1)

Excludes partnership interests

(2)

2006 –

2008 proved reserves based on SEC prices.  Reserves as of 6/1/09 based on 5/22/09 NYMEX strip prices.

(3)

Based on January –

April 2009 annualized and pro forma reflecting the May 2009 acquisitions.

Gas

47%

Oil

53%

7

Proved Reserve Growth –

Direct Interests

(1)

Gas

Oil

1.7

10.7

8.8

11.2

0

3

6

9

12

15

2006

2007

2008

6/1/2009

4.2

29.8

34.7

59.8

0

14

28

42

56

70

2006

2007

2008

6/1/2009

Proved Reserves at 6/1/2009

126.7 Bcfe

(1) Excludes partnership interests.

Undeveloped

24%

Producing

62%

Developed

Non-

Producing

14%

Gas

47%

Oil

53%

8

Production Growth –

Direct Interests

Gas

Oil

184

392

743

746

0

200

400

600

800

1,000

2006

2007

2008

2009

(1)

4,460

2,962

1,648

577

0

1,200

2,400

3,600

4,800

6,000

2006

2007

2008

2009

(1)

Summary of acquisitions and divestitures:

–

April 2007: Reverse merger and Chandler

acquisition.

–

October

2007: $100.0 million acquisition primarily

in Louisiana

and Texas.

–

January 2008: $6.6 million sale –

Michigan.

–

February 2008: $7.9 million acquisition –

Williston

Basin.

–

February 2008: $1.8 million sale –

Louisiana.

–

May 2008: $11.8 million sale –

seven fields,

Louisiana and Texas.

–

May 2008: Participation in the $61.7 million

formation of OKLA Energy Partners LP.

–

September 2008: $3.6 million acquisition –

Oklahoma.

–

2008 acquisitions and divestitures, high-g raded

portfolio and expanded drilling inventory.

–

January 2009: $1.6 million sale –

Louisiana.

–

May 2009: $10.4 million acquisition –

Williston

Basin.

–

May 2009: $48.4 million acquisition –

Giddings

Field, Texas.

–

2009 acquisitions expand in core areas, high-

graded portfolio and expands drilling inventory.

(1)

Excludes partnership interests.  Based on PDP volumes and includes acquisitions closed in May (effective 6/1/09).

9

Partnership Operations

SBE Partners LP

Catena Oil & Gas, LLC

OKLA Energy Partners LP

2% GP Interest

30% GP Interest

GeoResources owns a direct working interest in 

partnerships’

properties,

serves

as

general

partner

and operates the majority of the properties.

Catena Oil & Gas, LLC.

Wholly owned subsidiary.

30% interest in SBE partners earned in

connection with May 2009 acquisition.

2% General Partner interest in Okla Energy  

potentially increases to 35.7% reversionary

interest.

14.0 Bcfe excluding reversionary interest.

Partnerships generate fees, net income and

cash

distributions

estimated

(using

current

price

forecasts) for 2009 as follows:

Management fees $1.1 million

Partnership net income $2.6 million

Partnership distributions $4.4 million

Partnership Interests

10

Daily Production

June 2009

14.0 Bcfe

5.6 MMcfd

30 Bbls

NGL

15 Bbls

Oil

Financial Summary

11

Selected Balance Sheet Data

(1)

Adjusted for acquisitions closed in May, 2009.

(2)

The above table does not include the balance sheet effects of hedge accounting for derivative financial instruments which is required for financial statements

presented in accordance with generally accepted accounting principles. See the Company’s SEC filings for further information.

($ in millions)

Adjusted

(1)

March

31,

2009

Dec.

31,

2008

Dec.

31,

2007

Cash

7.1

$                

14.0

$             

24.4

$             

Working Capital -

Net

6.5

$                

5.3

$                

13.9

$             

Oil

&

Gas

Assets

(Successful

Efforts)

(1)

240.3

$           

181.6

$           

181.4

$           

Equity in Partnerships

3.1

$                

3.3

$                

1.8

$                

Long-Term

Debt

(1)

98.0

$             

40.0

$             

96.0

$             

Common

Stock

and

Additional

Paid

in

Capital

(2)

113.0

$           

112.7

$           

79.8

$             

Retained Earnings

(2)

21.5

$             

21.0

$             

7.5

$                

Common Stock Outstanding

16.2

Financial Summary

12

Operating  Data

(1)

Includes acquisitions effective June 1, 2009.  Based on the NYMEX strip as of 5/22/09 and Company hedges existing during the year.  Does not include

additional production from drilling programs.  Subject to significant change.  See the Company’s SEC filings for further information.

(2)

EBITDAX is defined as earnings before interest, income taxes, depreciation, depletion and amortization, impairments and exploration expense.  EBITDAX should

not be considered as an alternative to net income or cash flow as indications of performance or liquidity. See the Company’s SEC filings for further information.

($ in millions, except per share data and unit metrics)

Projected

(1)

12/31/09

QTD 03/31/09

2008

2007

Key Data:

Avg. realized oil price ($/Bbl)

61.60

$             

54.00

$           

82.42

$           

67.20

$           

Avg. realized natural gas price ($/mcf)

4.44

$               

4.12

$              

8.12

$              

6.19

$              

Oil production (MBbls)

746

177

743

392

Natural gas production (MMcf)

4,460

665

2,962

1,648

Total Production (MBoe)

1,489

288

1,237

667

Total revenue

73.0

$               

14.6

$              

94.6

$              

40.1

$              

Net income before tax

5.7

$                  

0.8

$                 

21.3

$              

8.0

$                 

Net income

3.5

$                  

0.5

$                 

13.5

$              

3.1

$                 

Net income per share (basic)

0.21

$               

0.03

$              

0.87

$              

0.25

$              

EBITDAX

(2)

36.2

$               

6.2

$                 

53.0

$              

17.5

$              

EBITDAX per share (basic)

(2)

2.23

$               

0.38

$              

3.40

$              

1.42

$              

13

Net Asset Value

Net Asset Value

(1)

At March 31, 2009, excludes derivative financial instruments.

(2)

Company estimate.

(3)

At June 1, 2009.

($ in millions)

Total w/Partnerships

PV-10

% of Total

PV-10

% of Total

Proved Reserves:

Proved Developed Producing

$218.5

61.2%

$242.6

62.3%

Proved Developed Non-Producing

63.4

17.7%

65.5

16.8%

Proved Undeveloped

75.3

21.1%

81.3

20.9%

Total Proved PV-10 Value

$357.2

100.0%

$389.4

100.0%

Plus:

Working

Capital

(1)

6.5

6.5

Acreage

and

Other

(2)

9.4

9.4

Less:

LTD

(3)

(98.0)

(98.0)

Total

$275.1

$307.3

Shares Outstanding

(Thousands)

16,241

16,241

Net Asset Value Per Share

$16.98

$18.97

Direct Ownership

_________________________________________________________________________________________________________

14

(1)

EBITDAX is defined as earnings before interest, income taxes, depreciation, depletion and amortization, impairments and exploration expense.  EBITDAX should not

be considered as an alternative to net income or cash flow as indications of performance or liquidity. See the Company’s SEC filings for further information.

(2)

Adjusted for May 2009 acquisitions.

1.5x

0.9x

0.8x

3.0x

0.0x

1.2x

2.4x

3.6x

4.8x

6.0x

2007

2008

LTM

3/31/09

PF LTM

EBITDAX

(1)

Total Leverage

($ in millions)

•

Clear track record of EBITDAX growth.

•

Conservative use of leverage to maintain strong balance sheet.

–

As of March 31, 2009, pro forma for the Austin Chalk and Bakken

acquisitions, the Company’s total debt to pro forma Last Twelve Months

(“LTM”)  EBITDAX is 1.5x.

Strong Financial Position

15

Hedging Strategy

Oil Hedges

•

GEOI employs an active commodity price risk management program in

order to execute its business plan throughout commodity price cycles.

•

2009 –

2010 natural gas hedges include hedge volumes intended to cover

GEOI’s share of partnership production.  Hedged volumes shown below are

about 68% of combined production volumes. 

0%

20%

40%

60%

80%

100%

2009

2010

2011

$76.00

$74.37

$74.71

$43.85

$43.85

0%

20%

40%

60%

80%

100%

2009

2010

2011

$5.08

$5.12

$7.00 - $10.75

$7.00 - $9.90

$7.00 - $9.20

Natural Gas Hedges

Swap

Fixed Contract

Swap

Collar

16

Management History

1983-April 2007

GeoResources, Inc.

Areas of Operation:

Williston Basin

2004-

2007

Southern Bay Energy, LLC

Areas of Operation:

Gulf Coast, Permian Basin

2000-2007

Chandler Energy, LLC

Areas of Operation:

Williston Basin, Rockies

1988-2000

Chandler Company

Areas of Operation:

Rockies, Williston Basin

1992-1996

Hampton Resources

Corporation

Areas of Operation:

Gulf Coast

1997-2001

Texoil Inc.

Areas of Operation:

Gulf Coast, Permian Basin

2001-2004

AROC Inc.

Areas of Operation:

Gulf Coast, Permian Basin,

Mid-Continent

•

Significant operations and financial

experience.

•

Management’s historic areas of operation

have been focused on GeoResources’

core areas.

•

Extensive industry relationships.

•

Prior track record includes:

17

Balanced Growth Strategy

Asset

Rationalization

•

Selectively divest assets to upgrade our portfolio and focus on

existing fields and new projects with greater development and

exploitation potential.

•

Implement re-engineering and development programs within existing

fields.

Cost Control

•

Target low operating costs and G&A structure.

•

Modest overhead structure.

•

Generate additional exploration projects and increase direct

participation.

•

Solicit partners on a promoted basis to reduce average costs,

diversify and realize operating income.

Exploration

•

Acquire oil and gas properties with significant producing reserves and

development and exploration potential.

•

Solicit partners in acquisitions on a promoted basis, to diversify,

reduce average costs, and generate operating fees.

Acquisitions

18

Acquisition Strategy

Acquire

producing

fields or

undeveloped

acreage

Acquire

corporate

entities

Develop

drilling

programs

Promote in

partners

Retain field

operating

control

Accelerate

field

development

Use price

hedging

Regional Overview

20

Southern Region

TX

NM

LA

Loco Hills

Maljamar

Harris

M.A.K.

Warwink

Wheeler

Chittim Ranch

Giddings*

*SBE Partners LP properties

Odem

Driscoll

Oak Hill

Golden

Meadow

Quarantine

Bay

Eloi Bay

St. Martinville

Frisco

OK

OKLA Energy Partners

LP properties

•

Accounts

for

73%

of

reserves

and

approximately

83% of total production.

–

High-impact exploration potential.

–

Development and recompletion potential.

•

Continuous successful Austin Chalk drilling

program.

–

Significant working interests plus partnership interests.

–

Twelve wells drilled with 100% success rate.

–

68 producing wells.

–

One well currently drilling.

–

6-8 wells expected to be drilled n 2009 and in 2010.

–

Recent additional acreage acquisitions.

–

May deploy additional rig with cost reductions.

–

Yegua and Eagleford Shale potential.

•

Two 3D seismic projects in progress.

21

Northern Region

ALBERTA

MANITOBA

SASKATCHEWAN

MT

SD

ND

Newporte

Sherman/Wayne

Landa

Starbuck

Comertown

Fairview/Mondak

Sioux Pass

Four Mile Creek

Patent Gate

Flat Top

Note: Highlighted area represents the Williston Basin.  

Bakken JV

•

Accounts for 27% of reserves and approximately 17%

of total production.

•

North Dakota shallow:

–

Starbuck waterflood initial installation early 2008, phase

two finished in early 2009.

•

Initial response realized.

–

SW Starbuck waterflood installation completed early

2009.

–

N.E. Landa expected to be unitized for waterflood.

–

Drilled two operated horizontal infill locations in 2008.

–

Additional horizontal infill locations.

•

North Dakota Bakken:

–

Recent acquisition of interests in approximately 62,000

net acres.

–

Joint venture with 10-15% working interest in

approximately 100,000 net acres.

–

Current one rig program, expected to increase to four rigs

by 1st quarter 2010.

–

16 joint venture operated wells drilled.

–

Acquired and/or participates in 122 non-operated wells.

–

Joint venture expects to drill or participate in 45-50 wells

in the next 18 months.

22

•

Planned

projects

are

diversified

across

GeoResources’

core

areas.

•

Budget to remain within cash flow.

•

Minimum $35 million in next 12 months.

•

Budget allocation favors low-risk, high cash flow projects.

•

Revised budgets expected mid-summer reflecting recent acquisitions.

–

Combination of gas and oil projects.

–

Combination of development of proved and probable reserves and exploration.

Southern Region Capital Expenditures

Northern Region Capital Expenditures

$50 million total

$61 million total

Planned Exploration &

Development Projects (2009 –

2011)

Re-engineering

and Workover

6%

Exploratory

Drilling

15%

Austin Chalk

Drilling and

Development

44%

Other

Development

Drilling

24%

Expansion

2%

Acreage,

Seismic and

Other

9%

Associate

Drilling

5%

Acreage,

Seismic and

Other

6%

Re-engineering

and Workover

2%

Other

Development

Drilling

24%

Bakken

Shale

Drilling

41%

Horizontal

Development

Drilling

22%

aterflood and

W

aterflood

W

23

Selected Upside Projects

Reserve Potential

Gas

24.8%

Oil

75.2%

Reserve Potential

(1)

Estimated

participation

in

100

wells

pending

continued

favorable

drilling

results.

Does

not

include

in-fill

drilling

or

Three

Forks

/

Sanish

horizontal

potential.

(2)

Does not include Pearsall Shale.

(3)

Does

not

include

Yegua

or

Eagleford

Shale

potential

or

proved

undeveloped

reserves.

(4)

Includes net interest in 6 non-proved locations.

(5)

Represents Company estimated base case for one prospect area.  Excludes other prospective

areas and deep potential below 16,000 feet.

(6)

Includes one proved and three non-proved locations.  Third seismic shoot may alter non-proved 

sub-surface locations and is expected to result in additional locations.

(7)

Engineering estimates for a successful flood range from 1.4 to 2.3 MMBO.

Bakken

24.4%

North Dakota

29.2%

Louisiana

26.6%

Texas

17.2%

Oklahoma

2.5%

Oil

Gas

Total

Field

State

Mmbo

Bcf

Bcfe

Bakken

Shale

(1)

ND,MT

2.3

1.0

14.8

Chittim

(2)

TX

-

1.1

1.1

Giddings

(3)

TX

-

8.3

8.4

Mak

TX

0.2

-

1.2

Northeast Landa

ND

0.4

-

2.4

Oklahoma

(various

net)

(4)

OK

-

1.5

1.5

Quarantine

Bay

(5)

LA

1.4

2.3

10.7

Roth/Leonard

ND

0.3

-

1.8

Sherman/Wayne

ND

0.7

-

4.2

St. Martinville

(6)

LA

1.0

-

6.0

SW Starbuck

ND

0.2

-

1.2

Starbuck

Waterflood

Unit

(7)

ND

1.4

-

8.4

Non-Proved Potential

7.9

14.3

61.7

________________________________________________________________________________

24

Bakken Shale –

East Nesson

Bakken Shale

Note:  Yellow-highlighted areas represent the Company’s acreage position.

•

Joint venture with varying working

interests ranging from 10% to 15% in

approximately 100,000 net acres.

•

Allows the Company to amass a

significant database and understanding of

the technical and operational aspects.

•

16 horizontal Bakken Shale wells drilled

and in process of completing. Joint

venture expects to drill 45-50 wells in the

next 18 months.

(1)

•

Initial gross production rates range from

400 to 1,400 Bopd per well.

(1) Well counts exclude numerous wells with nominal interests.

25

Giddings Field

Austin Chalk Play

•

Approximately 67,000 acres.

•

Producing properties and acreage in the

Austin Chalk Formation.

–

GEOI owns an average direct working

interest of ~ 37%.

–

Partnership owns ~ 53%.

–

GEOI owns a 30% general partner interest.

•

Twelve

wells

drilled

–

100%

success.

•

Additional upside includes:

–

Multiple wells with rate increase potential

from slick water fracture stimulations.

–

At least 14 additional locations.

–

Yegua and Eagleford

Shale potential.

Quarantine Bay

Quarantine Bay Field

LA

New

Orleans

Black Bay

Breton Sound

Eloi

Bay

Lake Salvador

Lake Borgne

Lake Ponchartrain

Quarantine Bay

Violet

Westwego

Belle Chasse

Braithwaite

Pointe A La Hache

Port Sulphur

Quarantine Bay

Oil & Gas Field

New

Orleans

Black Bay

Breton Sound

Eloi

Bay

Lake Salvador

Lake Borgne

Lake Ponchartrain

Quarantine Bay

Violet

Westwego

Belle Chasse

Braithwaite

Pointe A La Hache

Port Sulphur

Quarantine Bay

Oil & Gas Field

•

GeoResources has a 7% working interest above

10,500 feet and a 33% working interest below

10,500 feet, in approximately 14,000 acres.

•

Cumulative Production = 180 Million Bbls and

285 BCF

•

Shallow zone potential (<10,500 ft):

–

Numerous behind pipe opportunities due to

multiple stacked sand reservoirs.

–

Rate acceleration wells.

•

Pending prices and drilling cost

reductions.

•

Significant deep potential (>10,500 ft): 

–

Schlumberger reprocessed and interpreted

the 3-D seismic data.

–

Initial prospect.

•

Multiple objectives to 16,000 ft.

26

27

Sherman & Wayne Fields

Sherman & Wayne Fields

ND

HAAS

North Dakota

LANDA NE

LEONARD

ZION

LANDA

ROTH N

ROTH

SHERMAN

WAYNE

STARBUCK

CANADA

Bottineau County

T163N

T162N

T161N

R79W

R81W

R80W

R82W

R83W

HAAS

North Dakota

LANDA NE

LEONARD

ZION

LANDA

ROTH N

ROTH

SHERMAN

WAYNE

STARBUCK

CANADA

Bottineau County

T163N

T162N

T161N

R79W

R81W

R80W

R82W

R83W

•

GeoResources holds 1,090 gross and 967

net acres and operates the fields.

•

Average working interest of 76% and an

average net revenue interest of 64%.

•

Proved upside in this field consists of four

proved undeveloped horizontal infill

locations.

•

Two successful development wells drilled

in 2008.

28

Starbuck Waterflood Unit 

Starbuck Unit

ND

HAAS

North Dakota

LANDA NE

LEONARD

ZION

LANDA

ROTH N

ROTH

SHERMAN

WAYNE

STARBUCK

CANADA

Bottineau County

T163N

T162N

T161N

R79W

R81W

R80W

R82W

R83W

HAAS

North Dakota

LANDA NE

LEONARD

ZION

LANDA

ROTH N

ROTH

SHERMAN

WAYNE

STARBUCK

CANADA

Bottineau County

T163N

T162N

T161N

R79W

R81W

R80W

R82W

R83W

•

Unitized effective November 1, 2007 and

includes over 6,000 acres.

–

95.8% working interest.

•

Phase One waterflood installation

completed early 2008.

–

Recent initial response.

–

Phase Two waterflood expansion

substantially completed.  

•

The Starbuck Midale Zone has produced

584 MBO and the Berentson Zone has

produced 754 MBO on primary recovery,

for total field production of 1.4 MMBO.

•

The Company estimates additional

reserves of 1.4 –

2.3 MMBO.

29

Key Investment Highlights

Strong Growth with High Level of Operating Control

Strategically Located, Geographically Diverse Asset Base

Active Hedging Program

Experienced Management and Technical Staff

Developing Additional Prospects

Continued Value Creation

Significant Identified Upside Potential

Strong Financial Position