Wednesday, October 21, 2009

GMX selling stake in gas gathering operations to Kinder Morgan

HOUSTON - GMX Resources Inc has agreed to sell a 40 percent stake in its gas gathering and compression business to Kinder Morgan Energy Partners LP for $36 million. The money will be used by GMXR to expand its drilling program in Texas and Louisiana.
GMX’s salt water disposal assets and other poly pipelines will not be part of the deal and will continue to be wholly owned by GMX's unit, Endeavor Pipeline Inc, the company said
Endeavor will also continue to act as the operator of the gas gathering system. The deal is expected to close in early November, GMXR said.
"The Kinder Morgan transaction provides the financial capacity for GMXR to add a second rig to the Haynesville/Bossier horizontal drilling program," GMX's Chief Executive Ken Kenworthy said.
The Bossier and Haynesville shales contain large quantities of gas and are both located in east Texas and northern Louisiana.

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