GMX Resources (GMXR) announced two more purchases of acreage in the Williston Basin that are prospective for the Bakken formation. The company is buying a total of 26,087 net acres in North Dakota and Montana, including a purchase announced on January 20, 2011.
GMX Resources is purchasing 8,290 net Bakken acres in the most recent two transactions at an average purchase price of $4,665 per acre. The company will pay 67% of the purchase price through the issuance of common stock, with the amount of stock based on the average price prior to the closing of the deal.
GMX Resources will have an average net revenue interest of 82% in this acreage, and in most cases, the leases have three year terms with two year renewal options.
The Bakken transaction announced on January 20, 2011, consists of 17,797 net acres at an average purchase price of $1,000 per acre. The company will pay 90% of the purchase price through the issuance of common stock.
GMX Resources said that the Bakken acreage is located in McKenzie, Stark, Dunn, Williams and Billings Counties in North Dakota; and in Richland, Sheridan and Wibaux Counties in Montana.
GMX Resources will spend $31.5 million over the next two years to start its development program in the Bakken. The company will use $16.6 million in 2011 and $14.9 million in 2012.