GeoResources (NASDAQ:GEOI) First Bakken Shale Well Successful

With their first Bakken Shale well drill successful, and drilling to start in Eagle Ford shale, Global Hunter sees GeoResources (NASDAQ:GEOI) oil production exceeding expectations in 2011.

Global said, "GEOI provided an update on its drilling activities and CAPEX plans for 2011. With its initial operated Bakken Shale well having been successful with an IP rate of 685 Boepd, the company is committed to keeping an operated drilling rig running full time in 2011. Currently, the company has 30,000 net operated acres and 14,000 net non-operated acres providing approximately 55 future drilling locations. The company will also begin a continuous drilling program on its newly acquired Eagle Ford shale acreage in Fayette County, TX in February, with plans to drill 12 wells in 2011. This commitment significantly raises our forecasted oil production for 2011, resulting in YOY production growth of 16% and increasing our 2011 estimated EPS and CFPS by 10%."

Global Hunter Securities maintains a "Buy" rating on GeoResources, which closed Thursday at $25.14, up $0.38, or 1.53 percent. Global boosted their price target on them from $22 to $30.