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GEORESOURCES, INC. REPORTS FIRST QUARTER 1993 EARNINGS

 WILLISTON, N.D., June 1 /PRNewswire/ -- GeoResources, Inc. (NASDAQ: GEOI), a natural resources exploration and production company, today announced first quarter 1993 net income of $631,600 or 16 cents per share on revenue of $642,300 compared to a first quarter 1992 net loss of $35,100 or 1 cent per share on revenue of $411,100.
 The unusually large net income for first quarter 1993 was primarily due to the company's treatment of income taxes required by adoption of Statement of Financial Accounting Standard (SFAS) No. 109 effective Jan. 1, 1993. This resulted in a $577,000 deferred tax benefit that represented the cumulative effect on prior years of changing the method of accounting for income taxes.
 First quarter 1993 net income before the income tax benefit was $54,600 or 1.4 cents per share compared to the $35,100 loss or 0.9 cents per share for the same period in 1992. This earnings increase resulted from production gains in oil and gas operations attributed to acquisitions made in 1992, coupled with general improvements in leonardite operations.
 GeoResources, Inc.'s common stock is traded on The NASDAQ Small-Cap Market under the symbol "GEOI."
 GEORESOURCES, INC.
 STATEMENTS OF OPERATIONS
 (Unaudited)
 Three months ended
 3/31/93 3/31/92
 Operating Revenues:
 Oil and gas sales 453,869 290,592
 Leonardite sales 188,444 120,532
 -- 642,313 411,124
 Operating costs and expenses:
 Oil and gas production 168,210 103,784
 Cost of leonardite sold 154,664 139,651
 Depreciation and depletion 148,313 130,357
 Selling, general and administrative 82,854 83,041
 -- 554,041 456,833
 Operating income (loss) $88,272 $(45,709)
 Other income (expense):
 Interest expense (24,677) (15,496)
 Interest income 2,260 2,921
 Rent and other, net 3,750 13,158
 -- (18,667) 583
 Income (loss) before income taxes $69,605 $(45,126)
 Income tax benefit (expense) (15,000) 10,000
 Income (loss) before cumulative effect
 of change in accounting for income taxes 54,605 (35,126)
 Cumulative effect on prior years of
 changing method of accounting for
 income taxes (Note 4) 577,000 --
 Net income (loss) $631,605 $(35,126)
 Earnings per share:
 Income (loss) before cumulative effect of
 change in accounting for income taxes $.01 $(.01)
 Cumulative effect on prior years of
 changing method of accounting for
 income taxes .15 --
 Net income (loss) $.16 $(.01)
 Weighted average number of shares
 outstanding 3,961,714 3,961,714
 GEORESOURCES, INC. NOTES TO FINANCIAL STATEMENTS
 1. In the opinion of management of GeoResources, Inc., the accompanying unaudited financial statements contain all adjustments (consisting of only normal recurring accruals) necessary to present fairly the financial position of the company as of March 31, 1993, and Dec. 31, 1992, and the results of operations and cash flows for the three months ended March 31, 1993, and 1992.
 2. The results of operations for the three month period ended March 31, 1993, are not necessarily indicative of the results to be expected for the full fiscal year.
 3. As discussed in Note I to the company's financial statements included in Form 10-K for the year ended Dec. 31, 1992, prior to the fourth quarter of 1992 the company allocated certain administrative expenses to oil and gas production costs. During the fourth quarter of 1992, management determined that these allocations were more appropriately included in administrative expenses. The previously reported statement of operations for the three months ended March 31, 1992, included $47,280 of administrative expenses that were allocated to oil and gas production costs. Accordingly, in order to present comparable information, the accompanying statement of operations for the three months ended March 31, 1992, has been reclassified to include the $47,280 in selling, general and administrative expenses.
 4. Effective Jan. 1, 1993, the company adopted the liability method of accounting for income taxes under Statement of Financial Accounting Standard (SFAS) No. 109. Prior to 1993 income taxes were calculated in accordance with the liability method prescribed by SFAS No. 96. The adoption of SFAS No. 109 resulted in a tax benefit of $577,000 in the first quarter of 1993.
 The components of the net deferred tax liabilities as of Jan. 1, 1993, under SFAS No. 109 are as follows:
 Deferred tax assets (long-term):
 Net operating loss carryover $187,000
 Statutory depletion carryover 698,000
 Investment tax credit carryover 326,000
 Total deferred tax assets 1,211,000
 Less valuation allowance (106,000)
 Net deferred tax assets 1,105,000
 Deferred tax liabilities (long-term):
 (primarily property, plant and
 equipment) (1,027,000)
 Net deferred tax asset $78,000
 -0- 6/01/93
 /CONTACT: Cathy Kruse of GeoResources, 701-572-2020/
 (GEOI)


CO: GeoResources, Inc. ST: North Dakota IN: OIL SU: ERN

DB -- MN019 -- 4165 06/01/93 17:41 EDT
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Date:Jun 1, 1993
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