GMX Resources Inc. Announces Haynesville/Bossier Shale Drilling to Begin 3Q08

OKLAHOMA CITY, July 7, 2008 (PRIME NEWSWIRE) (visit www.gmxresources.com to view the most recent Company presentation and for more information on the Company)

GMX Resources Inc. (Nasdaq:GMXR) today announced the commencement of a Haynesville/Bossier drilling program, beginning in Q3 2008. The Company expects to spud four rigs drilling horizontal wells in the Haynesville/Bossier Shale in its 100% acreage in 3Q08. GMXR will change its drilling program to development of the gas shale. Additionally the Company expects to deploy two Flex "purpose built" rigs in early 2009.

"The early successful results of nearby and offsetting Haynesville/Bossier wells warrant our company's conversion to focus the majority of our efforts drilling horizontal wells. This plan will fully develop our underlying gas shale over the next five years at 80 acre density. Production rates from the shale and rates of return appear to be far superior, which should increase GMXR's production, cashflow and return on equity over the period. We will continue to add shale acreage around our core area and will also add additional rigs to develop the shale during this period of high natural gas prices," stated Ken Kenworthy, Jr., the Company's Chief Executive Officer.

Increase in Capital Expenditure Budget
GMXR also announced an increase in its 2008 capital expenditure budget from a previously announced $195 million to $271 million. This increase will allow the Company to drill up to 4 to 6 net horizontal Haynesville/Bossier shale wells in its 27,500 net Haynesville acres. The new capital expenditure budget also includes acreage acquisition cost, infrastructure build-out and equipment upgrades. The Company expects to fund its entire capital expenditure budget with cash flow and its forecasted bank borrowing base. Additionally, the Company has increased its 2008 guidance for discretionary cash flow to $100 million, up from $80 million, revenue to $140 million, up from $125 million and EBITDA to $115 million, up from $95 million. Production guidance will also be raised to 7.8 BCFE for 2H08 and 13.8 BCFE for the full year. 3Q08 production will be flattened somewhat to 3.3 BCFE due to longer drilling times for the horizontal wells, but 4Q08 should increase to 4.5 BCFE and raising daily production rate expectations to 60 Mmcfe/d by year end, up from previous guidance of 42 Mmcfe/d.

Successful Completion of Haynesville Acreage Addition
GMXR successfully closed its previously announced acreage acquisition. Effective July 1, 2008, the Company has added an additional 7300 net acres in Harrison, Marion, and Cass counties in East Texas plus acreage in Caddo Parish, Louisiana. The Company now operates a total of 28,000 net acres with 27,500 Haynesville/Bossier acres with 344 locations on 80 acre spacing. Continue story here.