GMX Resources Inc. updated its production guidance for the third quarter of 2010 and for the 2010 calendar year.
GMX Resources Inc. estimates that production in the third quarter of 2010, which ends September 30, 2010, would fall within a range of 4.7 to 5.0 billion cubic feet equivalent. The company estimates that production for 2010 would be between 17.5 to 19 billion cubic feet equivalent.
GMX Resources Inc. also announced that the company’s bank lenders had reaffirmed the $130 million borrowing base of the company. Capital One Bank represented the lenders during the review process.
GMX Resources Inc. also has renegotiated the terms of its $250 million senior secured revolving credit facility. The company has extended the maturity date of the credit facility to August 1, 2012, and has the contractual right to extend the maturity date to July 8, 2013, at the discretion of management.
GMX Resources Inc. also renegotiated the total net debt to EBITDA financial covenant that governed the credit facility. The company’s previous covenant required the total net debt to be at a ratio of 4.0 or less. The new covenant permits the company to have a ratio as high as 4.5 for the balance of 2010.
For more information on the company, go to www.gmxresources.com