GMX RESOURCES INC. Announces Horizontal Drilling Plans; Record Production Rate Increases; Shallow Drilling 4th Quarter 2006; Operational Update; Upcoming 2006 IPAA-OGIS West Presentation Webcast

OKLAHOMA CITY, Oct. 2 /PRNewswire-FirstCall/ -- GMX RESOURCES INC., ; (visit http://www.gmxresources.com/ to view the most recent power point presentation and for more information on the Company). GMXR has added a second company owned rig to its Cotton Valley (CV) development and has begun drilling horizontally in the Taylor Sand of the Upper Cotton Valley (UCV) with a third leased rig. "Record net average daily production of 14.3 mmcfe/d for the Company for the third week of September was up 40% compared to the third week of June, partly due to continued focus on completion cycle time in our CV development," stated Ken L. Kenworthy, Jr., Chief Executive Officer of GMXR.

Operational and Joint Development Update: 3Q06 Activity North Carthage Area

Fifteen gross/ 5.8 net wells were drilled during the 3rd Quarter 2006 and 18 gross wells/ 9.1 net wells were completed in UCV. Penn Virginia Oil & Gas, L.P. (PVOG), a subsidiary of Penn Virginia Corporation , our joint venture partner, drilled with a completion rig a 608 foot curve and 1,695 foot lateral in the Lower Bossier sand at approximately 11,200 feet True Vertical Depth (TVD). A three stage acid frac was used for the completion of the horizontal well. GMXR will be using Unit Rig #309 for five wells, currently drilling one of two horizontals planned in the Taylor Sand of the UCV. The first well is planned to drill a 1,800 foot lateral. The seventh rig to be used in the play by GMXR; Diamond Blue Drilling (DBD; wholly owned sub of GMXR) Rig #11 will begin drilling this week. DBD Rig #7 and D&D #11 are drilling two twins (wells which are very close to a deeper well) to 7,000 feet through the Upper Travis Peak and are scheduled to drill 10 total twins before resuming CV development. "The twins that are planned are targeting conventional sand reservoirs in the Travis Peak (aka Hosston in La.) and Pettit, where previously drilled CV wells encountered excellent gas shows with above average porosities (13%-20%), low water saturations and are productive in the area but not fully developed. These wells will take 10 days to drill and require less expensive completion treatments and will be producing into sales within 30 days from spud. We could commingle several sands in each well," stated Ken Kenworthy, Jr., Chief Executive Officer of GMXR.

4Q06 & 2007 Planned Activity North Carthage Area

Six-seven rigs are now drilling in our field development representing 60% increase in net wells from 2.4 net wells using five-six rigs to 3.9 net wells drilling for GMXR. DBD is assembling its third rig in our Marshall Texas yard; it should be ready in the 1H07. PVOG is expecting delivery of its third flex rig from Grey Wolf in November 2006 and a fourth flex rig from H & P in the 2H07. Current drilling plans in 2007 have GMXR drilling with 3-4 rigs in its 100% Area and PVOG with 4-7 rigs drilling 70% of the time within our JV Areas and the balance in their 100% Area or to be decided. Current PVOG plans through the end of 2007 are to be drilling 68% of its JV wells in the JV50% Area and 32% in the JV30% Area. 4Q06 production guidance is 1.5 BCFE, which equates to 4.4 BCFE for 2006 a 100% increase from 2005. "The horizontal completions (1 Bossier and 1-2 Taylor) as well as the Travis Peak twins could improve our production growth further," stated Ken Kenworthy, Jr., Chief Executive Officer. We will use 4-5 stages of fracture treatments on our first horizontal. The second horizontal well is planned to drill a 3,000 foot lateral and 7-8 stages are planned.

Hedge:

Effective August 1, 2006, we entered into a one-year hedging transaction with Union Bank of California for 100,000 MMbtu per month. This transaction is in the form of a fixed-price swap agreement, pursuant to which we receive (if the index price is lower than the fixed price) or pay (if the index price is higher than the fixed price) the difference between $8.005 per MMbtu and the index price, which is the Inside FERC-Houston Ship Channel price.

GMX RESOURCES INC. will be a presenter at the IPAA-OGIS West (Oil and Gas Investment Symposium) in San Francisco on Wednesday, October 4, 2006 at 4:25 PM EDT/ 3:25 PM CDT/ 2:25 PM MDT/ 1:25 PM PDT to further discuss its operational update and plans. The power point for this presentation is accessible on the Company's website. To access the web-cast log on to http://www.gmxresources.com/ at least 20 minutes prior to the scheduled start of the web-cast to download and install any necessary audio software. You can find the Internet web-cast link under the Investor Relations tab where you will be required to register your name and email address. You must have either Microsoft Media Player or Real Player to access the conference call. During the conference call periodically the company's most recent presentation, on its website will be utilized. An on-demand replay of the web- cast will be available on GMXR's website for 30 days.

GMX RESOURCES INC. is a rapidly growing 'small cap' E & P company with high quality unconventional gas resources, currently drilling horizontal in its Cotton Valley (CV) Gas Resource Play on the Sabine Uplift; North Carthage Field, East Texas, Panola & Harrison County, developing its Upper CV "Tight Gas Sands" and Lower CV Bossier "Gas Shales", also containing Travis Peak/Hosston Sands & Pettit Sands and Limes. These key resource layers provide repeatable organic growth for the company; Core Area 99% of NAV; 93% Natural Gas. GMXR has drilled to date 103 CV Wells, 7 Travis Peak Wells since inception in 1998; 28,973 gross / 15,268 net acres in LCV layers; 724 gross / 431 net CVS 40 acre locations; 5 Yrs of 40 acre Development with 7-10 Rigs, 11 Yrs of 20 acre development. Headquartered in Oklahoma City, Oklahoma, GMXR has interests in 141 gross/ 80.72 net producing wells and operates 60% of its reserves. YTD price range $50.50 - $25.17; Average Daily Volume last 90 trading days - 272,000 shares; Common Stock Outstanding - 11,214,967 shares; Institutional Ownership approximately 67% at June 30, 2006; Management maintains 21% equity stake. The Company's strategy is to develop its resource play with multiple rigs, increase production, grow its natural gas reserves and continue to build shareholder value.

This press release includes certain statements that may be deemed to be "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. All statements, other than statements of historical facts, included in this press release that address activities, events or developments that the company expects, believes or anticipates will or may occur in the future are forward-looking statements. They include statements regarding the company's financing plans and objectives, drilling plans and objectives, related exploration and development costs, number and location of planned wells, reserve estimates and values, statements regarding the quality of the company's properties and potential reserve and production levels. These statements are based on certain assumptions and analysis made by the company in light of its experience and perception of historical trends, current conditions, expected future developments, and other factors it believes appropriate in the circumstances, including the assumption that there will be no material change in the operating environment for the company's properties. Such statements are subject to a number of risks, including but not limited to commodity price risks, drilling and production risks, risks relating to the company's ability to obtain financing for its planned activities, risks related to weather and unforeseen events, governmental regulatory risks and other risks, many of which are beyond the control of the company. Reference is made to the company's reports filed with the Securities and Exchange Commission for a more detailed disclosure of the risks. For all these reasons, actual results or developments may differ materially from those projected in the forward-looking statements.