GMX Resources Inc. (NYSE:GMXR) has traded as high as $1.25 during today�s trading session and last traded at the high of the day for a gain of 32.98% from yesterday�s close. GXMR shares have traded as high as $6.48 over the past 52 weeks, which is 80.7% off that high at last traded stock price. Get my next ALERT 100% FREE
GMXR today announces an operational update on our Bakken development program, provides production guidance for the first quarter and year-end 2012 and provides an update on the Company’s capital expenditures for 2012.
Over the last 14 months many important accomplishments have been made regarding the Company’s strategic direction to transform from a concentrated natural gas producer into a more diversified energy Company focused on an accelerated program to increase oil as a significant component of our near term exploration and production activities while improving liquidity in challenging market conditions.
- Agreements to purchase 35,524 acres in the Bakken (150/1,280 acre Units) and 40,191 acres in the Niobrara providing the Company the opportunity to switch from primarily a natural gas producer to predominately an oil producer
- Issued equity for approximately $105 million of cash and $200 million in High Yield Bonds to make acquisitions and fund drilling
- Suspended natural gas drilling in July 2011 to re-direct capital to significantly higher rate of return acreage
- Reduced H&P Flex Rig contract obligations by $47 million
- Successfully completed a natural gas VPP for $49.7 million
- Captured $18.5 million of natural gas hedge value
- Terminated credit agreement and related financial maintenance covenants; no longer dependent on commercial lending
- Successfully generated $100 million in new liquidity in connection with Bond Exchange
- Implemented plan to reduce cash G&A by an estimated 21% for 2012
- Established operational footprint in one of the largest and most competitive oil plays in USA
- Prefunded planned 2012 drilling program with recent liquidity events
Given the continued decline in natural gas pricing resulting from an oversupply created by the success of horizontal drilling in the United States, our decision to transition to an oil producer and to suspend drilling of our core East Texas natural gas assets continues to be a prudent business decision.�The liquidity-enhancing steps undertaken by the Company during the fourth quarter of 2011 consisting of the issuance of secured senior notes due 2017, the execution of the VPP and the monetization of natural gas hedges were both creative and challenging to accomplish but resulted in approximately $168 million of additional capital available for drilling.� We plan to proactively maintain liquidity and are working on new oil hedging strategies. Read more
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