Contact Information: Contact: M. Bradley Davis Senior Vice President of Capital Markets bdavis@magnumhunterresources.com (832) 203-4545
Magnum Hunter Resources Announces an Additional $4.325 Million in a Registered Direct Offering
| Source: Magnum Hunter Resources
HOUSTON, TX--(Marketwire - November 11, 2009) - Magnum Hunter Resources Corporation (NYSE Amex : MHR ) (the "Company") announced today that it has entered into definitive
agreements with certain institutional investors to sell an additional
2,500,000 units to investors that participated in the $6.75 million
offering, with each unit consisting of one of the Company's common shares
and a one fifth of a warrant to purchase one common share, for gross
proceeds of approximately $4.325 million, before deducting placement agent
fees and estimated offering expenses, in a "registered direct" offering.
The total amount raised in the "registered direct" offering amounts to
$11.078 million of gross proceeds before deducting placement agent fees and
estimated offering expenses. The investors have agreed to purchase the
units at a purchase price of $1.73 per unit. The warrants, which represent
the right to acquire an aggregate of up to 500,000 common shares, will be
exercisable at any time on or after May 17, 2010 and prior to the 3-year
anniversary of the closing of the transaction at an exercise price of $2.50
per share, which was 145% of the closing price of the Company's common
shares on the NYSE AMEX on November 11, 2009. Canaccord Adams Inc. acted
as the sole placement agent for the offering
The transaction is expected to close on November 16, 2009, subject to
customary closing conditions. Magnum Hunter intends to use the proceeds
from the offering to repay current borrowings under its revolving credit
facility, to pursue acquisition opportunities, and for other working
capital purposes. The new equity capital raised in these offerings
satisfies the Company's minimum equity commitment required under the terms
of the Asset Purchase Agreement in connection with the acquisition of Triad
Energy Corporation and certain affiliates announced on October 29, 2009.
A shelf registration statement relating to these securities previously was
filed and declared effective by the Securities and Exchange Commission. A
prospectus supplement related to the offering will be filed with the
Securities and Exchange Commission. This press release does not constitute
an offer, solicitation, or sale of any security in any jurisdiction in
which such offer, solicitation, or sale would be unlawful. A copy of the
base prospectus and prospectus supplement (once filed) can be obtained at
the Securities and Exchange Commission's website http://www.sec.gov or via
written request to Magnum Hunter Resources Corporation at 777 Post Oak
Blvd., Suite 910, Houston, TX, 77056, Attention: Investor Relations.
MAGNUM HUNTER RESOURCES CORPORATE PROFILE
Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas
based independent exploration and production company engaged in the
acquisition of exploratory leases and producing properties, secondary
enhanced oil recovery projects, exploratory drilling, and production of oil
and natural gas in the United States. The Company is presently active in
three of the "big four" emerging shale plays in the United States.
For more information, please view our website at http://www.magnumhunterresources.com/
FORWARD-LOOKING STATEMENTS
The statements contained in this press release that are not historical are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and Section 21E
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
including statements, without limitation, regarding the Company's
expectations, beliefs, intentions or strategies regarding the future. Such
forward-looking statements may relate to, among other things: (1) the
Company's proposed exploration and drilling operations on its and Triad's
various properties, (2) the expected production and revenue from its and
Triad's various properties, (3) the Company's proposed redirection as an
operator of certain properties and (4) estimates regarding the reserve
potential of its and Triad's various properties. These statements are
qualified by important factors that could cause the Company's actual
results to differ materially from those reflected by the forward-looking
statements. Such factors include but are not limited to: (1) the
Company's ability to finance the continued exploration, drilling and
operation of its and Triad's various properties, (2) positive confirmation
of the reserves, production and operating expenses associated with its and
Triad's various properties; and (3) the general risks associated with oil
and gas exploration, development and operation, including those risks and
factors described from time to time in the Company's reports and
registration statements filed with the Securities and Exchange Commission,
including but not limited to the Company's Annual Report on Form 10-K, Form
10-K/A and Form10-K/A for the year ended December 31, 2008 filed with the
Securities and Exchange Commission on March 31, 2009, April 29, 2009 and
September 11, 2009, respectively, and the Company's Quarterly Reports on
Form 10-Q for the quarters ending March 31, 2009 and June 30, 2009, filed
on May 11, 2009 and August 14, 2009, respectively. The Company cautions
readers not to place undue reliance on any forward-looking statements. The
Company does not undertake, and specifically disclaims any obligation, to
update or revise such statements to reflect new circumstances or
unanticipated events as they occur.