Density

When it comes to energy consumption, two — or more — can live more cheaply than one, according to a new study that blames low household density for the “overconsumption” of energy in America.

When it comes to energy consumption, two — or more — can live more cheaply than one, according to a new study that blames low household density for the “overconsumption” of energy in America.

Oklahoma City-based GMX Resources Inc. plans to begin a drilling program in its Haynesville Shale and Bossier Shale holdings during 3Q2008. At 80-acre density, GMX estimates it would have five years of development on its 27,500 net acres. GMX plans to bump up its capital spending in 2008 to $271 million from $195 million, which would allow it to drill up to four to six net horizontal wells in the shale acreage. The new capital expenditure budget includes acreage acquisition costs, infrastructure build-out and equipment upgrades in East Texas and northwestern Louisiana. The company also increased its 2008 guidance for discretionary cash flow to $100 million, up from $80 million. Revenue is now forecast at $140 million, down from $125 million. In addition, production is seen to increase to 7.8 Bcfe in the second half of 2008 and is forecast to be 13.8 Bcfe for the full year. Daily production rates are expected to be 60 MMcfe/d by year’s end, up from previous guidance of 42 MMcfe/d.

The Wyoming Oil and Gas Conservation Commission has approved 20-acre-density drilling of Lance Pool wells on Questar’s Pinedale Anticline acreage in southwestern Wyoming. The decision allows the company to drill more than 100 additional wells and could lead to a significant expansion of its gas reserves, which prompted some analysts to boost their stock price targets on the company last Wednesday.

The Wyoming Oil and Gas Conservation Commission has approved 20-acre-density drilling of Lance Pool wells on Questar’s Pinedale Anticline acreage in southwestern Wyoming. The decision allows the company to drill more than 100 additional wells and could lead to a significant expansion of its gas reserves, which prompted some analysts to boost their stock price targets on the company Wednesday.