GeoResources Inc., Williston, ND, explores for oil and natural gas in the North Dakota and Montana portions of the Williston basin. The company also operates a contract drilling subsidiary, Western Star Drilling Co., as well as a coal mine and processing plant at Williston.
The mining operations produce leonardite, a type of oxidized lignite coal, which is processed into specialty products, including drilling-mud additives. The oil and gas segment historically contributes more than 70% of the company's revenue and earnings.
GeoResources Inc. Pres. and CEO Jeffrey P. Vickers
GeoResources formed Western Star Drilling because of a drilling rig shortage in parts of the Williston basin. In September 2001, GeoResources bought a drilling rig rated to 8,000 ft and had it retrofitted for Western Star.
The drilling business generated operating income in its first year and provides GeoResources with access to equipment for its own drilling projects.
Production
In 2001, GeoResources produced an average of 416 boe/d with 134 wells from 42 fields.
The company produced 374 boe/d in second quarter 2003, representing a 1% increase from the same period in 2002 and a 4% increase compared with the first quarter 2003. The slight increase in production stemmed from workovers.
The company plans to drill two wells in Leonard field in Bottineau County, ND, and expects to have at least one drilled before the end of the third quarter.
GeoResources Pres. and CEO Jeffrey P. Vickers said in a news release, "We are diligently working to offset natural production declines and get incremental barrels from our properties. At current prices, these additional barrels are very profitable."
He was unavailable for an OGJ interview. Formerly an associate petroleum engineer for Amerada Hess Corp. in the Williston basin, Vickers started with GeoResources as the company's drilling and production manager in 1981. He became a director in June 1982 and was named president on Jan. 1, 1983.