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.

GMX Resources to sell Endeavor Pipeline assets to Kinder Morgan

OKLAHOMA CITY - GMX Resources on Aug. 4 announced a letter of intent to sell an interest in its Endeavor Pipeline assets to Houston-based Kinder Morgan Tejas Pipeline for $40 million.
Selling the midstream natural gas transmission assets will provide capital to add a second H&P FlexRig3 to the Oklahoma City-based company’s Haynesville/Bossier horizontal development program in east Texas and northwest Louisiana.
The sale is expected to be completed within 45 days.
“This transaction will provide enough near-term liquidity for us to be able to activate another FlexRig3 in early October,” said Ken L. Kenworthy, GMX CEO.
GMX has 62,160 acres that are prospective for Haynesville/Bossier development providing 777 horizontal drilling locations.
GMX credits use of the first FlexRig 3 from Tulsa-based Helmerich & Payne for a reduction in drilling costs. Completed well costs for drilling four horizontal wells during the second quarter dropped 40 percent.