OKLAHOMA CITY, July 6, 2010 (GLOBE NEWSWIRE) -- GMX Resources Inc. (NYSE:GMXR) (visit www.gmxresources.com to view the most recent Company presentation and for more information on the Company) announced today that the Company met production guidance by achieving record production of 4.2 billion cubic feet equivalent ("BCFE") for the second quarter of 2010. The 4.2 BCFE of 2Q 2010 production represents a 31% increase from 1Q 2010 and a 27% increase over 2Q 2009.
Ken Kenworthy, Jr., Chairman and CEO, commented, "The second quarter of 2010 production reflects the growth expectations attributable to our three rig Haynesville/Bossier Horizontal (H/B Hz) drilling program and operational actions and modifications made within the quarter. We achieved our production guidance, which consisted of 74% H/B production, for the second quarter as our wells continue to exhibit improved performance and reduced completed well costs of $8.2MM; which are right on target to meet budget. We are also in the process of fracing three new wells in a row, which will contribute to our Q3 production. All of this gives us the confidence that we will meet our 2010 goals of production and revenue growth, average realized natural gas price above $6.00 per Mcf, low H/B Hz development costs and ample liquidity."
The Company plans to provide a more detailed description of our operations and well performance during the second quarter earnings and operational update call scheduled for August 5, 2010 at 10:00 AM CDT (11:00 AM EDT). The participant dial-in number is Toll free: 877-303-9132 or 408-337-0136. A replay of this call will be available after 2:00 PM EDT on August 5, 2010 and can be accessed using the following number and pass code: Toll free: 800-642-1687 or 706-645-9291. Replay Pass code: 84951331. The replay will be available until August 12, 2010. A presentation pertaining to this call will be available on the Company's website no later than 6:00 AM CDT, August 5, 2010.
The Company will release an operations update as well as second quarter earnings after the close of trading on the New York Stock Exchange on Wednesday, August 4, 2010.
GMXR is a 'Pure Play', E & P Company with one of the most concentrated H/B Hz Shale Operations in East Texas. The Company has 355 BCFE in proved reserves (YE2009), 94% of which are natural gas. The Company's proved reserves are 81% operated and consist of 19.0 gross/18.6 net H/B Hz producers, 324 gross / 186.9 net Cotton Valley Sand ("CVS") producers and 47 net Travis Peak / Hosston Sands & Pettit producers. These multiple resource layers provide high probability and the potential for repeatable, organic growth and contain 273 net H/B Hz un-drilled locations and 1,382 net CVS un-drilled locations.
The GMX Resources Inc. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5158
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.