GMX Resources reports a reduced capital expenditure plan for 2009 and corresponding adjustments to its production guidance for 2009. Additionally, the Company announced the acquisition of additional Haynesville/Bossier prospective acreage in East Texas, and that the Company and its lenders have agreed to modify certain covenants in the Company's credit agreements. The Company has also declared a regular quarterly cash dividend on its 9.25% Series B Cumulative Preferred Stock.

GMXR has reduced its 2009 CAPEX budget by $70 million to $150 million. Under this modified CAPEX budget, the Company expects to drill fourteen and complete sixteen net Haynesville Bossier horizontal (H/B Hz) wells (100% GMXR operated) including the two completions that have already occurred in the first quarter.

There are four rigs currently drilling with completions expected in April. Once these four rigs finish drilling, the Company will release the two rigs on well-to-well contracts and lay down the other two rigs which are owned by a subsidiary of the Company.

The Company will transition to two new H&P FlexRigs(tm) for drilling its H/B Hz wells in the second quarter of 2009. The Company will be focused on the Haynesville/Bossier horizontal drilling program (98% of 2009's CAPEX) that has a rate of return of 25% at current natural gas prices.

New guidance for 2009 production is 14.6 billion cubic feet equivalent (Bcfe) of gas, an estimated 13% growth over 2008, and 2.8 Bcfe in 1Q09, with only two H/B Hz completions. Four H/B Hz completions are projected for 2Q09, five in 3Q09 and five in 4Q09. The Company expects the estimated sixteen H/B Hz completions in 2009 should add 80 Bcfe to its Proved Developed Producing (PDP) reserves.

Based on the revised 2009 capital expenditure budget, cash flow and EBITDA for 2009 are projected to be approximately $50 million and $62 million, respectively. Based on the Company's 2009 expected production of 14.6 Bcfe, the current natural gas strip price and our current hedges, we expect our average Mcfe price to be $7.20 for 2009.

Tags: GMX Resources Inc.