SOURCE: Paragon Financial Limited

Paragon Financial Limited

February 29, 2012 08:20 ET

U.S. Oil Production Shows No Signs of Slowing - SandRidge Energy and GMX Resources Poised to Benefit

The Paragon Report Provides Equity Research on SandRidge Energy & GMX Resources

NEW YORK, NY--(Marketwire - Feb 29, 2012) - Oil stocks have been on fire of late. The SPDR S&P Oil & Gas Exploration & Production ETF (XOP) has outperformed the Dow Jones Industrial Average by roughly 43 percent over the last three months as oil prices continue to surge. Global oil prices hit nine-month highs last week on worries about the impact of heightened Iran tensions on tight global oil supplies. Despite an upswing in oil production, the price of oil shows no signs of slowing. As President Obama explains, "the amount of oil that we drill at home doesn't set the price of gas by itself. The oil market is global. Oil is bought and sold in a world market. And just like last year, the single biggest thing that's causing the price of oil to spike right now is instability in the Middle East." The Paragon Report examines investing opportunities in the Oil & Gas Sector and provides equity research on SandRidge Energy Inc. (NYSE: SD) and GMX Resources, Inc. (NASDAQ: GMXR). Access to the full company reports can be found at:

In the United States, Baker Hughes reported this week that 1,265 rigs were exploring for oil and 710 for natural gas. Six were listed as miscellaneous. A year ago this week Baker Hughes reported 1,699 active rigs. The current nationwide rig count easily exceeds that of the 6-year low of 876 (in the week ended June 12, 2009).

Natural gas rigs continue to decline at a rapid rate, however. Record-high supplies and weak demand during one of the mildest winters on record helped drive gas prices to 10-year lows in January, prompting several producers to cut back on drilling, Reuters reports.

The Paragon Report provide investors with an excellent first step in their due diligence by providing daily trading ideas, and consolidating the public information available on them. For more investment research on the Oil & Gas Sector register with us free at and get exclusive access to our numerous stock reports and industry newsletters.

SandRidge Energy, Inc., together with its subsidiaries, operates as an independent natural gas and oil company in the United States. The company engages in the exploration, development, and production of oil and gas properties. Last week the company reported that it expects full-year production to come in at 32.3 million barrels of oil equivalent (mmboe), higher than the 23.4 mmboe it produced in 2011. Oil and natural gas revenue increased 34 percent to $329.3 million in the fourth quarter, the company reported. Quarterly output inched up 6 percent to 6.1 mmboe, while oil production grew 26 percent to 3.3 million barrels from year ago.

GMX Resources Inc. operates as an independent oil and natural gas exploration and production company primarily in the United States. The company recently reported that it shifted its activity in 2012 to actively drill its McKenzie County and Billings County, North Dakota leaseholds.

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