Global Leader in International Oil and Gas Industry News

posted in:

GMX Resources Inc. new oil and natural gas hedges secured workover rig work has begun

Friday, Mar 30, 2012

GMX RESOURCES INC., (NYSE:GMXR), today announces that the Company has entered into agreements with two hedge providers to protect its cash flow on oil and natural gas production. The Company also announces today that the new build fit-for-purpose workover rig arrived in North Dakota and work has commenced on Company's wells.

Michael J. Rohleder, President said, "The $106.40 oil swap for 2012 and
2013 and three-way collar with downside protection starting at $100 for
2014 provides an initial tranche of cash flow protection for us at the high end of the current market range. Our natural gas swaps covering a significant portion of our estimated production also ensure a premium to today's market including a $0.08 Houston Ship Channel basis hedge. We plan to add additional hedge protection as new oil production comes on line and we will work to optimize these positions so the company receives the most favorable economics we can create through the use of these financial instruments."

GMXR is a resource play rich E&P company. Oil shale resources are located in the Williston Basin, North Dakota & Montana targeting the Bakken Petroleum System and in the DJ Basin, Wyoming targeting the Niobrara Petroleum System; both plays are estimated 90% oil. Our natural gas resources are located in the East Texas Basin, in the Haynesville/Bossier gas shale and the Cotton Valley Sand Formation, where the majority of our acreage is contiguous, with infrastructure in place and mostly held by production. We believe these oil and natural gas resource plays provide a substantial inventory of operated, high probability, repeatable, organic growth opportunities. The Company's multiple basin strategy provides flexibility to allocate capital to achieve the highest risk adjusted rate of return, with both oil and natural gas resources throughout our portfolio. Please visit for more information on the Company.


To access over 2,700 of the latest oil projects from across the world visit Projects OGP for free trial today

posted in:

Other Oil & Gas News

AVEVA provides Integrated Engineering & Design solutions to TOTAL E&P Nigeria Limited 18-04-2014
Oando Energy Resources increases deposit for acquisition of Nigerian Upstream Oil and Gas Business of ConocoPhillips 18-04-2014
Linde will be exclusive hydrogen supplier for the Shell Eco-marathon in Houston 18-04-2014
Technip wins Umbilical contract for Kaombo project in Angola 18-04-2014
Forest Oil announces first quarter 2014 earnings release date and teleconference 18-04-2014
Saipem announces awarded FPSO contracts in Angola worth more than $4 billion 18-04-2014
Endeavour announces settlement of SM Energy litigation 18-04-2014
Drilling and production update 18-04-2014
Shell announces Malaysia deep-water gas discovery 18-04-2014
Meeting between the Ukrainian Minister of Energy, Yuri Prodan, and Eni's CEO Paolo Scaroni 18-04-2014