As anyone heard of GMX Resources? I am trying to find out more about them before signing a lease. Any info would help.
Cara,
I would suggest investigating them prior to signing. I have posted elsewhere about my thinking about this. First are they the a landman company, the gasco or speculators (flippers). I wouldn't lease to flippers. If they are a 3rd party landman firm (hired to lease people's mineral rights) I would do all you could to determine who their client is. If you have a lot of acreage or you have a location of strategic importance, you may have the power to obtain the name of the client. Generally, a landman firm is acting anonymous - but worse yet, the landman firm could be a SHELL.
So I also strongly suggest you research the lessee. good start asking here, but importantly look to see if they are licensed to do business in ND. Google them and see what you learn about them as well. Google the names of the Landmen and anyone else you have met from the company. Also, when researching the company you must be diligent to use their exact name. Get their name off their card and if it isn't clear look at any documents or ask them. Some of these outfits are shells (just paper companies) and formed to function anonymously and they sometimes will use a name that is very similar to an existing or known gas related firm. So you may think you have heard of them or when you look into them you "think" they are legit; when in fact the name is slightly different, especially the Inc., LLC, Co. etc.
Lastly, don't rush to sign. No and NOW lastly, do not provide anyone with a signed lease until you have "cash in hand". There are posts around about that topic, but do not accept anything accept a company check or cashier check and then continue to hold the lease until the check has cleared and you are positive your deal is real and there are no kicks. You don't have a legit deal until you have the money in hand and these days too many companies are playing shenanigans.
Now I must conclude by saying I know nothing about GMX Resources; they may be fine? However, I do know there are some SHELL games going on in some areas of ND and Chesapeake for sure has pulled this in ND (and elsewhere).
Good luck and be cautious.
Wilson
We are currently participating in a lease with GMX in billings county. they seem to be a good operator but we haven't seen results yet. if you have any questions please email me at [email protected]
GMX is operators on my well. If you email me, I will tell you my dealings with [email protected]