OKLAHOMA CITY, Sept. 22, 2008 (GLOBE NEWSWIRE) -- GMX Resources Inc. (Nasdaq:GMXR) (visit www.gmxresources.com to view the most recent Company presentation and for more information on the Company) today updated its 2008 production forecast and status of drilling operations in the wake of Hurricanes Ike and Gustav.
Production for 2008 is expected to reach 13.0 Bcfe, an increase of 49% over 2007 production of 8.7 Bcfe. Previous guidance estimated the 2008 production to be in the range of 13.0 to 13.8 Bcfe with an expectation of 4 Haynesville completions late in 4Q08. The Company previously announced four Haynesville horizontal spuds in Q308 with completion in December, 2008. The Company now expects only one well will be drilled and completed by year end and three will spud in Q408. Production expectations from three 4Q08 wells will now be included in the 2009 production forecasts. The Company suffered no direct negative effects of Hurricanes Ike and Gustav but took precautionary actions with its rigs during both storms and we are also experiencing delays in shipments of critical materials causing the delayed spud of two proposed Haynesville horizontal wells. The fourth well is waiting on delivery of a rig which was scheduled for August 2008 and now expected to be late 4Q08. The Company is continuing its Cotton Valley Sand vertical drilling plan and expects no further disruption to its overall drilling plan.
GMXR also announced that the Company's CEO, Ken Kenworthy, Jr., will present at the Herold Pacesetter Energy Conference in Connecticut at the Hyatt Regency Greenwich on Thursday, September 25, 2008, at 8:15 AM EDT. A copy of slides that will be used in the presentation will be available on the Company's website beginning Tuesday, September 23, 2008 at http://www.gmxresources.com.
GMXR is a 'Pure Play', E & P company that has significant Haynesville / Bossier Shale acreage in East Texas and North Louisiana. The Company has 435 BCFE in proved reserves and 3.2 TCFE in total 3P reserves that are 94% natural gas and consist of 480 net Haynesville /Bossier 80 acre horizontal locations and 313 gross / 193.9 net Cotton Valley ("CV") producers; 2,657 gross / 1,974 net CV un-drilled locations with a 100% drilling success rate. Eight drilling rigs are currently developing this contiguous, multi-layer gas resource play on the Sabine Uplift; Carthage, North Field, in Panola & Harrison County of East Texas, and Caddo Parish of North Louisiana. The Company has invested $70 million in infrastructure which has contributed to 'Best in Class' finding and development costs. There are also 43 gross / 35.4 net Travis Peak/Hosston Sands & Pettit producers on the property. These multiple resource layers provide high probability and repeatable, organic growth. The Company, headquartered in Oklahoma City, Oklahoma, has interests in 376 gross / 243.2 net producing wells and operates 77% of its reserves. The Company's strategy is to grow shareholder value through acceleration of development and acreage additions achieving operational growth around its core area, converting its natural gas reserves to proved, while maintaining balanced prudent financial management.
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This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the Company expects, believes or anticipates will or may occur in the future are forward-looking statements. They include statements regarding the Company's financing plans and objectives, drilling plans and objectives, related exploration and development costs, number and location of planned wells, reserve estimates and values, statements regarding the quality of the Company's properties and potential reserve and production levels. These statements are based on certain assumptions and analysis made by the Company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes appropriate in the circumstances, including the assumption that there will be no material change in the operating environment for the company's properties. Such statements are subject to a number of risks, including but not limited to commodity price risks, drilling and production risks, risks relating to the Company's ability to obtain financing for its planned activities, risks related to weather and unforeseen events, governmental regulatory risks and other risks, many of which are beyond the control of the Company. Reference is made to the company's reports filed with the Securities and Exchange Commission for a more detailed disclosure of the risks. For all these reasons, actual results or developments may differ materially from those projected in the forward-looking statements.