Oklahoma City-Based GMX Shareholder Requests Evaluation of Strategy

Article excerpt

The largest single shareholder of GMX Resources common stock has requested an evaluation of strategic options.

In a letter to Ken L. Kenworthy Jr., president, CEO and chairman of the board of Oklahoma City-based GMX, Peter K. Seldin, managing member of Centennial Energy Partners, said through various entities Centennial owns nearly 2.85 million shares, or 15.2 percent, of GMX common stock.

"We are concerned with the precipitous decline in GMX's share price in recent weeks," Seldin said in the letter.

In Nasdaq trading Wednesday, GMX closed at $7.39, up 34 cents, or 4.82 percent. The stock has traded as high as $25.72 within the last month. The 52-week range is $88.35 and $6.51.

"In addition, we are concerned that without immediate actions by GMX's board of directors, GMX will not be able to realize the value of its assets," Seldin said.

Seldin said the strategic options should include the potential sale of the company.

"The company's board of directors will consider Mr. Seldin's request in due course," GMX said in a press release Wednesday responding to the letter. "However, in the meantime, the company continues to operate its business in the ordinary course and believes that its current business plan reflects a balanced and prudent approach in light of currently prevailing economic conditions."

A copy of the letter was included with a Securities and Exchange Commission filing by GMX.

Seldin founded New York-based Centennial Energy Partners in 1994. He is a graduate of Princeton University and the Graduate School of Business at Stanford University.

Centennial also is the largest shareholder in Houston-based Tesco Corp., owning 16.9 percent of the drilling services provider. Seldin is a Tesco director.

GMX received the letter Tuesday, a day after it announced a reduction in planned capital expenditures and drilling for 2009. …