SOURCE: Magnum Hunter Resources

Magnum Hunter Resources

September 15, 2009 09:16 ET

Magnum Hunter Resources Corporation Announces $1.7 Million Producing Property Acquistion in East Chalkley Field

HOUSTON, TX--(Marketwire - September 15, 2009) - Magnum Hunter Resources Corporation (NYSE Amex: MHR) (the "Company") announced today the execution of a definitive agreement to acquire an additional 37.5% working interest in the Company operated East Chalkley Field from an undisclosed private seller. The East Chalkley Field is located in Cameron Parish, Louisiana.

Magnum Hunter has an approximate 34.4% working interest covering approximately 714 gross mineral acres in the East Chalkley Field. Today's announced purchase will increase the Company's working interest to approximately 72%. Funding will be from the Company's existing cash. The effective date for this purchase will be July 1, 2009 with an anticipated closing date on or about October 15, 2009.

The Company operates the East Chalkley Field where the recent focus has been on developing and producing crude oil reserves bypassed earlier in the history of the field when the focus was on developing deep natural gas reserves. Currently, the East Chalkley Field is producing approximately 80 to 90 Barrels of Oil Equivalent ("BOEs") per day net to the Company's pre-purchase working interest. With the additional acquisition of the ownership interest announced today, the Company's net daily production from this field will increase to the new range of 170 to 190 BOEs per day.

Additionally, three new drill site locations have been identified within this field by the Company and its third party petroleum engineers. Magnum Hunter had approximately 93.0 MBOEs booked as net proved reserves in the East Chalkley Field as of June 30, 2009 (37% proved developed producing and 94% crude oil) and pro forma for the acquisition, there will be 258.5 MBOEs attributable to the East Chalkey Field.

Management Comments

Mr. Gary C. Evans, Chairman of the Company, commented, "Our announcement today of the acquisition of an additional ownership interest in the Magnum Hunter operated East Chalkley Field, advances our previously stated focus on acquisitions and development of predominately crude oil properties. The best place to find incremental crude oil and natural gas reserves is where they have previously been found before. With a 72% working interest and operations of the East Chalkley Field, we now have greater control of the Company's future activities in this region. We are in the process of implementing additional cost reductions in this field which include a new saltwater disposal system. We continue to believe that the present low commodity price environment presents our Company with significant upside potential with respect to booking new proved reserves for generation of superior returns to our shareholders once commodity prices begin recovering over the next several years as the supply and demand for commodities are rebalanced."

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/A and Form 10-K/A for the year ended December 31, 2008 filed with the Securities and Exchange Commission on March 31, 2009 and April 29, 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.

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