Contact Information: Contact: M. Bradley Davis Senior Vice President of Capital Markets bdavis@magnumhunterresources.com (832) 203-4545
Magnum Hunter Resources Announces Confirmation by U.S. Bankruptcy Court of Triad Energy's Plan of Reorganization
| Source: Magnum Hunter Resources
HOUSTON, TX--(Marketwire - January 28, 2010) - Magnum Hunter Resources Corp. (NYSE Amex : MHR )
(NYSE Amex : MHR-PC ) (the "Company") announced today that the United States
Bankruptcy Court for the Southern District of Ohio, Eastern Division (the
"Bankruptcy Court") had entered an order (the "Confirmation Order")
confirming Triad Energy Corp.'s ("Triad") Plan of Reorganization. The
Confirmation Order ratifies and approves Magnum Hunter's Asset Purchase
Agreement to acquire substantially all of the assets of Triad and certain
of its affiliated entities which was originally executed on October 28,
2009.
The Triad assets being acquired primarily consist of oil and gas property
interests in approximately 2,000 operated wells and include over 88,000 net
mineral acres located in the states of Kentucky, Ohio, and West Virginia, a
natural gas pipeline, salt water disposal facilities, three drilling rigs,
workover rigs, and other oilfield equipment.
The Company anticipates the financial closing of the Triad acquisition will
be prior to February 15, 2010.
Management Comments
Mr. Gary C. Evans, Chairman of the Company, commented, "We are very pleased
to announce final approval by the Bankruptcy Court of our acquisition of
the assets of Triad Energy and its related entities. This has been a long
road for us in reaching our ultimate goal of confirmation by the Bankruptcy
Court. We can now begin the procedure of integrating Triad's diverse group
of assets and their employees into our existing base of operations when we
close in a couple of weeks. Along with the tremendous upside from an
approximate 50,000 net mineral acreage position in the Marcellus Shale, we
believe there exists additional upside potential for shareholder value
enhancement within the existing Triad asset portfolio. In establishing
this new core area of operation for the Company, Magnum Hunter now has one
of the most cost effective ownership positions in the Appalachian Basin,
especially in the emerging Marcellus Shale play that continues to expand in
our region. We are planning on drilling a minimum of two Marcellus
horizontal wells on our acquired acreage before mid-year. The opportunity
for booking proven reserves is substantial since no proven undeveloped
reserves have previously been accounted for in the Marcellus Shale."
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.