Friday, June 15, 2012

A GMX Resources ($GMXR) Participated Well: The Logan 24-8H

Something else noteworthy from the most recent GMXR press release.

"An update on the non-operated wells follows: The Logan 24-8H well, in which the Company has an approximate 17% working interest, located in Sections 5&8 Township 148N Range 98W in McKenzie County, North Dakota, was successfully drilled and fracture stimulated by Burlington Resources. The Logan 24-8H was drilled into the Middle Bakken and produced a peak flow rate of 1,170 boepd."
According to the well data on the NDIC website, this well has had cumulative production of 1650 bbls: 1630 in the first 14 days, and then 20 in the next 29 days.

What the heck? If it was successfully completed and had that high of a peak flow rate, how come cumulative production is so low and dropped off so quickly?

And why doesn't GMXR comment on that in the press release? Is the NDIC data wrong? Is there a technical problem with the well that will soon be fixed? Or is this just a horrible well?

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