GMX Resources Notes Latest Haynesville/Bossier Drilling Results
GMX Resources has announced the completion of the Holt 1H (formerly the K5 1H) Haynesville / Bossier horizontal ("H/B Hz") well with a 4,900 foot lateral and 12 fracture treatment stages and an initial 24 hour production ("IP") rate of 9.3 million cubic feet per day ("MMcfd") of gas, on a 25/64 choke and 4156 pounds of flowing casing pressure ("FCP") into the sales line. The last six H/B Hz wells the Company has completed have an average IP rate of 9.0 MMcfd, and the H/B Hz wells with lateral lines greater than 4000 feet have collectively averaged more than 5.4 MMcfd in the first 30 day period.
In addition to its first eight completed H/B Hz wells, the Company has successfully drilled the TJT Simpson 1H H/B Hz well with a 4,750 foot lateral, which is scheduled for fracture treatment in late August 2009. The Company's Verhalen "B" 1H H/B Hz well is currently drilling and is expected to be completed in August 2009.
GMX Resources is a 'Pure Play', E & P Company with one of the most leveraged Haynesville / Bossier Horizontal Shale Operations in East Texas. The Company has 465 Bcfe in proved reserves (YE2008); 94% of which are natural gas. The Company's proved reserves are 81% operated and consist of 762 gross / 521 net H/B Hz 80 acre un-drilled locations; 8 gross / 8 net H/B producers, and 324 gross / 186.9 net Cotton Valley Sand ("CVS") producers; 2,657 gross / 1,974 net CVS 20 acre un-drilled locations; and 45 gross / 37.5 net Travis Peak / Hosston Sands & Pettit producers. These multiple resource layers provide high probability and the potential for repeatable, organic growth.