Contact Information: Contact: M. Bradley Davis Senior Vice President of Capital Markets bdavis@magnumhunterresources.com (832) 203-4545
Magnum Hunter Resources Corp. Closes Acquisition of Sharon Resources, Inc.
| Source: Magnum Hunter Resources
HOUSTON, TX--(Marketwire - September 30, 2009) - Magnum Hunter Resources Corporation (NYSE Amex : MHR ) (the "Company") announced today the Company has closed on the
previously announced agreement to acquire 100% of the capital stock of
Sharon Resources, Inc., a wholly owned subsidiary of Calgary based Sharon
Energy Ltd. (TSX-V : SHY ). Magnum Hunter previously announced the execution
of a definitive agreement for the acquisition on September 10, 2009.
Total consideration paid by Magnum Hunter for Sharon Resources, Inc. was
$2.35 Million (USD) and was 100% paid through the issuance of 2,294,474 new
restricted common shares of the Company. Post the acquisition, the number
of the Company's fully-diluted common shares outstanding is approximately
43.1 Million. No debt or other liabilities were assumed by Magnum Hunter
and no other consideration beyond the issuance of the new Magnum Hunter
restricted common shares described above were tendered to complete this
acquisition.
About Magnum Hunter Resources
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.
For more information, please view our website at
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 and June 30, 2009, filed on My 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.