GMX RESOURCES INC. Provides Company Update
Production for the year-end 2012 was approximately 1.9 MMBOE, which included approximately 203,500 Bbls of oil, 8.9 Bcf of natural gas and 237,500 Bbls of NGLs. The 203,500 Bbls of oil in 2012 represents an approximate 119% increase over 2011 production. Estimated Bakken oil production for 2012 was 148,500 Bbls compared to approximately 13,100 Bbls in 2011, an increase of 1,037%.
2012 Capital Expenditures
For the year ended December 31, 2012, the Company's estimated cash outlays for capital expenditures, excluding capitalized G&A expenses and interest were approximately $96.1 million, of which $77.5 million was for drilling in the Williston Basin, $4.9 million was for Bakken leasehold, $2.7 million was for DJ Basin-Niobrara activities, and $11.0 million was primarily for rig sub-lease fees, infrastructure and equipment.
Liquidity UpdateThe Company's available cash at year-end 2012 was $46.0 million and includes $16.8 million reserved for the maturity of the Company's 5% Convertible Senior Notes due 2013. The Company has recently sought indications of interest for certain debt and equity liquidity alternatives, but not yet received sufficient support for all of its liquidity needs or plans. The Company is continuing to explore and evaluate options for its capital needs, as well as continuing to evaluate and finalize its 2013 budget for capital expenditures based on its available liquidity. GMXR is a resource play rich exploration and production Company. The company is currently developing its Bakken and Three Forks oil shale resources located in the Williston Basin, North Dakota. The company is also planning test wells in the DJ Basin, Wyoming targeting additional potential oil resources in the Niobrara Petroleum System. GMXR's large natural gas resources are located in the East Texas Basin, primarily in the Haynesville/Bossier gas shale and the Cotton Valley Sand Formation; where the majority of GMXR's acreage is contiguous, with infrastructure in place and substantially all held by production. GMXR believes these oil and natural gas resource plays provide a substantial inventory of operated, high probability, repeatable, organic growth opportunities in constantly changing economical environments. GMXR's multiple basin strategy provides flexibility to allocate capital to achieve the highest risk adjusted rate of return, with both oil and natural gas resources throughout its portfolio. Please visit www.gmxresources.com for more information on GMXR. 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 GMXR expects, believes or anticipates will or may occur in the future are forward-looking statements. They include statements regarding the Company's 2013 drilling plan and estimated capital expenditures, the number and location of planned wells, and statements regarding the quality of GMXR's properties and resource potential. These statements are based on certain assumptions and analysis made by GMXR 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 GMXR's properties. Such statements are subject to a number of risks, including but not limited to risks relating to the Company's ability to obtain financing for its planned activities, commodity price risks, drilling and production risks, risks related to weather and unforeseen events, governmental regulatory risks and other risks, many of which are beyond the control of GMXR. Reference is made to GMXR'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.
CONTACT: Alan Van Horn Manager, Investor Relations 405.254.5839
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