GMXR Update -- SeekingAlpha

GMXR on SeekingAlpha.com link here.

On May 7, 2012, GMXR reported results from its fifth operated well in McKenzie County. The Akovenko 24-34-1H (66% WI), achieved a peak rate of 1,483 boepd. GMXR is still awaiting the completion of the fracture stimulation job on its sixth operated well in McKenzie County, North Dakota. As we mentioned in our previous write-up, "GMX Resources "Walking-the-Walk" - Company Delivers Positive Oil Well Results out of the Bakken/Three Forks Formations," GMXR's fourth operated well, the Lange 11-30-1H (89% WI), achieved a company record peak production rate of 2,549 boepd.

All together, these four operated wells place GMXR's average peak flow rate for its McKenzie County wells at 1,855 boepd. On the non-operated side, the company achieved strong completions on its first two non-operated Bakken wells as well with the Marsh 21-16TFH (Whiting-operated; 2% WI) and Taboo 1-25-36H (Slawson-operated; 25% WI), which flowed back at average IP rates of 2,694 boepd gross and 1,436 boepd gross, respectively.

GMXR-operated wells:

• 21002, GMXR, Wock 21-2-1H, New Hradec,
• 21213, GMXR, Frank 31-4-1H , New Hradec,
• 21214, GMXR, Frank 31-4-2H,  New Hradec,
• 21540, GMXR, Evoniuk 21-2-1H,  Tree Top,
• 21545, GMXR, Akovenko F24-34-2H,  Ranch Creek,
• 21545, GMXR, Akovenko 24-34-1H; Beicegel Creek; in the southeast corner of McKenzie County, not in the bull's eye of the Bakken; in a fairly quiet area of the Bakken
• 21582, GMXR, Lange 11-30-1H; Bennett Creek; also in the southeast corner of McKenzie
• 21589, DRL, GMXR, Johnston 31-4-1H, wildcat
• 21892, loc, GMXR, Frank 31-3-2H, New Hradec,
• 21893, loc, GMXR, Frank 31-3-1H, New Hradec,
• 21947, conf, GMXR, Fairfield State 21-16-1H,  St Demetrius,
• 22048, conf, Franks Creek Federal 24-8-1H, wildcat
  22065, conf,  Lower Thirty Federal 21-4-1H, wildcat
• 22207, conf, GMXR, Basaraba 34-35-1H, wildcat,

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Additional information per request (see comment):

• 21540, 521, GMXR, Evoniuk 21-2-1H, Tree Top field, Three Forks, s10/11; t1/12; cum 6,185 bbls as of 3/12; 30-stage frack; 2.8 million lbs proppant; sand; the Tree Top field is located in northern Billings County, just south of McKenzie County; there doesn't appear to be much Bakken activity there, but there are a slew of active and abandoned Madison vertical wells in this area. A number of the Madison wells were very, very good wells.

From the geologist's drilling report:

Gas recorded at the upper Three Forks was 1,337 units (high/good). While drilling it was decided to change from a Three Forks target to a middle Bakken target; gas in the middle Bakken averaged 1400 - 1700 units with shows over 2,500 units (very good). But the middle Bakken was very, very thin in this area, about 10 feet thick. It was difficult to stay in the middle Bakken; it had thinned to 3 feet. They went back into and stayed in the Three Forks with gases ranging from 1100 - 1500 with shows over 2,600 units. Difficult to stay in the seam. Near the end of drilling, gases ranged from 1700 - 1900 units with shows well over 3,000 units.

Conclusion:

The well was successfully drilled to a depth of 20,600 feet ....

Future wells in this area should target the middle portion of the Middle Bakken or the top of the Three Forks six (6) feet below the Lower Bakken Shale, as the amount of gas and oil seem to increase in these two intervals. Care should also be taken as to adjust for rapid changes in dips of the formation and to possible regional thinning of different zone within the Middle Bakken and Three Forks. s/wellsite geologist

Production data:
Monthly Production Data

Pool	Date	Days	BBLS Oil	Runs	BBLS Water	MCF Prod	MCF Sold	Vent/Flare
BAKKEN	3-2012	4	129	509	301	198	0	198
BAKKEN	2-2012	29	3639	3542	6537	4567	0	4567
BAKKEN	1-2012	9	2417	1839	10483	3713	0	3713