GMX Resources shares fall 33 percent
GMX Resources shares dropped 33 percent after the company announced increased proved reserves.
GMX Resources said Monday its producing reserves in the oil-rich Bakken Shale jumped 430 percent in 2012 while its proved undeveloped reserves in the area skyrocketed more than 1,300 percent.
Wall Street, however, was unimpressed, sending the Oklahoma City energy company's stock price tumbling more than 33 percent, down $1.67 to $3.29 on the New York Stock Exchange.
A GMX spokesman declined to comment Tuesday.
The Oklahoma City energy company said it ended 2012 with total estimated proved reserves of 35.6 million barrels of oil equivalent. Producing reserves in the Bakken in North Dakota and Montana increased to 1.7 million barrels of oil equivalent, up 430 percent from the end of 2011. The company's proved undeveloped reserves in the area jumped 1,321 percent to 7.1 million barrels of oil equivalent.
Based on U.S. Securities and Exchange Commission pricing estimates, the company's proved reserves have an estimated present value of just more than $80 million, GMX said. Using New York Mercantile Exchange strip prices, however, the reserves are worth more than $194 million, the company said.
GMX also said Tuesday that it had $46 million in cash available at the end of 2012, including $16.8 million it paid this month on maturing senior notes. GMX said it has sought additional financing, but did not receive enough interest from potential investors.
“The company is continuing to evaluate and finalize its 2013 budget for capital expenditures based on its available liquidity,” GMX said.
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