GMX Resources Inc. announced a $100 million reduction in capital expenditures for oil and gas development on its properties in Texas and Louisiana over the next two years.
GMX Resources Inc. will spend $175 million for capital expenditures each year in 2011 and 2012, down from the previously announced amounts of $200 million each year. The company kept its capital expenditure plan unchanged for 2010 at $175 million.
GMX Resources Inc. has also extended the sub lease of one of the land drilling rigs that the company has under contract. The sub lease now runs until the company’s underlying lease expires in March 2013, and reduces the company’s obligation by $22 million over the next thirty months.
Despite the reduction in capital expenditures in 2011 and 2012, GMX Resources Inc. kept the company’s guidance unchanged for the next three years. GMX Resources Inc. expects to produce 19 billion cubic feet of natural gas equivalents (Bcfe) in 2010, in a range between 28 and 30 Bcfe in 2011, and 32 and 34 Bcfe in 2012.
GMX Resources Inc. is primarily focused on developing the Haynesville and Bossier Shale formations on its acreage. The company has approximately 269 locations in Texas and Louisiana that are prospective for these formations.
For more information on the company, go to www.gmxresources.com
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