Collins Stewart Boosts Price Target on GMX Resources (GMXR) to $120 on Haynesville Play

July 2, 2008 4:00 PM EDT

Collins Stewart raised its price target on GMX Resources Inc. (Nasdaq: GMXR) from $86 to $120 due to a re-evaluation of the recoverable gas in the company's Haynesville Shale play after Chesapeake's news.

The firm said, "Our new target includes 2.3 million additional shares related to the dilution from the company's convertible note. Our previous $86 target included a Haynesville valuation based on 150 Bcf of gas in place per 640 acres, a 120 acre spacing and a per well EUR of 6 Bcf.. We had assumed that GMX would be able to drill 75% of the potential locations on its 27,500 Haynesville acreage position.
Yesterday's announcement by Chesapeake Energy (CHK) has provided additional insight into the play and given us greater confidence about the play's potential."

Related Categories

Analyst Comments

Stocks Mentioned

Related Entities

• Collins Stewart
• Haynesville Shale

Add Your Comment

Name

Subject

Body

Verification can't see the text?
click here to refresh the image.
what's this?