(Source: PrimeNewswire)
OKLAHOMA CITY, Sept. 29, 2009 (GLOBE NEWSWIRE) -- GMXR (Nasdaq:GMXR) (please visit www.gmxresources.com to view the latest corporate presentation) today announced Michael J. Rohleder, President and James A. Merrill, CFO will present at the IPAA OGIS San Francisco Conference on September 30, 2009 at 4:10 PM (PDT) in the Presidio Room of the Palace Hotel located at 2 New Montgomery Street, San Francisco, CA. The presentation will be available via webcast from the following link(http://www.vcall.com/IC/newCoLocated.asp?ID=149924). This link is also available on the GMXR website under the investor relations tab. A copy of the IPAA presentation will be posted on the Company's website Tuesday, September 29, 2009. The Company's production for the three months ended September 30, 2009 is estimated to be 3.4 billion cubic feet equivalent ("Bcfe") of natural gas, which is in-line with previous Company guidance. The third quarter of 2009's estimated production is a 2% increase from 3.3 Bcfe in the second quarter of 2009 and a 4% decrease from 3.5 Bcfe in the third quarter of 2008. Since the second quarter of 2009, the Company has been operating a one rig Haynesville/Bossier Horizontal ("H/B Hz") drilling program and has been able to maintain stable production with a 50% reduction in CAPEX.
Operational Update
The 30-day average for the Company's Verhalen "B" 1H H/B Hz well (5,270' lateral and 15 fracture treatment stages), which was completed in August and on the sales line September 1, 2009, was 5.7 million cubic feet of gas per day ("mmcfgd") while on a variable choke. The Company also completed the Holt 1H (formerly the K5 1H) H/B Hz well during the third quarter with a 4,900 foot lateral and 12 fracture treatment stages; averaging 5.7 mmcfgd for the first 30 days, on a variable choke.
We now have 7 long laterals that have produced from 30 days to 210 days. The well production plots are in line with corporate decline curves for estimated ultimate recoveries (EUR) of 5.4 - 6.5 Bcfe, per well; available on GMXR web site. In addition to its first nine completed H/B Hz wells, the Company has successfully drilled the Verhalen "C" 1H H/B Hz well and it is expected to be completed in October 2009. Drilling and completion well costs for the Verhalen "C" 1H are expected to be below $7 million, which will be the lowest cost H/B Hz the Company has completed to date.
