GeoResources (GEOI)

[dan_s]

I just completed updating my Net Income and Cash Flow forecast for GEOI. Kim will load it to the website tomorrow.

I'm raising my Fair Value estimate to $21/share.
> GeoResources (which will be hosting our luncheon this Friday) continues to deliver steady production growth with the mix turning more to oil.
> The company has a strong Balance Sheet and operating cash flows sufficient to fund their capital program.
> Their new Bakken Shale play could provide a major step change for the company.

Average Daily Production by Year:
2006 Actual = 4,604 mcfepd (34% gas)
2007 Actual = 10,953 mcfepd (41% gas)
2008 Actual = 20,272 mcfepd (40% gas)
2009 Actual = 27,485 mcfepd (49% gas)
2010 Forecast = 32,653 mcfepd (45% gas)
2010 Forecast = 38,000 mcfepd (45% gas)

Development drilling in their Bakken Shale acreage could add significant oil production after 2010.

Dan