Western Logic neighbor hits oil.
GeoResources, Inc. Reports Initial Pump Production for its
Ballantyne-State/Steinhaus H1 Horizontal Well
WILLISTON, N.D., Aug. 26 /PRNewswire/ -- GeoResources, Inc. (Nasdaq:GEOI), a diversified natural
resources exploration and production company, today announced that initial daily production from its
Ballantyne-State/Steinhaus H1 (BSS H1) horizontal well was 277 barrels of oil and 340 barrels of water for
the morning of August 25, 1997. The Company owns a 100% working interest in this well and is the operator.
Jeffrey P. Vickers, Company President, said, ``The BSS H1 was put on production on August 20, 1997, and
the daily production level since that time has basically been maximum pump capacity of about 600 barrels of
total fluid per day. While these initial high flush production rates are encouraging, the well will need to produce
for some time before we can determine reserves or stabilized production rates.'' The Company believes the
performance of this well will be of interest to the oil and gas industry because its entire 3,700' lateral was
drilled using on-site generated nitrogen underbalanced drilling technology made possible by an
Electro-Magnetic (EM) system, a new type of directional drilling tool. EM tools transmit steering signals
directly through the ground and do not have to rely on pressure pulses to be transmitted through drilling mud.
GeoResources' BSS H1 was the first well in North Dakota to use an EM tool and on-site generated nitrogen.
United GeoCom Drilling Services supplied the EM tool and ICE Drilling Systems, Inc. performed the nitrogen
generation. GeoResources believes EM systems are the wave of the future but, for the time being, their
availability is very limited.
This property is adjacent to Western Logic's new North Dakota leases announced several weeks ago.
Cheers,
Paul |
