Friday, August 7, 2009

GMX Resources to sell Endeavor Pipeline assets to Kinder Morgan

OKLAHOMA CITY - GMX Resources on Aug. 4 announced a letter of intent to sell an interest in its Endeavor Pipeline assets to Houston-based Kinder Morgan Tejas Pipeline for $40 million.
Selling the midstream natural gas transmission assets will provide capital to add a second H&P FlexRig3 to the Oklahoma City-based company’s Haynesville/Bossier horizontal development program in east Texas and northwest Louisiana.
The sale is expected to be completed within 45 days.
“This transaction will provide enough near-term liquidity for us to be able to activate another FlexRig3 in early October,” said Ken L. Kenworthy, GMX CEO.
GMX has 62,160 acres that are prospective for Haynesville/Bossier development providing 777 horizontal drilling locations.
GMX credits use of the first FlexRig 3 from Tulsa-based Helmerich & Payne for a reduction in drilling costs. Completed well costs for drilling four horizontal wells during the second quarter dropped 40 percent.

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