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GMX Resources Oil and Gas Exploration Production
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GMX Resources Inc as Oil and gas exploration and production company announced that it will lower its planned capital spending in 2011 to $152 million from a previously announced plan for $175 million.
GMX Resources said it plans to sublease three contracted rigs and operate just one rig starting in November and continuing until next June. GMX said it had already subleased one rig. Without the change, the company said its number of drilled but unfinished wells increase into next year.
GMX Resources said capital expenditures for this year would remain at $175 million but it would drill fewer rigs next year and reduce completed-well costs. The company believes it can drill more wells per rig — 10 instead of eight in a year by speeding up the drilling process.
GMX Shares, which looks for oil and gas in Texas, Louisiana and New Mexico, rose 16 cents, or 3.4 percent, to close at $4.88. The stock added 2 cents in after-hours trading.