OKLAHOMA CITY, May 7, 2012 (GLOBE NEWSWIRE) -- GMX RESOURCES INC., (NYSE:GMXR), today announces that the Company has successfully drilled and completed its fifth operated horizontal Bakken well, the Akovenko 24-34-1H, 66% working interest, located in Sections 3&10 Township 145N Range 95W in McKenzie County, North Dakota. The Akovenko 24-34-1H was drilled to a measured depth of 19,927' with a lateral length of 8,305'. It was completed as a 31 stage frac Middle Bakken producer achieving a peak rate of 1,483 boepd @ 1,300 psi flowing casing pressure.
The Akovenko 24-34-1H follows last month's announcement of the Lange 11-30-1H which had a peak flow rate of 2,549 boepd and confirms our ability to successfully develop our oil resource. With completed well costs in the $8.0 to $8.5 million dollar range we are estimating that rates of return in our focus areas of McKenzie and Billings Counties to be 50-60%.
Michael J. Rohleder, President, said, "The Akovenko result is our fifth consecutive successful completion and continues to demonstrate the productivity of our acreage base. We now have an average peak flow of 1,855 boepd for our four McKenzie County wells. The Akovenko completed well costs were substantially less than our previous wells due to the fact that our drilling efficiency is better and the fracture stimulation costs are more competitive. Our next well, the Johnston, has completed the drilling phase in less time than the Akovenko and we expect the fracture stimulation costs to improve even more. Our 2012 capex budget is on target as is our production forecast."
GMXR is a resource play rich E&P company with development acreage in two oil shale resources in the Bakken (North Dakota / Montana) targeting the Bakken & Sanish-Three Forks and the DJ Basin (Wyoming) targeting the Niobrara Formation; both plays are 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 and 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 Bakken properties contain nearly 600 undrilled, 9,500' lateral length locations, 43 potential operated 1280-acre units and 197 operated locations, with between 45% and 100% working interest. The Niobrara properties contain 584 undrilled, 4,000' lateral length locations, 95 potential operated 640-acre units and 380 operated locations, with an average working interest of 70%. The Haynesville/Bossier and the Cotton Valley Sand locations include 253 net Haynesville/Bossier horizontal locations, and 83 net Cotton Valley Sand horizontal locations. The Company believes multiple basins and both oil and natural gas resource choices provide us with flexibility to allocate capital to achieve the highest risk adjusted rate of return on our portfolio. Please visit www.gmxresources.com for more information on the Company.
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This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. They include statements regarding the Company's financing plans and objectives, drilling plans and objectives, related exploration and development costs, number and location of planned wells, reserve estimates and values, statements regarding the quality of the Company's properties and potential reserve and production levels. These statements are based on certain assumptions and analysis made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes appropriate in the circumstances, including the assumption that there will be no material change in the operating environment for the Company's properties. Such statements are subject to a number of risks, including but not limited to the completion of announced acquisitions, commodity price risks, drilling and production risks, risks relating to the Company's ability to obtain financing for its planned activities, risks related to weather and unforeseen events, governmental regulatory risks and other risks, many of which are beyond the control of the Company. Reference is made to the Company's reports filed with the Securities and Exchange Commission for a more detailed disclosure of the risks. For all these reasons, actual results or developments may differ materially from those projected in the forward-looking statements.