Slide 1: HK to Acquire GEOI
Exhibit 99.2 HK to Acquire GEOI April 25, 2012
Slide 2: Forward-Looking Statements
Forward-Looking Statements This presentation contains forward-looking information regarding Halcón Resources and GeoResources that is intended to be covered by the safe harbor for "forward-looking statements" provided by the Private Securities Litigation Reform Act of 1995. Forward- looking statemen
Slide 3: Additional Information
Additional Information Halcón Resources and GeoResources intend to file materials relating to the transaction with the SEC, including a registration statement of Halcón Resources, which will include a prospectus of Halcón Resources and a joint proxy statement of Halcón Resources and GeoResources. Th
Slide 4: Announcing the Acquisition of GEOI by HK
Announcing the Acquisition of GEOI by HK Consideration($37.97per GEOIshare(1)): $20.00 in cash 1.932 HK shares (1) Total transaction value ~$1.0 Billion GEOI stockholders to own ~18% of HK at closing Expected to close in 3Q12, subject to customary approvals 4 (1) Basedon the closingprice of HalcónRe
Slide 5: Liquids-Rich Asset Base and Significant Drilling Inventory
Liquids-Rich Asset Base and Significant Drilling Inventory 3 Exploratory Liquids-Rich Plays Not Shown Bakken Mississippian Lime Utica/Point Pleasant Woodbine Austin Chalk Wilcox PF Total Proved Reserves: 52.8 MMBoe Eagle Ford PF % Developed: 68% PF % Oil/NGLs: 69% PF 4Q11 Avg. Net Daily Production:
Slide 6: Creating a Resource Powerhouse
Creating a Resource Powerhouse Numerous“oily” resourcestylehighgrowth assets Resource Intensity Multi-decade drilling inventory Improves commercial opportunity set Accretive To Immediatelyaccretiveto discretionarycashflow, productionandreserveson a persharebasis Shareholders More than doubles HK pro
Slide 7: Substantial Increase in Production and Reserves
Substantial Increase in Production and Reserves (1) Includes GeoResources’ Brookeland field acquisition. (2) Proved reserves at 12.31.11 using SEC pricing including GeoResources’ management estimates of 12.31.11 proved reserves associated with Brookeland field acquisition using SEC pricing; proved r
Slide 8: Pro Forma Non-Core Divestiture Candidates
Pro Forma Non-Core Divestiture Candidates 2011 Average Net (1) Daily Production Proved Reserves Boe/d (1) Full Year 4Q11 Oil Gas NGL Equiv. % % Total PF PV10 % Total PF MBbls MMcf MBbls Mboe Oil/NGLs % PD Reserves ($MM) PV10 Permian 322 322 1,205 2,087 44 1,597 78% 72% 3% $46.3 4% South Texas 865 73
Slide 9: Increased Capitalization
Increased Capitalization HK Recap GEOI Merger HK + GEOI ($000s) 12.31.11 Adjustments 12.31.11 Adjustments PF 12.31.11 Debt (1)(2) Revolving Credit Facility 127,000 (127,000) 53,100 (53,100) - Term Loan 75,000 (75,000) - - - (3) 8.00% Sr. Conv. Note due 2017 - 248,961 - - 248,961 Total Debt $202,000
Slide 10: Solid Liquidity to Fund Growth
Solid Liquidity to Fund Growth HK Recap GEOI Merger HK + GEOI ($000s) 12.31.11 Adjustments 12.31.11 Adjustments PF 12.31.11 Cash and Cash Equivalents 49 710,342 39,144 (611,391)(1) 138,144 Revolving Credit Facility 150,000 75,000 180,000 70,000 475,000(2) Borrowings (127,000) 127,000 (53,100) 53,100
Slide 11: Bakken Project Area Overview
Bakken Project Area Overview 55,000 net acres (37,000 operated) Diversified Footprint Across Bakken Trend (1) 50+ MMBoe of unbooked resource potential NW Williams County (operated) 2 rigs running 20-24 gross wells planned for 2012 (~30% -~35% W.I.) Eastern Montana (operated) Rig to begin drilling in
Slide 12: Bakken Operated Project Area Economics and Upside
Bakken Operated Project Area Economics and Upside (1)(2) Potential for increased drilling Base Case Returns (300 Mboe) density (i.e. 4-6 wells per 1280 acre unit) Three Forks formation potential Improved frac efficiency expected Multiple initiatives underway to lower D&C, operating costs and improve
Slide 13: Eagle Ford Project Overview
Eagle Ford Project Overview Eagle Ford Acreage Position 24,000 net acres (operated) (1) 50+ MMBoe of unbooked resource potential rd 2 rigs running (3to be added in 2H12) 20-24 gross operated wells planned for 2012 (~45% W.I.) Geology similar to area being developed by offset operators to the south M
Slide 14: Eagle Ford Project Economics and Upside
Eagle Ford Project Economics and Upside (1)(2) Base Case Returns (325 Mboe) Continued refinement of optimal completion methodology Potential for increased drilling density (i.e. 80 or 120 acre spacing) Austin Chalk potential (unconventional/conventional) Potential to lower costs and improve recoveri
Slide 15: Eagle Ford Project Improvements
Eagle Ford Project Improvements First three well completions largely ineffective Laterals3200’-5900’with 10-16fracstages 40/70 white sand (embedment issues) Slick water, linear gels and cross link frac fluids Recent six wells Targeting 5000’laterals with 20 frac stages 20/40 and 30/50 resin coated a
Slide 16: 2012 Pro Forma D&C, Seismic and Infrastructure Estimate
2012 Pro Forma D&C, Seismic and Infrastructure Estimate By Category By Area Drilling and Completions 78% Utica/Point Pleasant 9% Seismic 9% Woodbine 8% Infrastructure 13% Wilcox 8% Total ~$620 MM Mississippi Lime 9% Bakken 17% Eagle Ford 16% Austin Chalk 1% Exploratory Liquids Plays 11% Infrastructu
Slide 17: 2012 Operating and Financial Guidance Summary
2012 Operating and Financial Guidance Summary HK GEOI Production Total (Boe/d) 6,161-6,270 7,300 –8,300 Percent Oil & NGLs 70% 65-70% Operating costs and expenses ($ per Boe) UNDER REVIEW Note: Pro forma combined guidance under review; guidance is forward-looking information that is subject to a num
Slide 18: Building An Oil Company
Building An Oil Company (1) Targeted Net Acres Progress First Spud Targeted Areas Utica / Point Pleasant 150,000 -250,000 ~50% May Woodbine 150,000 -250,000 ~35% May Wilcox 50,000 -100,000 ~30% June Mississippian Lime 50,000 -100,000 ~60% April Total Targeted- Areas 400,000 -700,000 ~42% 3 Explorato
Slide 19: Utica/Point Pleasant Overview
Utica/Point Pleasant Overview Target Acreage: 150,000250,000 – Focus –volatile oil and liquids-rich window NY Access to cores, geochem and logs 3D seismic to optimize completions and reduce costs PA Utica/Point Pleasant Wells could be as prolific as Eagle OH MD Ford wells WV KY VA Utica/Point Pleasa
Slide 20: Utica/Point Pleasant Thickness and Reservoir Quality Comparison
Utica/Point Pleasant Thickness and Reservoir Quality Comparison A N. Coast Energy Newstar Energy D&M A’ C. Shaney #1 Toalston #1 Lark #1 Harrison Co. (near Buell 8H Well) Carroll Co. (near Mangun 8H Well) Mercer Co. Cross Section 24 miles 48 miles A’ - 300’ CHK-Mangun 8H 3.1 MMCFG/D + 1015 BBL/D Rex
Slide 21: Utica/Point Pleasant Volatile Condensate Single Well Type Curve
Utica/Point Pleasant Volatile Condensate Single Well Type Curve Play: Utica/Point Pleasant Estimated Avg. Well Cost: $6.5-$7.5 MM Estimated EUR: 1,250 MBoe Target Acreage: 150,000-250,000 acres Est. Spud-to-Production: 90 days Rig Count Estimate: 2Q12: 1 2H12: 2 Wells Planned: 2012: 8-10 Oil: EUR 15
Slide 22: Woodbine Overview
Woodbine Overview Upper Cretaceous section ~40% silica Target Acreage: 150,000 – 250,000 and clastics = deliverability Regional studies indicate: 10%+ porosity Current IP’s 3-4x higher vs. recent past TX Geologically analogous to the Eagle Woodbine Ford in South Texas Horizontal drilling and complet
Slide 23: Woodbine Hydrocarbon System
Woodbine Hydrocarbon System Deltaic depositional system Woodbine sands charged with Eagle Ford sourced oil Multiple Woodbine sand lenses 6,500’-11,500’depth Play 1: High porosity, high storage capacity sands Play 2: Downdip, permeability trapped sands Woodbine Isopach Eagle Ford Source: Internal res
Slide 24: Woodbine Single Well Type Curve
Woodbine Single Well Type Curve Play: Woodbine Estimated Avg. Well Cost: $5.5-$6.5 MM Estimated EUR: 467 MBoe Target Acreage: 150,000-250,000 acres Est. Spud-to-Production: 60-90 days Rig Count Estimate: 2Q12: 1 2H12: 2 Wells Planned: 2012: 10-15 Oil: EUR 350-450MBO NGL: EUR 25-35MBNGL Gas: EUR 200-
Slide 25: Wilcox Overview
Wilcox Overview Oil-prone reservoir with significant Target Acreage: 50,000100,000 – associated gas and NGLs Production rate limits and commingling restrictions removed from Louisiana regulations 3D seismic essential to success LA 100 sq. mile 3D shoot in progress 36 sq. miles of existing 3D to be m
Slide 26: Wilcox Log Section
Wilcox Log Section Upper Wilcox Eocene age tight sandstones Bivens N. Bivens N. Bancroft 18.2 MMBO Target depths range from 8,500’-15,000’ 6.4 BCFG Middle Wilcox Bearhead Creek Focus -Middle and Lower Wilcox S. Bearhead Creek Fields (11,000’-15,000’) W. Gordon 7.7 MMBO 32 BCFG Structurally controlle
Slide 27: Wilcox Single Well Type Curve
Wilcox Single Well Type Curve Play: Wilcox Estimated Avg. Well Cost: $7.5-$8.5 MM Estimated EUR: 510MBoe Target Acreage: 50,000-100,000 acres Est. Spud-to-Production: 60-90 days Rig Count Estimate: 2Q12: 1 2H12: 1 Wells Planned: 2012: 4-6 Oil: EUR 150-250MBO NGL: EUR 100-200MBNGL Gas: EUR 1-2BCF Not
Slide 28: Mississippian Lime Overview
Mississippian Lime Overview Initially developed using vertical wells Target Acreage: 50,000100,000 - (1) Carbonate reservoir (high permeability) Predominately oil production KS Shallow drilling depths (4,000’- 6,000’) Mississippian Lime 200’-500’ gross thickness Technology reinvigorating the play Sc
Slide 29: Mississippian Lime Log Section
Mississippian Lime Log Section Chat High porosity (20-30%) High permeability Associated with karsting High fluid volumes Dense limestone High porosity tripolitic chert lenses embedded within the low porosity/permeability dense Horizontal wells with multi- stage fracs connect high porosity lenses 29
Slide 30: Mississippian Lime Single Well Type Curve
Mississippian Lime Single Well Type Curve Play: Mississippian Lime Estimated Avg. Well Cost: $2.5-$3.5 MM Estimated EUR 175 MBoe Target Acreage: 50,000-100,000 acres Est. Spud-to-Production: 60-90 days Rig Count Estimate: 2Q12: 1 2H12: 2 Wells Planned: 2012: 8-10 Oil: EUR 100-150MBO NGL: EUR 20-30MB
Slide 31: Exploratory Liquids Rich Plays - undisclosed
ExploratoryLiquidsRichPlays- undisclosed Targeting 225,000 3–75,000 acres in aggregate Two unconventional plays (100,000150,000 – acres each) One conventional play (25,00075,000 – acres) Will drill in all three plays in 2012 8-12 wells Oil and liquids-rich targets Prospect identification driven by t
Slide 32: Investment Highlights
Investment Highlights Proven Management Team With Significant Ownership Stake Technical Bias With Extensive Resource Play Experience Attractive Liquids-Rich Asset Portfolio With Compelling Economics Positioned For Significant Near-Term Reserve And Production Growth ExcellentTrackRecordFor Managing C
Slide 33: HK to Acquire GEOI
HK to Acquire GEOI “Oily” (69% Liquids) Strong growth profile (+25% in 2012) Adds two established liquids rich resource plays Austin Chalk potential Solid production base Immediately accretive New HK shareholders 33
Slide 34: Appendix
HALCON RESOURCES Appendix
Slide 35: Pro Forma Production and Reserves (69% Liquids)
Pro Forma Production and Reserves (69% Liquids) 2011 Average Net (1) Daily Production Proved Reserves Boe/d Full Year 4Q Oil Gas NGL Equiv. % % Total PV10(1) % Total MBbls MMcf MBbls Mboe Oil/NGLs % PD Reserves ($MM) PV10 Resource Style Bakken 1,560 1,998 6,264 3,040 273 7,044 93% 59% 13% $183.9 18%
Slide 36: Pro Forma Derivative Summary
Pro Forma Derivative Summary FY 2012 FY 2013 FY 2014 OIL OIL OIL Volume Ceiling / Floor Floor Volume Ceiling / Swap Floor Floor Volume Ceiling / Floor Floor (Bbls) Swap Price* Purchased* Sold* (Bbls) Price* Purchased* Sold* (Bbls) Swap Price* Purchased* Sold* Three-Way Collars 400,500 $104.89 $87.11
Slide 37: Halcón/RAM Transaction Summary
Halcón/RAM Transaction Summary Why RAM Energy Resources? Solid platform Concentrated ownership Stock Listing Oil levered Simple balance sheet Modifications Attractive valuation New Senior Management and Board Ticker change to HK (effective 2.9.12) Reverse stock split (1:3) (effective 2.10.12) New cr
Slide 38: Contact: Scott Zuehlke, Director of Investor Relations
Contact:Scott Zuehlke, Director of Investor Relations 1000 Louisiana St., Suite 6700, Houston, TX 77002 832-538-0314 szuehlke@halconresources.com www.halconresources.com NYSE: HK