GEOI Operations Update

[dan_s]

My take on today's press release:
> Eagle Ford results are very promising. They are ramping up to four operated rigs in the Eagle Ford over the next twelve months. This could have a significant positive affect on my 2012 forecast.
> Bakken results are not as good but it is way too early to tell. The wet weather up in North Dakota has slowed down everything. We need to see more operated wells completed to know what they have up there.

Again, the Eagle Ford is VERY PROMISING.

[wilmawatts]

Global spare production capacity has fallen to very bullish levels for oil producers - and firm in the sector that is very attractive in our opinion is GeoReources (GEOI). The company is:

* domestically based, reducing political risk
* focused on oil and liquids development
* in the Bakken and Eagle Ford fields - two of the hottest areas around
* growing production
* growing reservers
* profitable and growing
* relatively small and very flexible
* overlooked by Wall Street

Management owns a good stake, acquired at market prices not by stock grant or massive options program. Management is also time tested, these guys have been around the block.

Last week the company issued a very postive operations update.

The global oil market, and GeoResources, are discussed today:

http://www.lsgifund.com/index_files/Page960.htm

[dan_s]

I have been talking to GeoResources and I expect them to host an EPG luncheon for us in Houston during the next 90-days.

We are putting together a great luncheon schedule, including Brigham Exploration (BEXP) on August 23 in Houston.

Now is the time to become an EPG member. All of our luncheons in Houston and Dallas are FREE to members.

[wilmawatts]

Yesterday the International Energy Agency (IEA) released their monthly report. In our opinion it was a real ‘shocker’ to the extent that the IEA is usually has the most conservative outlook with regard to the crude oil markets—they have a tendency to understate demand and to overstate available supplies.

The IEA monthly report warned that unless OPEC increases production by at least 1.5 million barrels a day, world oil demand will surpass available supply during the second half of the year. The bottom line is that supply will fall short of the 89 million barrels of oil the global economy is expected to consume, which should push world oil prices higher – potentially substantially higher depending on global inventory levels

Separately OPEC warned yesterday that global oil demand will reach record levels in 2011 - and demand will continue to set records in 2012.

The forecasts are discussed today, along with investment firms analysis:

http://www.lsgifund.com/index_files/Page960.htm

We talk a bit more about GEOI today, higher oil prices should light a fire under the share price.

[setliff]

Analyst Actions: GeoResources Downgraded to Neutral from Outperform at Robert W. Baird 07/18 07:00 AM

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08:00 AM EDT, 07/18/2011 (MidnightTrader) -- GeoResources (GEOI:$27.61,00$0.00,000.00%) is reportedly downgraded to Neutral from Outperform at Robert W. Baird based on valuation.