updated 1/28/2011 6:46:40 AM ET 2011-01-28T11:46:40

OKLAHOMA CITY, Jan. 28, 2011 (GLOBE NEWSWIRE) -- GMX RESOURCES INC., (NYSE:GMXR), today announced that it has launched a registered underwritten public offering of $100,000,000 of its common stock. In connection with the offering, the Company intends to grant the underwriters a 30-day option to purchase up to an additional $15,000,000 of common stock to cover any over-allotments. Morgan Stanley & Co. Incorporated and Credit Suisse Securities (USA) LLC are the joint book-running managers of the offering. Other underwriters include Capital One Southcoast, Inc., Pritchard Capital Partners, LLC, Johnson Rice & Company, L.L.C., and Howard Weil Incorporated.

The Company intends to use the net proceeds of the offering (i) to fund an offer to purchase up to $50.0 million of its outstanding 5.00% convertible senior notes due 2013, (ii) to repay the current outstanding balance under its secured revolving credit facility, (iii) to fund the purchase price of pending acquisitions of undeveloped oil and gas leases, (v) to fund its exploration and development program and (v) for other general corporate purposes.

The offering is being made by means of the prospectus and the related preliminary prospectus supplement filed with the U.S. Securities and Exchange Commission (the "SEC") as part of the Company's registration statement. When available, copies of the preliminary prospectus supplement and related prospectus may be obtained by contacting Morgan Stanley & Co. Incorporated, Attention: Prospectus Department, 180 Varick Street, New York, New York 10014, email: prospectus@morganstanley.com, or by calling 1-866-718-1649 or Credit Suisse Securities (USA) LLC, Attention: Prospectus Department, One Madison Avenue, New York, New York 10010, or by calling 1-800-221-1037. The Company's registration statement, preliminary prospectus supplement and prospectus are also available on the SEC website at www.sec.gov .

This press release does not constitute an offer to sell or the solicitation of an offer to buy shares of common stock or any other securities of the Company, nor shall there be any sale of the shares of common stock in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction.

Statements in this news release, including but not limited to those relating to the proposed offering of shares of common stock and other statements that are not historical facts are forward-looking statements that are based on current expectations. Although the Company believes that its expectations are based on reasonable assumptions, it can give no assurance that these expectations will prove correct.

The GMX RESOURCES INC. logo is available at http://www.globenewswire.com/newsroom/prs/?pkgid=5158

CONTACT: Alan Van Horn
         Manager, Investor Relations

© Copyright 2012, GlobeNewswire, Inc. All Rights Reserved


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