Attached files
file | filename |
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8-K - CURRENT REPORT ON FORM -K - MAGNUM HUNTER RESOURCES CORP | magnum_8k-102309.htm |
EX-99.1 - PRESS RELEASE - ASSET PURCHASE AGREEMENT - MAGNUM HUNTER RESOURCES CORP | magnum_8k-ex9901.htm |
EX-99.4 - UNAUDITED PRO FORMA FINANCIAL DATA - MAGNUM HUNTER RESOURCES CORP | magnum_8k-ex9904.htm |
EX-23.2 - CONSENT - MAGNUM HUNTER RESOURCES CORP | magnum_8k-ex2302.htm |
EX-23.1 - CONSENT - MAGNUM HUNTER RESOURCES CORP | magnum_8k-ex2301.htm |
EX-99.3 - AUDITED FINANCIAL STATEMENTS - MAGNUM HUNTER RESOURCES CORP | magnum_8k-ex9903.htm |
EX-2.1 - ASSET PURCHASE AGREEMENT - MAGNUM HUNTER RESOURCES CORP | magnum_8k-ex0201.htm |
Exhibit 99.2
NEWS
RELEASE
|
FOR IMMEDIATE
RELEASE
|
MAGNUM
HUNTER RESOURCES CORP.
ANNOUNCES
NEW
$150
MILLION SENIOR SECURED REVOLVING CREDIT FACILITY
Houston – (Market Wire) – October 26,
2009 – Magnum Hunter Resources Corporation’s (NYSE Amex: MHR, the
“Company”) announced today that the Company has received a commitment for a new
$150 million three-year term senior secured revolving credit facility (“the new
bank facility”) provided by the Bank of Montreal (“BMO”). The new
bank facility will be used for general corporate purposes, including the
acquisition of crude oil and natural gas properties
The new
bank facility will be governed by a semi-annually redetermined borrowing base
value assigned to the Company’s proved crude oil and natural gas
reserves. An initial borrowing base of $25 million has been
established. Based on values assigned to crude oil and natural gas
properties which may be either acquired or discovered over time, the Company’s
borrowing base may be increased up to a maximum of $150 million commitment
level.
All other
terms and conditions are those usual and customary for this type of commercial
bank borrowing facility. The applicable interest rate margin for this
new bank facility will range from LIBOR plus 2.50% to LIBOR plus 3.50% depending
on the actual level of outstanding borrowings. The final agreement
which includes the specific terms and covenants governing the Company’s new bank
facility will be filed with the Securities and Exchange Commission at
closing.
BMO will
act as Lead Arranger, Book Runner and Administrative Agent for the Company’s new
bank facility. It is anticipated that the final closing of this new
bank facility will occur by November 15, 2009.
Management
Comments
Mr.
Ronald D. Ormand, Executive Vice President and Chief Financial Officer of the
Company, commented, “As part of our strategy to position the Company for future
growth, we are pleased to have received this new $150 million revolving credit
facility. We appreciate the work performed by the senior credit
officers at the Bank of Montreal to put this new lending facility into place
during a difficult period in the overall financial markets. Having
one of the premier lenders to the North American energy industry approving a
$150 million facility is a testament to senior management’s track record with
the banking industry, as well as our relationship with BMO in
particular. The new credit facility will allow the Company to make
accretive oil and gas property acquisitions to enhance shareholder
value. Magnum Hunter now has increased financial capabilities,
allowing the Company to continue moving forward on the growth and acquisition
efforts we initiated several months ago.”
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
1
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.
####
Contact: M. Bradley
Davis
Senior
Vice President of Capital Markets
bdavis@magnumhunterresources.com
(832)
203-4545
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