UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
FORM 10-QSB
(X) Quarterly Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the quarterly period ended March 31, 2003.
( ) Transition Report Pursuant to Section 13 or 15(d) of the Securities
Exchange Act of 1934
For the transition period from __________ to __________.
Commission File Number 0-8041
GeoResources, Inc.
(Exact name of small business issuer as specified in its charter)
Colorado 84-0505444
(State or other jurisdiction of (I.R.S. Employer Identification No.)
incorporation or organization)
1407 West Dakota Parkway, Suite 1-B, Williston, ND 58801
(Address of principal executive offices)
Issuer's telephone number: (701) 572-2020
-----------------------------------------
CHECK WHETHER THE ISSUER (1) HAS FILED ALL REPORTS REQUIRED TO BE FILED BY
SECTION 13 OR 15(d) OF THE EXCHANGE ACT DURING THE PAST 12 MONTHS (OR FOR
SUCH SHORTER PERIOD THAT THE REGISTRANT WAS REQUIRED TO FILE SUCH REPORTS),
AND (2) HAS BEEN SUBJECT TO SUCH FILING REQUIREMENTS FOR THE PAST 90 DAYS.
YES (X) NO ( ).
-----------------------------------------
State the number of shares outstanding of each of the issuer's classes of
common stock, as of the latest practicable date.
Class Outstanding at May 13, 2003
Common Stock, par value $.01 per share 3,746,327 shares
Transitional Small Business Disclosure Format (check one): YES ( ) NO (X).
-------------------------------------------------------------
GEORESOURCES, INC.
INDEX
PAGE
NUMBER
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements
Consolidated Balance Sheets 3
(March 31, 2003 and December 31, 2002)
Consolidated Statements of Operations 4
(Three months ended March 31, 2003 and 2002)
Consolidated Statements of Cash Flows 5
(Three months ended March 31, 2003 and 2002)
Notes to Consolidated Financial Statements 6
Item 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations 8
Item 3. Controls and Procedures 10
PART II. OTHER INFORMATION 10
PART I. FINANCIAL INFORMATION
ITEM 1. Financial Statements
GEORESOURCES, INC., AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Unaudited)
March 31, December 31,
2003 2002
------------ ------------
ASSETS
CURRENT ASSETS:
Cash and equivalents $ 356,157 $ 329,302
Trade receivables, net 788,008 821,459
Inventories 230,091 207,998
Income tax receivable 50,192 50,192
Prepaid expenses 34,782 28,326
------------ ------------
Total current assets 1,459,230 1,437,277
------------ ------------
PROPERTY, PLANT AND EQUIPMENT, at cost:
Oil and gas properties, using the
full cost method of accounting:
Properties being amortized 23,466,998 22,636,316
Properties not subject to amortization 262,758 251,714
Drilling rig and equipment 1,100,521 1,077,551
Leonardite plant and equipment 3,262,694 3,262,200
Other 756,931 757,431
------------ ------------
28,849,902 27,985,212
Less accumulated depreciation, depletion
amortization and impairment (19,717,978) (20,386,789)
------------ ------------
Net property, plant and equipment 9,131,924 7,598,423
------------ ------------
OTHER ASSETS 10,625 12,500
------------ ------------
TOTAL ASSETS $ 10,601,779 $ 9,048,200
============ ============
LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 584,547 $ 659,282
Accrued expenses 299,967 335,219
Current maturities of long-term debt 131,450 132,260
------------ ------------
Total current liabilities 1,015,964 1,126,761
LONG-TERM DEBT, less current maturities 1,878,978 1,910,228
ASSET RETIREMENT OBLIGATION 1,608,000 --
DEFERRED INCOME TAXES 358,000 395,000
------------ ------------
Total liabilities 4,860,942 3,431,989
------------ ------------
STOCKHOLDERS' EQUITY:
Common stock, par value $.01 per share;
authorized 10,000,000 shares;
issued and outstanding 3,763,227
and 3,787,477 shares, respectively 37,632 37,875
Additional paid-in capital 346,962 384,185
Retained earnings 5,356,243 5,194,151
------------ ------------
Total stockholders' equity 5,740,837 5,616,211
------------ ------------
TOTAL LIABILITIES AND STOCKHOLDERS' EQUITY $ 10,601,779 $ 9,048,200
============ ============
See Notes to Consolidated Financial Statements.
GEORESOURCES, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Unaudited)
Three Months Ended
March 31,
2003 2002
------------ ------------
OPERATING REVENUES:
Oil and gas sales $ 920,574 $ 552,265
Leonardite sales 156,394 91,550
Drilling revenue -- 95,484
------------ ------------
1,076,968 739,299
------------ ------------
OPERATING COSTS AND EXPENSES:
Oil and gas production 445,112 387,160
Cost of leonardite sold 169,150 126,238
Drilling costs -- 57,989
Depreciation and depletion 160,189 207,159
Selling, general and administrative 133,872 120,419
------------ ------------
908,323 898,965
------------ ------------
Operating income (loss) 168,645 (159,666)
------------ ------------
OTHER INCOME (EXPENSE):
Interest expense (22,130) (17,328)
Interest income 177 219
Other income, net 5,400 4,500
------------ ------------
(16,553) (12,609)
------------ ------------
Income (loss) before income taxes 152,092 (172,275)
Income tax (expense) benefit 33,000 35,000
------------ ------------
Income (loss) before cumulative
effect of change in accounting
principle 185,092 (137,275)
Cumulative effect on prior years
accounting change, net of tax (23,000) --
------------ ------------
Net income (loss) $ 162,092 $ (137,275)
============ ============
EARNINGS PER SHARE:
Income (loss) before cumulative
effect of accounting change $ .05 $ (.04)
Cumulative effect of accounting change (.01) --
------------ ------------
Net income(loss),basic and diluted $ .04 $ (.04)
============ ============
PRO FORMA AMOUNTS, assuming retroactive
application of new accounting method:
Net income (loss) $ 185,092 $ (151,509)
============ ============
Net income (loss) per share,
basic and diluted $ .05 $ (.04)
============ ============
See Notes to Consolidated Financial Statements.
GEORESOURCES, INC., AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CASH FLOWS
(Unaudited)
Three Months Ended
March 31,
----------------------------
2003 2002
------------ ------------
CASH FLOWS FROM OPERATING ACTIVITIES:
Net income (loss) $ 162,092 $ (137,275)
Adjustments to reconcile net income to net
cash provided by operating activities:
Depreciation and depletion 160,189 207,159
Cumulative effect of accounting change 23,000 --
Accretion of asset retirement obligation 19,000 --
Deferred income taxes (33,000) 7,000
Other 1,875 4,993
Changes in assets and liabilities:
Decrease (increase) in:
Trade receivables 33,451 (17,497)
Inventories (22,093) (40,824)
Income tax receivable -- (42,000)
Prepaid expenses and other (6,456) (16,704)
Increase (decrease) in:
Accounts payable (68,579) 84,560
Accrued expenses (35,252) (43,261)
------------ ------------
Net cash provided by
operating activities 234,227 6,151
------------ ------------
CASH FLOWS FROM INVESTING ACTIVITIES:
Additions to property, plant and equipment (137,846) (725,524)
------------ ------------
Net cash used in
investing activities (137,846) (725,524)
------------ ------------
CASH FLOWS FROM FINANCING ACTIVITIES:
Proceeds from long-term borrowings -- 710,000
Principal payments on long-term debt (32,060) (31,734)
Cost to purchase common stock (37,466) (11,172)
------------ ------------
Net cash provided by (used in)
financing activities (69,526) 667,094
------------ ------------
NET INCREASE (DECREASE) IN
CASH AND EQUIVALENTS 26,855 (52,279)
CASH AND EQUIVALENTS, beginning of period 329,302 191,328
------------ ------------
CASH AND EQUIVALENTS, end of period $ 356,157 $ 139,049
============ ============
SUPPLEMENTAL DISCLOSURE OF CASH FLOW INFORMATION:
Cash paid for:
Interest $ 22,130 $ 17,328
Income taxes -- --
See Notes to Consolidated Financial Statements.
GEORESOURCES, INC., AND SUBSIDIARIES
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS
(Unaudited)
1. In our opinion, the accompanying unaudited financial statements
contain all adjustments (consisting of only normal recurring accruals)
necessary to present fairly our financial position as of March 31,
2003, and the results of operations and cash flows for the three-month
periods ended March 31, 2003, and 2002.
The results of operations for the period ended March 31, 2003, are not
necessarily indicative of the results to be expected for the full
fiscal year.
Certain information and footnote disclosures normally included in
financial statements prepared in accordance with generally accepted
accounting principles have been condensed or omitted. Therefore, it is
suggested that these financial statements be read in connection with
the audited consolidated financial statements and the notes included
in our Annual Report on Form 10-KSB for the Year Ended December 31,
2002.
2. Certain accounts in the prior-year financial statements have been
reclassified for comparative purposes to conform with the presentation
in the current-year financial statements.
3. We assess performance and allocate resources based upon our products
and services, which consist principally of: A) oil and gas exploration,
development and production; B) mining and processing of leonardite; and C)
oil and gas drilling. All operations are conducted within the United
States. Operations of the drilling segment commenced in January 2002.
Sales and other material transactions between the segments have been
eliminated. Certain corporate costs, assets and capital expenditures that
are considered to benefit the entire organization are not allocated to our
operating segments. Interest income, interest expense and income taxes are
also not allocated to operating segments. There are no significant
accounting differences between internal segment reporting and consolidated
external reporting.
Presented below are our identifiable net assets as of the date
indicated:
March 31, December 31,
2003 2002
------------ ------------
Oil and gas $ 7,777,280 $ 6,176,486
Leonardite 803,220 860,868
Drilling 1,121,390 1,150,093
General corporate activities 899,889 860,753
------------ ------------
$ 10,601,779 $ 9,048,200
============ ============
Presented below is information concerning our operating segments for
the quarters indicated:
Three months ended March 31,
2003 2002
------------ ------------
Revenue:
Oil and gas $ 920,574 $ 552,265
Leonardite 156,394 91,550
Drilling -- 95,484
------------ ------------
$ 1,076,968 $ 739,299
============ ============
Income (loss) before income taxes:
Oil and gas $ 346,082 $ 16,645
Leonardite (45,945) (64,555)
Drilling -- 10,413
General corporate activities (131,492) (122,169)
Other income and expenses (16,553) (12,609)
------------ ------------
$ 152,092 $ (172,275)
============ ============
4. Change in Accounting Principle
Effective January 1, 2003, the Company adopted SFAS 143, "Accounting
for Asset Retirement Obligations" which requires that the fair value
of a liability for an asset retirement obligation associated with a
tangible long-lived asset be recognized in the period in which it is
incurred if a reasonable estimate of the fair value can be made. The
fair value is measured using expected future cash outflows discounted
at the Company's credit-adjusted risk-free interest rate. Accretion
expenses will be recognized over time as the discounted liability is
accreted to its expected settlement value. The associated asset
retirement cost is capitalized as part of the carrying amount of the
long-lived asset and consequentially is depreciated over the assets
useful life.
The asset retirement obligation recorded by the Company relates to the
plugging and abandonment of its oil and gas wells. Previously, the
Company assumed that the salvage value of oil and gas well equipment
equaled the dismantlement, restoration and reclamation costs.
Therefore, no accruals for retirement obligations were made. Under
SFAS 143, the Company is required to recognize the fair value of the
liability to plug and abandon a well in the period in which the
liability is incurred. The initial adoption of SFAS 143 on January 1,
2003, resulted in a one-time non-cash after-tax charge to operations
of $23,000 recorded as the cumulative effect of a change in accounting
principle. The adoption also resulted in an increase to oil and gas
properties being amortized of $1,562,000, a discounted liability for
asset retirement obligations of $1,589,000, and a decrease of deferred
income tax liabilities of $4,000. In addition, during the first
quarter of 2003, the Company recorded a pre-tax charge to income of
$19,000 to reflect the accretion of the liability.
There are no assets legally restricted for the purpose of settling
asset retirement obligations. There is no impact on the Company's cash
flows as a result of adopting SFAS 143.
ITEM 2. Management's Discussion and Analysis of
Financial Condition and Results of Operations
This discussion and analysis of financial condition and results of
operations, and other sections of this report contain forward-looking
statements within the meaning of the Private Securities Litigation Reform
Act of 1995, that are based on management's beliefs, assumptions, current
expectations, estimates and projections about the oil, gas and leonardite
industry, the economy and about us. Words such as "may," "will," "expect,"
"anticipate," "estimate" or "continue," or comparable words are intended to
identify forward-looking statements. These statements are not guarantees
of future performance and involve risks, uncertainties and assumptions that
are difficult to predict with regard to timing, extent, likelihood and
degree of occurrence. Therefore, our actual results and outcomes may
materially differ from what may be expressed or forecasted in our forward-
looking statements. Furthermore, we undertake no obligation to update,
amend or clarify forward-looking statements, whether as a result of new
information, future events or otherwise.
The following discussion should be read in conjunction with our
consolidated financial statements and related notes included elsewhere
herein. Important factors that could cause actual results to differ
materially from the forward-looking statements include, but are not limited
to, changes in production volumes; worldwide supply and demand which affect
commodity prices for oil; the timing and extent of our success in
discovering, acquiring, developing and producing oil, natural gas and
leonardite reserves; risks inherent in the drilling and operation of oil
and natural gas wells and the mining and processing of leonardite products;
future production and development costs; the effect of existing and future
laws, governmental regulations and the political and economic climate of
the United States; and conditions in the capital markets.
We caution the reader that a number of important factors discussed
herein, and in other reports filed with the Securities and Exchange
Commission, particularly our Annual Report on Form 10-KSB for the Year
Ended December 31, 2002, could affect our actual results and cause actual
results to differ materially from those discussed in forward-looking
statements.
Results of Operations - Three Months Ended March 31, 2003, compared to
Three Months Ended March 31, 2002.
Information concerning our oil and gas operations for the three months
ended March 31, 2003, is set forth in the table below:
Oil and Gas Operations
Percent Increase
Three Months Ended (Decrease) from
March 31, 2003 2002 Period
------------------ ----------------
Oil and gas production
sold (BOE) 32,337 (7%)
Average price per BOE $ 28.47 80%
Oil and gas revenue $ 920,574 67%
Production costs $ 445,112 15%
Average production cost
per BOE $ 13.76 24%
Oil and gas production sold during the first quarter 2003 decreased by
2,500 barrels of oil equivalent (BOE) or 7% compared to the same quarter in
2002. This decrease primarily reflects the average decline of our wells as
little new production was realized in 2002. In 2003 we believe our level
of drilling will be higher due to having an available rig and increased
cash flow from higher oil prices. We expect that activity to translate
into production increases during the remainder of 2003 as long as oil
prices continue to justify and provide cash flow for further drilling.
The average price for our oil and gas commodities sold during the first
quarter advanced dramatically from $15.83 in the first quarter 2002 to
$28.47 in the same period of 2003 for a quarter-to-quarter gain of 80%.
First quarter 2002 oil prices were the lowest in that year, while first
quarter 2003 could likely be this year's highest. Due principally to the
change in our average value received per BOE, oil and gas revenue grew by
$368,000 or 67% compared to the same period in 2002. Revenue growth did
not equal the average price gain because of the 7% lower volume of oil
sold, as discussed above. Oil and gas production costs increased $58,000
or 15%, mostly due to higher production taxes that are directly tied to oil
prices and hence revenue. Production costs on a per-equivalent-barrel
basis for the first quarter of 2003 escalated $2.66 or 24% from $11.10 for
the first quarter 2002 to $13.76 this quarter due primarily to the
production taxes already discussed.
Information concerning our leonardite operations for the three months
ended March 31, 2003, is set forth in the table below:
Leonardite Operations
Percent Increase
Three Months Ended (Decrease) from
March 31, 2003 2002 Period
------------------ ----------------
Leonardite production
sold (tons) 1,687 73%
Average revenue per ton $ 92.71 (1%)
Leonardite revenue $ 156,394 71%
Cost of leonardite sold $ 169,150 34%
Average production cost
per ton $ 100.27 (22%)
Leonardite revenues increased $65,000 or 71% due to a 73% increase in the
number of tons sold. The higher sales reflect an increase in drilling in
the Gulf States area during the first quarter of 2003 compared to the prior
year's quarter. Management believes the increase in oil prices contributed
to the increase in drilling. Leonardite prices remained stable with just a
1% decline in the average revenue per ton for the first quarter 2003
compared to the same period 2002. Cost of leonardite sold increased
$43,000 or 34% due to the increase in production sold. Average production
costs per ton decreased $28.94 or 22% due to fixed costs that were spread
over the higher volume being sold while inventory levels were maintained.
Drilling Operations
Our new subsidiary, Western Star Drilling Company ("WSDC"), commenced
operations January 2, 2002. During the first quarter 2003, it drilled one
well for us but did not perform any drilling for other operators.
Accordingly, drilling revenue and costs for the first quarter were $0.
These results compare to the same quarter of 2002, when drilling operations
had revenue of $95,000, costs of $58,000 and an operating income before
depreciation of $37,000.
Consolidated Analysis
Total operating revenue increased $338,000 or 46% due to increased energy
prices and leonardite sales. Total operating expenses increased $9,000 or
1%. Operating expenses for oil and gas, leonardite, and drilling were
previously discussed. Depreciation, depletion and amortization decreased
due to the implementation of SFAS 143 and lower depletion of oil and gas
properties. Selling, general and administrative costs increased primarily
due to our efforts to increase investor awareness of the company.
Operating income increased to $169,000 compared to an operating loss of
$160,000 for the same period in 2002. Income taxes were a $33,000 benefit
for the first quarter 2003 due to a reduction of future state income tax
rates that was enacted by the North Dakota legislature. Resulting income
before the cumulative effect of the change in accounting principle
increased 235% from a net loss of $137,000 or $.04 for the first quarter of
2002 to net income of $185,000 or $.05 for the first quarter of 2003. The
initial adoption of SFAS 143 resulted in a one-time non-cash charge of
$23,000 for the cumulative effect of the change in accounting principle.
Liquidity and Capital Resources
At March 31, 2003, we had working capital of $443,000 compared to working
capital of $311,000 at December 31, 2002. Our current ratio was 1.44 to 1
at March 31, 2003, compared to 1.28 to 1 at December 31, 2002.
Net cash provided by operating activities was $234,000 for the quarter
ended March 31, 2003, compared to $6,000 for the same period in 2002. Cash
was utilized to make payments of $138,000 for additions to property, plant
and equipment, $32,000 for payment on long-term debt and $37,000 for stock
repurchases.
We believe our future cash requirements can be met by cash flows from
operations and, if necessary, borrowings on our $3,000,000 line-of-credit,
of which $1,225,000 remains available for use at March 31, 2003. Future
cash requirements might also be provided by possible forward sales of oil
reserves or additional debt or equity financing.
Item 3. Controls and Procedures
Under the supervision and with the participation of management, including
our Chief Executive Officer/Chief Financial Officer, we conducted an
evaluation of our disclosure controls and procedures, as such term is
defined under Rule 13a-14(c) promulgated under the Securities Exchange Act
of 1934, as amended within 90 days of the filing date of this report.
Based on the evaluation, our Chief Executive Officer/Chief Financial
Officer concluded that our disclosure controls and procedures are
effective.
There have been no significant changes (including corrective actions with
regard to significant deficiencies or material weaknesses) in our internal
controls or in other factors that could significantly affect these controls
subsequent to the date of the evaluation referenced above.
PART II. OTHER INFORMATION
Item 1. Legal Proceedings.
We are a defendant in a bankruptcy case with respect to a preference
claim brought on November 8, 2002, in the United States Bankruptcy Court,
Southern District of Texas, Houston Division (adversary proceeding number
02-03827.) The bankruptcy trustee of a former leonardite customer, Ambar,
Inc. (n/k/a Ramba, Inc.) has brought a preference claim of approximately
$160,000 alleging that we received preferential transfers from Ambar, Inc.
within 90 days of its bankruptcy petition filed on November 21, 2000. We
and other similarly situated defendants have joined together to share a
common defense in order to reduce legal costs. We are defending against
the claim based on the position that the payments we received were not
preferential transfers but rather were (a) payments on a trade account that
were received in the normal course of business, or (b) payments that did
not come from the debtor. We may also consider a settlement on the claim
if we deem it economically advisable. As of December 31, 2002, we recorded
a reserve of $50,000 with respect to this matter.
Except as discussed herein, we are not a party, nor are any of our
properties subject, to any pending material legal proceedings. We know of
no legal proceedings contemplated or threatened against us.
Item 6. Exhibits and Reports on Form 8-K.
(a) Exhibits.
99.1 Certification of the Chief Executive Officer
99.2 Certification of the Chief Financial Officer
(b) Reports on Form 8-K.
Press Release dated April 4, 2003 regarding 2002 Earnings was filed
under Item 7 on April 4, 2003.
SIGNATURES
In accordance with the requirements of the Exchange Act, the Registrant
caused this report to be signed on its behalf by the undersigned thereunto
duly authorized.
GEORESOURCES, INC.
May 15, 2003
/S/ J. P. Vickers
J. P. Vickers
Chief Executive Officer
Chief Financial Officer
Certification of Chief Executive Officer
of GeoResources, Inc. pursuant to Section 302
of the Sarbanes-Oxley Act of 2002
I, J. P. Vickers, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of GeoResources,
Inc.;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant, and we have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;
b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing
date of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officer and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):
a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified
for the registrant's auditors any material weaknesses in internal controls;
and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant deficiencies
and material weaknesses.
Date: May 15, 2003 /S/ J. P. Vickers
J. P. Vickers, Chief Executive Officer
Certification of Chief Financial Officer
of GeoResources, Inc. pursuant to Section 302
of the Sarbanes-Oxley Act of 2002
I, J. P. Vickers, certify that:
1. I have reviewed this quarterly report on Form 10-QSB of GeoResources,
Inc.;
2. Based on my knowledge, this quarterly report does not contain any
untrue statement of a material fact or omit to state a material fact
necessary to make the statements made, in light of the circumstances under
which such statements were made, not misleading with respect to the period
covered by this quarterly report;
3. Based on my knowledge, the financial statements, and other financial
information included in this quarterly report, fairly present in all
material respects the financial condition, results of operations and cash
flows of the registrant as of, and for, the periods presented in this
quarterly report;
4. The registrant's other certifying officer and I are responsible for
establishing and maintaining disclosure controls and procedures (as defined
in Exchange Act Rules 13a-14 and 15d-14) for the registrant, and we have:
a) designed such disclosure controls and procedures to ensure that
material information relating to the registrant, including its consolidated
subsidiaries, is made known to us by others within those entities,
particularly during the period in which this quarterly report is being
prepared;
b) evaluated the effectiveness of the registrant's disclosure
controls and procedures as of a date within 90 days prior to the filing
date of this quarterly report (the "Evaluation Date"); and
c) presented in this quarterly report our conclusions about the
effectiveness of the disclosure controls and procedures based on our
evaluation as of the Evaluation Date;
5. The registrant's other certifying officer and I have disclosed, based
on our most recent evaluation, to the registrant's auditors and the audit
committee of registrant's board of directors (or persons performing the
equivalent function):
a) all significant deficiencies in the design or operation of
internal controls which could adversely affect the registrant's ability to
record, process, summarize and report financial data and have identified
for the registrant's auditors any material weaknesses in internal controls;
and
b) any fraud, whether or not material, that involves management or
other employees who have a significant role in the registrant's internal
controls; and
6. The registrant's other certifying officers and I have indicated in
this quarterly report whether or not there were significant changes in
internal controls or in other factors that could significantly affect
internal controls subsequent to the date of our most recent evaluation,
including any corrective actions with regard to significant deficiencies
and material weaknesses.
Date: May 15, 2003 /S/ J. P Vickers
J. P. Vickers, Chief Financial Officer
EXHIBIT INDEX
Exhibit
Number
99.1 Certification of the Chief Executive Officer (filed herewith).
99.2 Certification of the Chief Financial Officer (filed herewith).
Exhibit 99.1
Certification of Chief Executive Officer
of GeoResources, Inc Pursuant to 18 U.S.C. Section 1350
I, J. P. Vickers, certify that:
In connection with the Quarterly Report on Form 10-QSB of GeoResources,
Inc. (the "Company") for the period ended March 31, 2003, as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), I, J.
P. Vickers, Chief Executive Officer of the Company, certify, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002, that:
1. the Report fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934, as amended; and
2. the information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations
of the Company.
/S/ J. P. Vickers
J. P. Vickers
Chief Executive Officer
May 15, 2003
Exhibit 99.2
Certification of Chief Financial Officer
of GeoResources, Inc. Pursuant to 18 U.S.C. Section 1350
I, J. P. Vickers, certify that:
In connection with the Quarterly Report on Form 10-QSB of GeoResources,
Inc. (the "Company") for the period ended March 31, 2003, as filed with the
Securities and Exchange Commission on the date hereof (the "Report"), I, J.
P. Vickers, Chief Financial Officer of the Company, certify, pursuant to 18
U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-
Oxley Act of 2002, that:
1. the Report fully complies with the requirements of Section 13(a)
or 15(d) of the Securities Exchange Act of 1934, as amended; and
2. the information contained in the Report fairly presents, in all
material respects, the financial condition and results of operations
of the Company.
/S/ J. P. Vickers
J. P. Vickers
Chief Financial Officer
May 15, 2003