Haynesville Shale

GMX Resources Issues Haynesville Shale Update

GMX Resources (GMXR) issued an update on its operations in the Haynesville Shale, including data on production and well costs.

GMX Resources brought eight wells onto production during the fourth quarter of 2010.  These wells had an average lateral length of 5,356 feet and an average cost of $8.9 million.  The company indicated that this was a decline in average cost of $500,000 per well.

GMX Resources reported that the Mia Austin #6H Haynesville Shale well produced an average of 7.24 million cubic feet of natural gas per day during the first sixty days.  The Bosh Heisman #17H well was recently drilled and completed into the Haynesville Shale with a lateral length of 6,164 feet and a fifteen stage hydraulic fracturing operation.

GMX Resources - Haynesville Shale Summary - First Quarter 2010

GMX Resources (GMXR) issued an operational update and provided information on its activities in the Haynesville Shale. GMX Resources had a total of 14.9 net producing wells as of 3/31/2010, and 50% of the production from these wells came from the Haynesville Shale formation.

GMX Resources said that 2 Haynesville Shale wells were brought to sales during the first quarter of 2010, and 2 other completions were delayed due to a lack of hydraulic fracturing capacity.

Q1 – 2010 Well Summary (IP Rates)

Mia Austin #1H - 14.1 million cubic feet of gas per day.

Verhalen E #1H – 8.3 million cubic feet of gas per day.

Q2 – 2010 Well Summary (IP Rates)

Bosh #19H – 10.1 million cubic feet of gas per day.

Verhalen D #3H – 11.1 million cubic feet of gas per day.

Blocker Heirs #20H – 14.4 million cubic feet of gas per day.

Verhalen E #6H – 11.1 million cubic feet of gas per day.

Blocker-Ware # 8H – Completion process started 5/7/2010

Well Costs

GMX Resources said that the first 6 Haynesville Shale wells had an average cost of $8.2 million to drill and complete. The company also raised its estimated ultimate recovery (EUR) from 5.3 to 6.5 Billion cubic feet equivalent per well.

GMX Resources Reports Completion Of Blocker Heirs #20H Haynesville Shale Well

GMX Resources (GMXR) reported the completion of a well in the Haynesville Shale. The company said that the Blocker Heirs #20H produced at an initial production rate of 14.4 million cubic feet of gas per day.

GMX Resources said that the Blocker Heirs #20H was drilled with a 4,450 foot lateral, and completed using an 11 stage hydraulic fracturing operation.

The most recent Haynesville Shale well for GMX Resources was the Mia Austin #1H, which had an initial production rate of 14.1 million cubic feet of gas per day.

GMX Resources plans on drilling 5 more Haynesville Shale horizontal wells in the second quarter of 2010. The wells in estimated order of dates of completion are:

Verhalen D #3H – April 2010

Verhalen E #6H – April 2010

Blocker Ware #8H – Second quarter of 2010

Mercer #11H - Second quarter of 2010

Verhalen F #1H - Second quarter of 2010