GMX Resources (GMXR) update

Yesterday, GMX Resources (ticker: GMXR) filed an 8-K informing the public of a new presentation they had put together.  The stock of this small E&P has been one of the better performers this year posting a gain of greater than 110%.  The core area of operations is in the North Carthage Field in East Texas.  With their partner Penn Virgina (ticker: PVA), GMXR drills wells searching for the Cotton Valley Sands.   

Key points from new presentation:

• 12% increase of net acreage in core area to 13,450
• • 30% working interest (WI) area up 22% to 2,642
  • 50% WI area up 6% to 3,200
  • 100% WI area up 12% to 7,266
• 11% increase in potential net wells to 329  (at 40 acre spacing)
• • 30% WI area up 13% to 60 wells
  • 50% WI area up 1% to 79 wells
  • 100% WI area up 14% to 190 wells
• 24% increase in probable reserves (80 - 160 acre spacing)
• 29% increase in possible reserves  (40 acre spacing)
• Timing issues with additional rigs, about a month off
• 4 less wells to be drilled in 2005, still will have three rigs running in second half
• lowered the average amount of time from spud to sales to 36 days (2Q05) from 48 days (1Q05)
• New Mexico well a success with completion to begin in September

Comment: Nice adds to acreage...timing issues with rigs are common in area...Added high quality rig in core area...Nice to see New Mexico...Steady as she goes