GMX RESOURCES INC. Update on Consent Solicitation With Respect to Its Senior Secured Notes Due 2017 (CUSIP Nos. 38011M AN8, 38011M AP3, U3822V AC2 and 38011M AQ1)
OKLAHOMA CITY, Nov. 28, 2012 (GLOBE NEWSWIRE) -- GMX RESOURCES INC., (NYSE:GMXR); As previously announced, the Company has commenced a consent solicitation on November 16, 2012 with respect to amending the indenture (the "Indenture") governing its Senior Secured Notes due 2017 (CUSIP Nos. 38011M AN8, 38011M AP3, U3822V AC2 and 38011M AQ1) (the "Existing Notes"). The Company is soliciting consents from holders of the Existing Notes to obtain the approval of certain amendments and of the execution and delivery of a supplemental indenture to effect the amendments.
The consent solicitation includes a proposal to amend the Indenture to authorize and permit the issuance of a new series of senior secured notes due 2017 under the Indenture (the "New Notes") and require the Company to use the cash proceeds therefrom to repay, redeem, repurchase or otherwise acquire or retire for value the Company's 5.00% Senior Convertible Notes due 2013 (the "2013 Notes") outstanding on the date of issuance of the New Notes at or prior to their stated maturity date.
This press release does not set forth all of the terms and conditions of the consent solicitation. Holders of Existing Notes should carefully read the Company's Consent Solicitation Statement, dated November 16, 2012, as supplemented and amended by Supplement No. 1 thereto, dated November 28, 2012 (as so amended and supplemented (the "Consent Solicitation Statement"), and the accompanying materials for a complete description of all terms and conditions before making any decision with respect to the consent solicitation. The Company does not make any recommendation as to whether or not any holder should consent to the Proposed Amendments. Additional information concerning the terms and conditions of the consent solicitation, and the procedure for delivering consents, as well as copies of the Consent Solicitation Statement and related documents, may be obtained from the tabulation agent, U.S. Bank National Association at (713) 235-9206. Holders of Existing Notes who wish to provide a consent and whose Existing Notes are held, as of the Record Date (as defined below), in the name of a broker, dealer, commercial bank, trust company or other nominee institution must contact such nominee promptly and instruct such nominee, as Holder of such Existing Notes, to promptly execute and deliver a Letter of Consent on behalf of the Beneficial Owner prior to the Consent Date (as defined below).
The Company is offering to pay to each holder of Existing Notes as of the Record Date (as defined below) that validly delivers and does not validly revoke its consent on or prior to the Consent Date (as defined below) a cash consent payment of $5.00 per $1,000 principal amount of Existing Notes for which consents have been so delivered, subject to the conditions and terms set forth in the Consent Solicitation Statement. The record date for determining holders of Existing Notes entitled to consent and receive the consent payment is 5:00 p.m. New York City time on November 28, 2012 (the "Record Date"). The deadline for eligible holders' validly delivering consents has currently been set as 5:00 p.m. New York City time on Thursday, December 6, 2012 (the "Consent Date"). The payment of the consent fee will be made as soon as practicable following the Consent Date.
GMXR is a resource play rich exploration and production Company. The company is currently developing its Bakken and Three Forks oil shale resources 95 MMBOE potential; located in the Williston Basin, North Dakota. The company is also planning test wells in the DJ Basin, Wyoming targeting additional potential oil resources 40 MMBOE potential, in the Niobrara Petroleum System. GMXR's large natural gas resources 1.5 TCFE potential; 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 proposed financing, the number and location of planned wells, 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 obtaining requisite consents for the proposed financing, the closing of the proposed financing, commodity price risks, drilling and production risks, risks relating to GMXR's ability to obtain other financing for its planned activities, 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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