Small, but fast-growing, independents strutted their stuff before about 300 attendees at the IPAA Small-Cap Oil & Gas Investment Symposium (OGIS) in Hollywood, Florida, recently. 2005 was a fantastic year for most small-caps, and 2006 promises more of the same. Investors and analysts heard many growth stories, most based on maximizing gas-resource plays such as in the Barnett Shale, Cotton Valley sands and Travis Peak formations. GMX Resources Inc. of Oklahoma City was one. Last year, it graduated from an OTC listing to the Nasdaq National Market. Its market cap is now about $480 million on the strength of its land position in several resource plays in East Texas. Rapid production growth may be in the offing, as this year GMX plans to increase its leasing, drilling and production budget to $93 million versus $39 million in 2005. That could translate into as many as 47 net wells drilled, versus 13 last year. "We are focusing this year on production growth as our priority," said Ken Kenworthy Jr., chairman, president and chief executive officer. At year-end 2005, the company had 160 billion cubic feet of proved reserves, a 140% increase from the prior year, according to engineering firm Sproule & Associates. 2005 was a break-out year for Houston-based Whittier Energy Corp. also. It listed on the Nasdaq NMS on December 27, providing additional liquidity, said president and CEO Bryce Rhodes. Last June the company acquired Rimco Production Co., doubling its size.
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