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GMX Resources Inc. Message Board

  • collinssalau collinssalau Apr 29, 2013 12:42 PM Flag

    Joe, Gmxr total oil well in production

    Since they began switching to oil from natural gas in 2011, how many oil wells are operating right now and bringing in oil?

    How long/ days does it take to complete drilling an oil well?


    I am hoping they can have 10 oil wells functioning by November 2013, which will bring in $700 million plus yearly and the stock price might shoot up past $25 (range between 50 -150).

    For those of you saying chapter 11 wasn't needed. It was needed to stop payment, reduce future payment while using all those cash plus DIP to drill more wells to increase revenue

    Sentiment: Hold

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    • Collins,
      GMXR has 11 ND opt wells producing as of March 1, and two coming in April. It also has more than a dozen non-opt ND wells producing. If just figure from spud to finish lateral bore, GMXR has experienced less than 30 days on the avg. The completion process varies since the in-hot-demand perf & frac crews are not always available at reasonable prices.

      The current production as of late march was around 1000 BOPD, this will not bring in $700M a year. The figure of $700M at YE is the minimum asset auction proceeds for GSO/Blk & Chatham to break even.

      • 2 Replies to joechentva
      • Joe, doing the math w your 1, 000 number.

        1, 000BBL/day x 365days x $87 (Avg going price in ND) x 50% margin = 15, 877, 500 , enough to pay for two 8M holes. I suppose that by using the time value of money, one could have easily predicted this BK 6 months before it happened. Yes my friend, this was certainly a (premeditated) prearranged BK.

        I use 50% margins estimate to cover, operating cost, fed and state taxes, 18% royalty paid to most mineral owners, salt water disposal cost, trucking oil or pipeline cost, and the fact that GMXR does not have 100% working interest in all their wells.

      • is it 1000 barrels per day on each wells (1000 * $100 per barrel*30 days * 11 oil well= $33million a month. X 12 months = 400million). I am not talking about natural gas since it is negative money. I am talking of green back $$ oil money


    • They have 20 wells in the Bakken, 9 are A (Active) status and 11are permitted or drilled in the past 6 months, still classified CONFIDENTIAL status, most of which are producing, so there you have it, not only 10 but possibly 15, and no dry holes. This gives you an idea of their succesful and agressiive drilling plan..... drilling themselves into Ch-11 BK thus seems almost deliberate.

      For indepth details, Gooogle to NDIC , the ND oil /gas division, wher you can search GMXR to see how many wells they have active, designated w the letter A, and those marked CONFIDENTIAL for the first 6 months. If you search the Daily Activity reports for GMXR you can find each well that is started and when completed, and the 24 hour IP (initial production) is reported there even though well is confidential status for 6 months. I use the GIS map server to print a wall map which I annotate with all the GMXR daily activity. I also word search the monthly Dockets, key word GMXR, where you can see how many well they permit, 4 wells from each pad recently. All this is free, but it takes awhile to learn how to use the system.

      I recently subscribed to the next level of paid services for $50/year. I now have access to every individual well in the state. Soon I plan to start totaling GMXR production each month both YTD and since April 1, and will report the tally on this board.

      Drilling time is 30 days at cost of 8 million. It takes about a week to move rig. This is why they got rid of H&P #255, and were negotiating for two walking rigs (rumor has it). My guess is that a walking rig and 4 wells will shaves 1M off drilling and time savings. The new permit trend in ND is now 7 wells per pad.