WILLISTON, N.D., April 3, 2003 (PRIMEZONE) -- GeoResources, Inc. (Nasdaq:GEOI) today reported 2002 net income increased 116% to $91,000 or $0.02 per share on revenue of $3,849,000 compared to 2001 net income of $42,000 or $0.01 per share on revenue of $3,978,000. Earnings before interest, taxes, depreciation, depletion and amortization (EBITDA) for the year was $890,000, a 2% increase from the prior year.
For the fourth quarter, the company reported net income of $126,000 or $0.03 per share on revenue of $1,128,000 versus a net loss of $339,000 or $0.09 per share on revenue of $701,000 in the fourth quarter of 2001. EBITDA for the quarter was $258,000.
GeoResources' production declined 6% in 2002 to 142,197 net BOE due to normal production declines that were not offset by new drilling. Total proved oil and gas reserves increased to 2,557,000 BOE at year-end 2002 versus 2,156,000 BOE at year-end 2001. The increase was primarily attributable to higher year-end commodity prices.
J.P. Vickers, GeoResources President said, "Our improved 2002 financial performance resulted from higher commodity prices and lower lease operating expenses. We reduced our lease operating expense per barrel almost 7%, a significant accomplishment. Our decision to form a drilling subsidiary looks encouraging. The drilling business generated operating income in its first year and gave us access to equipment to drill for our own account. We will use Western Star's Rig E25 to also drill our second well for 2003 and expect to drill at least two more before the end of the year."
On March 24, 2003, the Company finished drilling the SSMU C-101X, a development well in the Company's South Starbuck Madison Unit. It is the fifth production well in the unit and appears productive from the Madison interval at approximately 3,300 feet. The drilling rig has been moved to a new location to begin drilling an exploratory well, the Boll 1-26. GeoResources' working interest in both wells is approximately 100%.
Information herein contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995, which can be identified by words such as "may," "will," "expect," "anticipate," "estimate" or "continue," or comparable words. In addition, all statements other than statements of historical facts that address activities that the Company expects or anticipates will or may occur in the future are forward-looking statements. Readers are encouraged to read the SEC reports of the Company, particularly its Form 10-KSB for the Fiscal Year Ended December 31, 2002, for meaningful cautionary language disclosure.
GEORESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
DECEMBER 31, 2002 AND 2001
ASSETS
CURRENT ASSETS: 2002 2001
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Cash and equivalents $ 329,302 $ 191,328
Trade receivables, net 821,459 626,359
Inventories 207,998 196,858
Income tax receivable 50,192 23,000
Prepaid expenses 28,326 25,155
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Total current assets 1,437,277 1,062,700
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PROPERTY, PLANT AND EQUIPMENT, at cost:
Oil and gas properties, using the
full cost method of accounting:
Properties being amortized 22,636,316 21,594,355
Properties not subject
to amortization 251,714 239,067
Drilling rig and equipment 1,077,551 968,064
Leonardite plant and equipment 3,262,200 3,244,605
Other 757,431 759,742
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27,985,212 26,805,833
Less accumulated depreciation,
depletion, amortization and
impairment (20,386,789) (19,689,932)
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Net property, plant and equipment 7,598,423 7,115,901
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OTHER ASSETS 12,500 23,118
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TOTAL ASSETS $ 9,048,200 $ 8,201,719
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LIABILITIES AND STOCKHOLDERS' EQUITY
CURRENT LIABILITIES:
Accounts payable $ 659,282 $ 938,807
Accrued expenses 335,219 222,675
Current maturities of long-term debt 132,260 125,000
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Total current liabilities 1,126,761 1,286,482
LONG-TERM DEBT, less current maturities 1,910,228 1,035,228
DEFERRED INCOME TAXES 395,000 344,000
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Total liabilities 3,431,989 2,665,710
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CONTINGENCIES (NOTE H)
STOCKHOLDERS' EQUITY:
Common stock, par value $.01 per share;
authorized 10,000,000 shares; issued
and outstanding, 3,787,477
and 3,794,227 shares, respectively 37,875 37,942
Additional paid-in capital 384,185 395,290
Retained earnings 5,194,151 5,102,777
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Total stockholders' equity 5,616,211 5,536,009
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TOTAL LIABILITIES AND
STOCKHOLDERS' EQUITY $ 9,048,200 $ 8,201,719
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GEORESOURCES, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
YEARS ENDED DECEMBER 31, 2002, 2001 AND 2000
2002 2001 2000
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OPERATING REVENUE:
Oil and gas $2,980,228 $3,064,135 $4,436,278
Leonardite 588,019 913,568 675,928
Drilling 280,538 -- --
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3,848,785 3,977,703 5,112,206
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OPERATING COSTS AND EXPENSES:
Oil and gas production 1,619,049 1,856,159 1,659,260
Cost of leonardite sold 587,651 824,296 668,849
Drilling costs 237,729 -- --
Depreciation, depletion
and amortization 696,857 744,742 674,020
Selling, general and
administrative 545,368 471,517 405,622
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3,686,654 3,896,714 3,407,751
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Operating income 162,131 80,989 1,704,455
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OTHER INCOME (EXPENSE):
Interest expense (95,635) (44,834) (140,696)
Interest income 11,635 20,294 24,408
Other income and losses, net 18,955 22,369 19,630
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(65,045) (2,171) (96,658)
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Income before income taxes 97,086 78,818 1,607,797
INCOME TAX EXPENSE (5,712) (37,000) (193,000)
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Net income $ 91,374 $ 41,818 $1,414,797
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EARNINGS PER SHARE:
Net income, basic and diluted $ .02 $ .01 $ .36
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Weighted average number of shares
outstanding 3,787,750 3,846,176 3,958,204
Dilutive potential shares --
Stock options -- -- --
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Adjusted weighted average shares 3,787,750 3,846,176 3,958,204
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