GMX Resources is seeking joint-venture partners in each of its Haynesville/Bossier shale and Cotton Valley sands undeveloped acreage positions, the company revealed in its year-end report.
Michael J. Rohleder, GMX Resources president says, "Our interest in exploring these ideas would be to address our liquidity needs for our proposed capital expenditure plans for 2011 and 2012, allowing us to get to a cash flow positive state. We are well hedged in 2011 and 2012 and, of course, any JV would increase the percentage of our production that is hedged."
GMX Resources holds 42,400 net Haynesville/Bossier acres of which 85% is operated. Total proved reserves are 115 billion cubic feet equivalent with 144 net drilling locations (829 Bcfe total resource potential). Virtually all acreage held by production.
In the Cotton Valley sands, GMX holds 62,500 gross acres (84% operated). Total proved reserves are 327 Bcfe with 1,092 drilling locations (885 Bcfe total resource potential).
The company is also considering options related to the potential sale of its 60% membership interest in Endeavor Gas Gathering LLC, formed in August 2009 to hold the GMXR gas-gathering system. Kinder Morgan holds 40%.
Contact Alan Van Horn, (405) 254-5839.
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