Mon, Jul 28, 2014, 10:43 PM EDT - U.S. Markets closed

Recent

% | $
Click the to save as a favorite.

GMX Resources Inc. Message Board

  • joechentva joechentva Dec 17, 2012 4:05 AM Flag

    GMXR ND McKenzie 3 township leases future potential flowing BOPD.

    Since the switch of well completion from the weak fast sliding sleeve method to the old powerful slow perf & plug method, the effective radius of artificial fracking can be significantly increased. This has resulted an increase of IP and later flow rates by more than 30%.

    The 3 townships, 145N99W, 146N99W & 147N99W, are sandwitched between Little Mo anticline and the west shear plane of Billings Nose uplifts. GMXR has 3 producers completed by the sliding sleeve, Akovenko-1H IP 1483 BOPD; Johnston-1H IP 1480 BOPD; Lange-1H IP 2550 BOPD. The new Akovenko-2H was perf & plug completed, IP 3030 BOPD. If the Lange-2H (parallel to 1H) gets IP 3000 BOPD, and Heiser-1H does the same, then these 3 townships can be estimated as 500 BOPD/well steady flow rate field.

    There are 17 GMXR units in these 3 townships, or a minimum of 34 long lateral wells. If there is sufficient funds to use MULTIPLE rigs next year. After 3+7=10 wells started production, the steady flowing rate can be greater than 2500 BOPD, with 24 wells to go. At the current price of $140K/BOPD flowing production, the future market value of these leases could be $300M by the end of 2013.

    That would be Akovenko -1H, -2H; Lange-1H & -2H; Johnston -1H; Heiser-1H; plus 4 more new wells.
    The CVS sale of $69M can fund the existing drilling plan (Lange & Heiser in McKenzie, 2 Fairfields in Billings, 1 test well in Niobrara, 1 well each in H/B & CVS). The 4 more new wells in Mckenzie need to find funding.

    By using double-well pads, each new well will cost around $8M in McKenzie, A $32M additional investment can boost the lease values in these 3 townships to $300M.

    In addition, there are 16 Mckenzie units in townships 148N98W, 146N98W & 145N98W, a minimum of 32 long lateral wells. CLR and Burlington have de-risked these leases. If there is sufficient funding to drill 8 new wells, it can achieve 2500 BOPD steady flowing rate. That would be another $300M value.

 

Trending Tickers

i
Trending Tickers features significant U.S. stocks showing the most dramatic increase in user interest in Yahoo Finance in the previous hour over historic norms. The list is limited to those equities which trade at least 100,000 shares on an average day and have a market cap of more than $300 million.