SOURCE: Magnum Hunter Resources

Magnum Hunter Resources

February 03, 2010 09:00 ET

Magnum Hunter Resources Announces Successful Results for the Company Operated Eberstadt # 1 Well Located in Bee County, Texas

HOUSTON, TX--(Marketwire - February 3, 2010) - Magnum Hunter Resources Corporation (NYSE Amex: MHR) (NYSE Amex: MHR-PC) (the "Company" or "Magnum Hunter") announced today successful drilling and completion results for the Company operated Eberstadt # 1 well located in the South Caesar Field of Bee County Texas. The Eberstadt # 1 began flowing to sales on February 1, 2010 with a daily production rate of approximately 1,500 Mcf. The Company spudded the Eberstadt # 1 on November 24, 2009, completed the well on December 18, 2009, and fraced the well on January 28, 2010. Total depth of the Eberstadt #1 is 10,600 vertical feet with production from a gross 100 foot thick section of the middle Wilcox formation. Currently, the Eberstadt #1 is exhibiting a flowing tubing pressure of 3,600 psi through a 12/64 inch choke. Expected levels of daily production are anticipated to increase as the well is still cleaning up post the January 28th frac.

The Company's working interest in this well and acreage position is 51.1% (net revenue interest is 38.3%). With successful completion and startup of production, the Eberstadt #1 sets up a 464 acre natural gas unit out of 950 total acres under lease. Company management believes at least two additional locations can be drilled on this acreage position in the future. The total cost to drill and complete the Eberstadt #1 was approximately $2.0 million to the 100% working interest.

Management Comments

Mr. H.C. "Kip" Ferguson, EVP of Exploration of the Company, commented, "We are pleased to announce successful results for our new discovery, the Eberstadt #1 well. This Company operated lease associated with this well was acquired in the Sharon Resources acquisition we completed last September and is indicative of the quality of many unbooked prospects within our portfolio today. Although Magnum Hunter's primary emphasis going forward will be on adding incremental shareholder value from developing our substantial unconventional acreage positions in the Marcellus Shale and Eagle Ford Shale regions, the Company does have residual conventional properties which we will continue to evaluate as we are striving to achieve the highest possible return on our existing assets."

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 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 various properties, (2) the expected production and revenue from its various properties, (3) the Company's proposed redirection as an operator of certain properties and (4) estimates regarding the reserve potential of its 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 various properties, (2) positive confirmation of the reserves, production and operating expenses associated with its 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, June 30, 2009 and September 30, 2009, filed on May 11, 2009, August 14, 2009 and November 16, 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.

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