Oklahoma

Oklahoma City-based GMX Resources Inc. Monday followed cross-town independent Chesapeake Energy Corp. in announcing plans to drastically reduce capital expenditures (capex) in 2009. The junior independent, considered a pure-play gas producer that has earned success in the emerging Haynesville Shale and Bossier Sands of Louisiana and East Texas, plans to cut its projected spending by 45%.

Forest Oil Corp. has agreed to pay $892 million in cash and stock to privately held Cordillera Texas LP for a package of natural gas-weighted properties in Oklahoma, East Texas and North Louisiana that now produce around 34 MMcfe/d. Total reserves are estimated at 350 Bcfe, which are 36% proved developed.

There’s more than one way to rescue the U.S. balance of payments deficit and Oklahoma’s own Aubrey McClendon, CEO of Chesapeake Energy, may have hit on it with his idea to export increasingly abundant North American natural gas, shipping it over the oceans in liquid form.

Chesapeake Energy Corp. kept its U.S. natural gas machine churning 24/7 in 2Q2008, and the results were enviable.

There’s more than one way to rescue the U.S. balance of payments deficit and Oklahoma’s own Aubrey McClendon, CEO of Chesapeake Energy, may have hit on it with his idea to export increasingly abundant North American natural gas, shipping it over the oceans in liquid form.

Chesapeake Energy Corp. kept its U.S. natural gas machine churning 24/7 in 2Q2008, and the results were enviable.

Oklahoma City-based Quest Resource Corp. (QRCP) has completed its purchase of privately held PetroEdge Resources for $142 million, which will give it 78,000 net acres of Appalachian Basin acreage with estimated proved reserves of 99.6 Bcfe. PetroEdge’s current net production was around 3.2 MMcfe/d.

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.

Don’t expect a joint venture with Plains Exploration & Production Co. (PXP) to explore the Haynesville Shale to be Chesapeake Energy Corp.’s last big announcement. The Oklahoma City-based independent is pursing minority partners for projects in the Fayetteville and Marcellus shales — and possibly others — CEO Aubrey McClendon said Wednesday.