Tuesday, January 13, 2009

GMX - First Haynesville Well

I neglected to mention GMX Resources' late November announcement of the company's first Haynesville well (they call the field Haynesville/Bossierville because they drill more in Texas where the formation tends to be called Bossierville).

From their press release: "The Callison 9H (100% WI) located in the William Smith a21, Harrison County, Texas has the Company's shortest planned lateral of 2,200 feet. The well was placed on production November 20th and is currently producing at a stabilized rate of 7.7 Mmcf/d, on a 22/64" choke with 5,200 pounds flowing casing pressure. The completion consisted of an eight stage fracture treatment. "We have budgeted 2009 based on a beginning production rate of 3.4 Mmcf/d," stated Ken Kenworthy, CEO of the Company.

"The Company is currently drilling two H/B horizontal wells. Completion of the Bosh 11H and the Baldwin 17H will take place 1Q09. A fourth H/B horizontal well is expected to spud within two weeks... The next 16 H/B horizontals are expected to average a 3,800 foot lateral and 11-12 stages of fracture treatments."

In a later release, GMX noted that the company had cut its capital budget 45% to $220 million. Because of this cutback GMX reduced its expected 2009 Haynesville wells to 27 from 45.

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