Financial Results for the Three Months Ended September 30, 2009

GMXR reported a net loss of $2.8 million for the three months ended September 30, 2009 as compared to 2008's third quarter net income of $9.6 million. Diluted loss per share for the three months ended September 30, 2009 was $0.19 per share compared to net income of $0.50 per share for the three months ended September 30, 2008. Adjusted net income available to common shareholders, a non-GAAP measure adjusting for unrealized derivative losses and income tax valuation allowances, was $1.6 million, or $0.08 per share, for the third quarter of 2009 and is calculated as follows:

                                                    Three Months Ended
                                                    September 30, 2009
                                                   -------------------
 (in thousands, except per share amounts)            Amount  per share
                                                   --------- ---------
 Net loss applicable to common stock               $ (3,938) $  (0.19)
 Adjustments:
   Income tax valuation allowance                     4,577      0.22
   Unrealized losses on derivatives,
    net of taxes of $494                                959      0.05
                                                   --------- ---------

 Adjusted net income applicable to common stock    $  1,598  $   0.08
                                                   ========= =========

The third quarter 2009 operating results continued to be impacted by lower market prices for crude oil and natural gas as compared to the second quarter of 2009. Oil and gas sales in the third quarter of 2009 of $23.1 million increased 1% from sales in the second quarter of 2009 of $22.8 million as a result of a 5.5% increase in crude oil and natural gas production. GMXR's production from its East Texas operations in the third quarter of 2009 increased to 3.49 billion cubic feet equivalent of natural gas ("Bcfe") as compared to production of 3.31 Bcfe in the second quarter of 2009. Natural gas prices realized in the third quarter of 2009 averaged $6.26 per thousand cubic feet ("Mcf"), 4% lower than the $6.54 per Mcf realized in the second quarter of 2009. GMXR's average realized oil prices in the third quarter of 2009 increased to $80.82 per barrel, 7% higher than the $75.88 per barrel in the second quarter of 2009.

During 2009, the Company has continued to focus on reducing operating and overhead costs. As a result, both lease operating expenses and general and administrative expenses on a per Mcfe basis decreased in the third quarter of 2009 compared to the second quarter of 2009. Lease operating expenses of $0.78 per Mcfe in the third quarter of 2009 decreased 5% from $0.82 per Mcfe in the second quarter of 2009. General and administrative expenses of $1.38 per Mcfe in the third quarter of 2009 decreased 14% from $1.61 per Mcfe in the second quarter of 2009.

Among non-GAAP measures, discretionary cash flow generated by GMXR in the third quarter of 2009 was $13.7 million, an increase of 14% over 2009's second quarter non-GAAP discretionary cash flow of $12.0 million.

Financial Results for the Nine Months Ended September 30, 2009

GMXR reported a net loss of $135.4 million for the nine months ended September 30, 2009 as compared to net income of $28.2 million in the nine months ended September 30, 2008. Diluted loss per share for the nine months ended September 30, 2009 was $7.60 per share compared to net income of $1.62 per share for the nine months ended September 30, 2008. Adjusted net income available to common shareholders, a non-GAAP measure adjusting for unrealized derivative losses, non-cash impairment charges and writedowns, bad debt expenses and income tax valuation allowances, was $3.7 million, or $0.20 per share, for the first nine months of 2009 and is calculated as follows:

                                                   Nine Months Ended
                                                   September 30, 2009
                                                 ---------------------
 (in thousands, except per share amounts)          Amount   per share
                                                 ---------- ----------
 Net loss applicable to common stock             $(138,851) $   (7.60)
 Adjustments:
   Full cost accounting impairment, net of
    taxes of $61,298                               118,990       6.51
   Inventory writedown, net of taxes of $2,118       4,111       0.22
   Income tax valuation allowance                   17,290       0.95
   Unrealized losses on derivatives, net of
    taxes of $961                                    1,866       0.10
   Bad debt expense, net of taxes of $165              321       0.02

                                                 ---------- ----------

 Adjusted net income applicable to common stock  $   3,727  $    0.20
                                                 ========== ==========

Recent Capital Raising and Hedging Transactions

In October 2009, the Company completed public offerings of 6,950,000 shares of common stock at $15.00 per share and $86.25 million aggregate principal amount of 4.50% convertible senior notes due 2015. The Company used the aggregate net proceeds from these offerings of $181 million to repay the outstanding indebtedness under its revolving bank credit facility, to repay all of its outstanding senior secured notes, and the Company will use the remaining portion of these net proceeds for general corporate purposes.

The 4.50% convertible are general senior, unsecured obligations of the Company and are convertible, under certain circumstances, into cash, shares of the Company's common stock or a combination of cash and shares of the Company's common stock, at the Company's election. The notes bear interest at a fixed rate of 4.50% per year, payable on May 1 and November 1 of each year, beginning May 1, 2010. The notes will mature on May 1, 2015.

In addition to the common stock and convertible notes offerings in October 2009, on November 2, 2009, the Company received $36 million in proceeds from Kinder Morgan Endeavor LLC from the sale of a 40% interest in Endeavor Gathering LLC, a new entity formed to hold all of the Company's midstream assets. The proceeds from this sale will be used for general corporate purposes which includes the use of a second operated H&P FlexRig3 (TM) on the Company's acreage in Harrison and Panola counties in East Texas.

The Company expects that the capital raised during 2009 will be sufficient to fund a four rig drilling program through the point at which its discretionary cash flows will exceed its capital expenditures. The Company will continually adjust capital expenditures based on the current commodity price environment to ensure that the Company has adequate liquidity in cash and/or with availability under its revolving bank credit facility. The Company expects to complete a semi-annual redetermination of the borrowing base under its revolving bank credit facility in November 2009. The Company does not anticipate a material change in the borrowing base from this redetermination.

In October 2009, the Company purchased $6.00 put options on 1.9 Bcf, 11.1 Bcf, and 13.4 Bcf, respectively, of 2010, 2011, and 2012 natural gas production. The cost per MMbtu of these put options was $0.7725 for a total cost of $20.4 million which will be paid in the month the contract is settled. In November 2009, the Company sold $4.00 puts on 0.965 Bcf of 2010 natural gas production and received approximately $162,000. The Company anticipates selling additional puts and calls on these volumes over the three year period to recover the cost of these purchased puts. Currently, the Company has 60%, 39%, and 32% of its expected natural gas production hedged in 2010, 2011, and 2012, respectively, at a weighted average floor price of $6.43, $6.13, and $6.29 for the respective years. We anticipate using various derivative contracts such as puts, put spreads, and collars to mitigate natural gas and crude oil price risk on 60% to 80% of our expected production over a rolling 36 month period to ensure our net operating income and cash flow.

Third Quarter 2009 Operational Results

Operating a one rig drilling program the Company achieved very good corporate metrics in the third quarter. Production for the quarter was up 5% sequentially from the second quarter of 2009, in part due to the Company's focus on H/B Hz drilling.

During the 3rd quarter of 2009, the Company drilled and completed two previously announced H/B Hz wells -- the Holt 1H and the Verhalen B 1H, and spud the Verhalen C 1H which was completed in late October. The Holt 1 H and Verhalen B 1H wells have averaged over 5.7 mmcfe/d for the first thirty days of production and continue to outperform the previous H/B Hz wells drilled by the Company earlier this year. The Verhalen C 1H has been on line for less than two weeks but is producing at a comparable rate. Additionally, these three wells represent the lowest completed well costs ("CWC") to date, with the Verhalen C 1H CWC expected to be less than $7 million. The TJT Simpson 1 H began the completion process in late October and the Company experienced a mechanical integrity issue with the production casing during the second stage of treatment. The indications from the first stage flow back are significant enough to expect results equal to or greater than previously reported wells. We are developing a plan for repair that will allow us to successfully complete the well in the fourth quarter of 2009.The Company also spud the Snider A 1 H in late September. On this well the Company is coring the entire Haynesville / Bossier formation and will submit this core to the Haynesville Shale Consortium sponsored by Core Labs, Inc.

The Company has joined the Object Reservoir Haynesville project which currently has 14 members representing virtually all of the major Haynesville operators. This affiliation will provide the Company with an immense amount of information, data and modeling tools capable of determining behaviors and success characteristics of over 60 H/B Hz wells already drilled in the basin.

CWC have continued to decline due to the Company's focus on reducing drilling time and materials management. The average drilling time for the last three H/B Hz is less than 40 days and the Company expects additional reductions in drilling times. Each day of drilling time reduced represents a $70,000 cost reduction. The Company continues to competitively bid subcontracted services and material which has resulted in substantial costs savings compared to the second quarter of 2009.

The third quarter was an active quarter for many other operators in East Texas and with a record number of H/B Hz well results reported by those operators, the new results continue to corroborate the Company's view of the viability and productivity of its East Texas acreage. H/B Hz reported IP results from other operators have ranged from 6.0 mmcfe/d to over 15 mmcfe/d with 30 day production rates in the range of 5.7 mmcfe/d to 9.1 mmcfe/d; a 60% increase in 30 day production rates from our best wells to date. We believe these results in and around the GMXR core area attest to the quality of the formation in East Texas and are indicative of the benefit of the learning curve derived from considerably more drilling activity. The Company has a number of data sharing agreements with other operators and has actively pursued dialog to compare and contrast information related to drilling and completion techniques. The Company intends to modify some of its drilling and completions techniques and expects to continue to deliver increasingly better results over time. These changes will be implemented in late fourth quarter 2009 and early first quarter 2010.

Ken Kenworthy, Jr., Chairman and CEO said in a statement, "We are continuing to deliver better results at lower costs from our Haynesville / Bossier assets. We've taken the necessary steps to ensure we have the capital in place in advance to put GMXR back into a growth mode. We are active learners willing to apply the best of class techniques in our drilling and completion programs. We will continue to hedge through 2012 to make certain we meet our targeted rate of return from our H/B Hz program. The Company is back in a growth profile with a second rig active as of October 15th and the expectation of the third and fourth rig becoming active in the first quarter of 2010. A number of new shareholders were part of the most significant capital raise in the history of the Company which now positions us to fund our four rig program through 2012 and become cash flow positive."

The Company is currently drilling in its 100% operated core acreage with 2 rigs; rigs 3 & 4 are scheduled to begin in the first quarter of 2010. We have elected to participate in two H/B Hz wells in the non-operated core area in the fourth quarter of 2009 and will likely participate in additional non-operated wells in the core area in 2010.

Production and Production Guidance

GMXR produced 3.49 Bcfe in the third quarter of 2009 as compared to 3.51Bcfe in the third quarter of 2008, a 1% decrease. GMXR produced 10.02 Bcfe in the first nine months of 2009 compared to 9.63 Bcfe in the first nine months of 2008, a 4% increase. Sequentially, production increased 5.5% from 3.31 Bcfe in the second quarter of 2009. The production flattening was attributable to the Company only running one rig for approximately six months of 2009 and the Company's decision to switch from primarily drilling the Cotton Valley Sands to exclusively drilling the Haynesville/Bossier Shale. Production guidance for the fourth quarter of 2009 ranges from 3.50 Bcfe to 3.75 Bcfe. Production from H/B Hz wells was approximately 53% and 30% of the Company's production for the three and nine months ended September 30, 2009, respectively.

Production guidance for 2010 and 2011 is estimated to be 17 Bcfe and 25 Bcfe, respectively, under a three rig drilling program. Under a four rig drilling program, production is estimated to be 19 Bcfe and 30 Bcfe for 2010 and 2011, respectively. The production guidance for 2010 and 2011 does not include any anticipated production from new non-operated wells other than two H/B Hz wells where we have elected to participate.

Updated Budget Guidance

GMXR's current 2009 two rig CAPEX budget is estimated at $175 million which includes the drilling of 10 HB Hz wells and 12 H/B Hz completions in 2009. Almost 100% of the remaining 2009 drilling program will be focused on Haynesville/Bossier horizontal drilling which has the Company's highest expected rate of return. For the nine months ended September 30, 2009, the Company had nine H/B Hz completions and the Company expects to have three completions in the fourth quarter of 2009. In the nine months ended September 30, 2009, our capital expenditures were $138.3 million, of which $82.3 million was for drilling and completing H/B horizontal wells, $9.2 million was for rig delay fees, $9.3 million was for Cotton Valley and Travis Peak drilling and other drilling related expenditures including tubular inventory and $37.5 million was related to leasehold and infrastructure costs. In the last three months of 2009, we expect to have capital expenditures of approximately $36.7 million primarily related to drilling and completing H/B Hz wells with two operated rigs. We do not expect to have significant infrastructure or inventory expenditures in the last three months of 2009.

The Company is using the H&P FlexRig3(TM) for its H/B Hz wells which has already provided efficiencies in reducing drilling days and lowering costs. The cost of recent H/B Hz wells is averaging $7.0 million based on a 35 to 40 day drilling schedule. The authorization for expenditure ("AFE") for the Company's latest well spud in October 2009 was $6.5 million. The Company is working to reduce drilling times by an additional five to ten days which could reduce well costs by $350,000 to $700,000.

Anticipated 2010 capital expenditure guidance ranges from $190 million for a three H/B Hz rig drilling program to $220 million if the fourth contracted rig begins H/B Hz drilling in late March 2010 as scheduled. For 2011, capital expenditure guidance ranges from $200 million to $245 million for a three and four rig program, respectively. Due to the recent capital raising activities, the Company has the potential to increase the 2010 and/or 2011 capital expenditure guidance by approximately $25 million if the Company elects to participate in additional proposed non-operated wells.

Based on the capital expenditures planned for 2010 and 2011 and the proceeds from the recent offerings, we believe the Company has ample liquidity to execute either a three or four rig drilling program. With the reserves added from either the three or four rig drilling program, the Company expects to generate excess capacity under its revolving bank credit facility. In addition, the Company's active hedging program should help generate positive operating cash flow.

Management Comment

"Over the last six months, we have repositioned the Company to return to a growth company. The proceeds from the recent offerings along with the midstream monetization have provided us with the capital and liquidity to run a four rig drilling program in 2010 and 2011 until the point in time in which our discretionary cash flow exceeds our capital expenditures which is projected to occur in the second half of 2012," stated Jim Merrill, Chief Financial Officer. Mr. Merrill continued, "East Texas Haynesville/Bossier results from all operators have significantly improved during the third quarter of 2009. Along with our continued focus on reducing drilling and completion costs, we expect to achieve improved financial and operating results as we accelerate our Haynesville/Bossier horizontal drilling program."

GMXR Third Quarter 2009 Earnings Conference Call

GMXR has scheduled a conference call for Friday, November 6, 2009 at 10:00 a.m. CST (11:00 a.m. EST) to discuss third quarter 2009 financial and operating results. To access the call, dial 719.325.2312 or 888.312.9865 before the call begins. A replay of the call will be available after 2:00 PM EST, November 6, 2009. To access the replay, please dial 719.457.0820 or 888.203.1112 and reference passcode 5043699.