GMX RESOURCES INC., announces that the Company has successfully drilled and completed its fifth operated horizontal Bakken well, the Akovenko 24-34-1H, 66% working interest, located in Sections 3&10 Township 145N Range 95W in McKenzie County, North Dakota. The Akovenko 24-34-1H was drilled to a measured depth of 19,927' with a lateral length of 8,305'. It was completed as a 31 stage frac Middle Bakken producer achieving a peak rate of 1,483 boepd at 1,300 psi flowing casing pressure.
The Akovenko 24-34-1H follows last month’s announcement of the Lange 11-30-1H which had a peak flow rate of 2,549 boepd and confirms our ability to successfully develop our oil resource. With completed well costs in the $8.0 to $8.5 million dollar range we are estimating that rates of return in our focus areas of McKenzie and Billings Counties to be 50-60%.
Michael J. Rohleder, President said “the Akovenko result is our fifth consecutive successful completion and continues to demonstrate the productivity of our acreage base. We now have an average peak flow of 1,855 boepd for our four McKenzie County wells. The Akovenko completed well costs were substantially less than our previous wells due to the fact that our drilling efficiency is better and the fracture stimulation costs are more competitive. Our next well, the Johnston, has completed the drilling phase in less time than the Akovenko and we expect the fracture stimulation costs to improve even more. Our 2012 capex budget is on target as is our production forecast.”