GMX Resources Inc. new oil and natural gas hedges secured workover rig work has begun
Friday, Mar 30, 2012GMX 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 www.gmxresources.com for more information on the Company.
Source: GMX RESOURCES
To access over 2,700 of the latest oil projects from across the world visit Projects OGP for free trial today