October 19, 2009 (FinancialWire) — GMX Resources Inc. (NASDAQ: GMXR) (please visit www.gmxresources.com to view the latest corporate presentation) and Kinder Morgan Energy Partners, L.P. (Kinder Morgan) announced that the two companies have signed a definitive purchase agreement in which GMXR will sell a 40% interest in its gas gathering and compression business to Kinder Morgan for $36 million. The closing of the transaction is subject to customary closing conditions, including the release of liens on the midstream assets by the first and second lien holders; we expect to close the transaction in early November.

The gas gathering and compression business provides gathering services to GMXR in its Cotton Valley Sands and Haynesville/Bossier Shale horizontal developments in East Texas, and will provide funding for future infrastructure needs to support GMXR’s anticipated production growth. GMXR’s wholly owned subsidiary, Endeavor Pipeline Inc., will continue to act as operator of the system. The salt water disposal assets and other poly pipelines will not be part of the transaction and will continue to be wholly owned by Endeavor Pipeline Inc.

GMXR also announces the activation of its 2nd FlexRig 3 from Helmerich & Payne, Inc. This rig is in transit and will spud GMXR’s eleventh Haynesville/Bossier Shale horizontal well.

Currently, gas is gathered from approximately 130 wells via its 120 miles of steel pipelines and 22,500 horsepower of owned compression.

GMXR is a ‘Pure Play’, E & P company with one of the most leveraged Haynesville/Bossier Horizontal Shale Operations in East Texas. The company has 465 Bcfe of proved reserves (YE2008), 94% of which are natural gas. The company’s proved reserves are 81% operated and consist of 762 gross / 520 net H/B Hz 80 acre un-drilled locations; 9 gross / 9 net H/B producers, and 324 gross / 186.9 net Cotton Valley Sand (CVS) producers; 2,657 gross / 1,974 net CVS 20 acre un-drilled locations; and 45 gross / 37.5 net Travis Peak / Hosston Sands & Pettit producers. These multiple resource layers provide the potential for repeatable, organic growth.

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