Magnum Hunter Resources Announces Expanded Senior Bank Credit Facility

HOUSTON, TX--(Marketwire - Jul 13, 2011) - Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE Amex: MHR-PrC) (NYSE Amex: MHR-PrD) (the "Company" or "Magnum Hunter") announced today that the Company's borrowing base under its $250 million senior secured revolving credit facility ("the Bank Facility") has been increased by $25 million from $145 million to $170 million (the "new borrowing base"). The 17% increase in Magnum Hunter's borrowing base is entirely due to organic growth of the Company's existing proved reserve base which includes the growth in reserves from the two recently closed corporate acquisitions of NGAS and NuLoch.

The applicable interest rate margin of the Bank Facility will range from LIBOR plus 2.50% to LIBOR plus 3.50%, depending on the amount drawn at any given time on the Bank Facility. Other amendments to the existing credit facility include no interest rate floor. The amendment to the revolving credit facility agreement will be filed with the Securities and Exchange Commission in due course. The Bank Facility is governed by a semi-annual borrowing base redetermination derived from the Company's total proved crude oil and natural gas reserves.

As of June 30, 2011, the Company had $139 million of outstanding indebtedness under its existing bank credit facility which with cash provides for approximately $32 million of liquidity based on the new borrowing base amount.

The Company is in the process of preparing a new third party engineering reserve report as of June 30, 2011 which will incorporate reserve additions achieved during the second quarter of 2011. Management anticipates an additional increase in the Company's borrowing base under its senior credit facility once that report is completed and presented to the Bank Group during the third quarter of 2011.

Bank of Montreal serves as the "Administrative Agent" under the facility, with Capital One, N.A. serving as the "Syndication Agent," and Amegy Bank National Association, KeyBank National Association and UBS Securities LLC serving as "Documentation Agents." BMO Capital Markets serves as "Lead Arranger" and "Sole Bookrunner." Participating banks include Citibank, N.A., Credit Suisse AG, Deutsche Bank Trust Company Americas, and Union Bank, N.A.

About Magnum Hunter Resources Corporation

Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas based independent exploration and production company engaged in the acquisition, development and production of oil and natural gas, primarily in the states of West Virginia, Kentucky, Ohio, Texas, and North Dakota and in Saskatchewan, Canada. The Company is presently active in three of the most prolific shale resource plays in North America, namely the Marcellus Shale, Eagle Ford Shale and Williston Basin/Bakken Shale.

For more information, please view our website at http://www.magnumhunterresources.com/

Forward-Looking Statements

The statements and information contained in this press release that are not statements of historical fact, including all estimates and assumptions contained herein, are "forward looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. These forward looking statements include, among others, statements, estimates and assumptions relating to our business and growth strategies, our oil and gas reserve estimates, our ability to successfully and economically explore for and develop oil and gas resources, our exploration and development prospects, future inventories, projects and programs, expectations relating to availability and costs of drilling rigs and field services, anticipated trends in our business or industry, our future results of operations, our liquidity and ability to finance our exploration and development activities, market conditions in the oil and gas industry and the impact of environmental and other governmental regulation. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may", "will", "could", "should", "expect", "intend", "estimate", "anticipate", "believe", "project", "pursue", "plan" or "continue" or the negative thereof or variations thereon or similar terminology. These forward-looking statements are subject to numerous assumptions, risks, and uncertainties. Factors that may cause our actual results, performance, or achievements to be materially different from those anticipated in forward-looking statements include, among other, the following: adverse economic conditions in the United States and globally; difficult and adverse conditions in the domestic and global capital and credit markets; changes in domestic and global demand for oil and natural gas; volatility in the prices we receive for our oil and natural gas; the effects of government regulation, permitting, and other legal requirements; future developments with respect to the quality of our properties, including, among other things, the existence of reserves in economic quantities; uncertainties about the estimates of our oil and natural gas reserves; our ability to increase our production and oil and natural gas income through exploration and development; our ability to successfully apply horizontal drilling techniques and tertiary recovery methods; the number of well locations to be drilled, the cost to drill, and the time frame within which they will be drilled; drilling and operating risks; the availability of equipment, such as drilling rigs and transportation pipelines; changes in our drilling plans and related budgets; and the adequacy of our capital resources and liquidity including, but not limited to, access to additional borrowing capacity. Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such statements. Readers are cautioned not to place undue reliance on forward-looking statements, contained herein, which speak only as of the date of this document. Other unknown or unpredictable factors may cause actual results to differ materially from those projected by the forward-looking statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, including estimates, whether as a result of new information, future events, or otherwise. We urge readers to review and consider disclosures we make in our public filings made from time to time with the Securities and Exchange Commission that discuss factors germane to our business, including our Annual Report on Form 10-K, as amended for the year ended December 31, 2010 and our Quarterly Report on Form 10-Q for the quarter ended March 31, 2011. All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements.