The successful transition to oil is a vital building block of GMX Resources’ shareholder value. Dealing with the facts today, the solution to our challenges is to continue to focus on the steps necessary to achieve the goal. Our oil production has grown 107%. We’re on budget with our 2012 CapEx forecast. We’re on budget with our 2012 G&A reduction goal and expect to reduce G&A by another 20% in the year 2013, and we’re on budget for our 2012 LOE forecast. So we’re moving the company in the direction that we set course for 18 months ago.
It’s not even been a year since our first Bakken well came online and we have produced more oil in the first six months of 2012 than we did in the entire year of 2011. More specifically, looking forward to 2013, as the company’s liquidity position improves through drilling results, cost reductions and asset optimizations, we’ll be able to accelerate our business plan.
I’ll now turn to the presentation that, as Alan has said, is posted on the website and begin on page three, which describes the major advancement in near-term liquidity. One of the near-term challenges the company faces is the maturity of the company’s convertible notes due in February 2013. The remaining balance of $52 million is the focus of an exchange offer we launched this morning just prior to this call. Assuming we are successful in this offer, we would address the current liquidity issues for the 2013 notes along with a limited portion of our 2015 (inaudible) through the issuance of up to $60 million of new notes maturing in 2018.
If the exchange offer is fully subscribed by holders of our 2013 convertible notes, we would also issue approximately 15 million shares of common stock to those noteholders, representing slightly less than 20% of our outstanding shares of common stock. I know all of you will have lots of questions regarding this and I’m going to have to refer you to the tender offer documents that we filed with the SEC for any questions regarding the terms of this offer.Read the rest of this transcript for free on seekingalpha.com