OKLAHOMA CITY, Sept. 8, 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) today announced a reduction in capital expenditure guidance for 2011 and 2012 down from $200 million in each year to $175 million in each year. Capital expenditure guidance for 2010 remains unchanged at $175 million. GMXR's current plan is to continue to run a two rig program. Based on increases in well performance, previously announced production guidance remains unchanged at 17.5 to 19.0 Bcfe for 2010, 28.0 to 30.0 Bcfe for 2011, and 32.0 to 34.0 Bcfe for 2012.
The Company has agreed to extend the sublease of one of its H&P FlexRig 3™ with a major operator for the remaining term of the original rig contract which expires on March 25, 2013. Under the extension, the Company's remaining obligation under the rig contract is reduced by $22 million to approximately $5 million which will be paid over the remaining term of the rig contract.
The Company's two newest Haynesville/Bossier (H/B) horizontal wells with at least 30 days of production history are the Mercer #11H and the Verhalen F #1H. The Mercer #11H first day of sales was July 27, and has averaged 8,170 Mcf/day for the first 30 days of production. The Verhalen F #1H first day of sales was July 7, and has averaged 5,740 Mcf/day for the first 60 days of production. These well results represent a continuation of upgraded performances seen since refinement of the Company's completion schemes in early 2010. We expect to continue to see improved well results this year.
GMX Resources Inc. is a 'Pure Play', E & P Company with one of the most concentrated Haynesville/Bossier (H/B) Horizontal Shale Operations in East Texas. The Company has 355 Bcfe in proved reserves (YE2009). Of the total production guidance, approximately 4% is oil. Of the remaining 96%, 85% is natural gas and 11% is natural gas that is converted to natural gas liquids (NGLs). The Company's proved reserves are 81% operated and consist of 23 gross /22.46 net H/B 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 269 net H/B Hz undrilled locations and 1,382 net CVS un-drilled locations.
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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.