Independent oil and gas company GeoResources Inc. and Resolute Energy Corp. have entered into announced a joint venture project to develop acreage in the Bakken Shale Trend of North Dakota.
GeoResources has acquired roughly 61,000 gross (42,000 net) leasehold acres in Williams County, North Dakota. Resolute will acquire a 45% interest in the acreage and GeoResources will retain a 45% interest and operations. A third industry partner is expected to participate for the remaining 10%.
Currently, the parties plan to drill at least three horizontal wells in the Middle Bakken formation prior to year end, as well as seek to acquire additional acreage in the area. Recent activity in Williams County has confirmed commercial production in the Middle Bakken formation, which is a primary objective for the joint venture. Secondary objectives include the Three Forks, Madison and the Red River formations.
Houston-based GeoResources is primarily focused in three core areas – the Southwest, Gulf Coast and the Williston Basin.
In its recent proved reserves report as of December 31, 2009, the company shows 467% of production replaced and reports a reserve quantities increase of 42%.
