GMX Resources Inc., Oklahoma City, (NYSE: GMXR) reports that its total production for third-quarter 2010 is expected to be 4.6 billion cubic feet equivalent (Bcfe), a 7% increase from the previous quarter. Additionally, the company has revised its guidance for the fourth quarter and for year-end 2010 to 4.9 Bcfe and 17.1 Bcfe, respectively.

The company had anticipated that it would complete six wells in third-quarter 2010, but due to fracture stimulation delays, the total number declined to three wells. The third-quarter 2010 production from its Haynesville/Bossier assets (H/B) was 32 million cubic feet equivalent per day (Mmcfe/d). H/B production increased 10% from second-quarter 2010 despite a 50% reduction in the number of completions as compared to the previous quarter. The company had originally expected to complete 20 H/B horizontal wells in 2010 and, as a result of the delays in fracture stimulation services, it will exit the year with 16 completions. Sequential growth in production over 2009 is expected to be 28% for the year.

Michael J. Rohleder, president, GMX Resources, says, "Q3 remained a challenging environment for the natural gas industry. While our production results are slightly below our previous guidance, it is gratifying to see that individual H/B horizontal well performance has continued to increase. Our decision to sublease one more rig is based on the assumption that frac services will remain tight through the fourth quarter and first half of 2011. Our goal is harmonize our drilling pace with frac availability and keep our inventory of wells waiting on completion below two; we currently have six. We anticipate frac services catching up through the first half of 2011 which will allow us to resume our two rig program in June."

Rohleder adds that the company's capex budget for 2011 has been reduced to $152 million from $175 million.

GMX has oil and gas operations in Texas, Louisiana and New Mexico.