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8-K - MAGNUM HUNTER RESOURCES CORP FORM 8-K - MAGNUM HUNTER RESOURCES CORP | magnum_8k-111109.htm |
Exhibit 99.1
Magnum
Hunter Resources Announces $6.75 Million Registered Direct Offering
HOUSTON –
November 11, 2009 – Magnum Hunter Resources Corporation (NYSE Amex: MHR, the
“Company”) announced today that it has entered into definitive agreements
with certain institutional investors to sell 3,903,720 units, with
each unit consisting of one of the Company’s common shares and a one fifth of a
warrant to purchase one common share, for gross proceeds of approximately $6.75
million, before deducting placement agent fees and estimated offering expenses,
in a "registered direct" offering. The investors have agreed to
purchase the units at a purchase price of $1.73 per unit. The warrants, which
represent the right to acquire an aggregate of up to 780,744 common shares, will
be exercisable at any time on or after May 17, 2010 and prior to the 3-year
anniversary of the closing of the transaction at an exercise price of $2.50 per
share, which was 132% of the closing price of the Company’s common shares on the
NYSE AMEX on November 10, 2009. Canaccord Adams Inc. acted as the
sole placement agent for the offering.
The
transaction is expected to close on November 16, 2009, subject to customary
closing conditions. Magnum Hunter intends to use the proceeds from the offering
to repay current borrowings under its revolving credit facility, to pursue
acquisition opportunities, and for other working capital purposes.
A shelf
registration statement relating to these securities previously was filed and
declared effective by the Securities and Exchange Commission. A
prospectus supplement related to the offering will be filed with the Securities
and Exchange Commission. This press release does not constitute an
offer to sell or the solicitation of offers to buy any security and shall not
constitute an offer, solicitation, or sale of any security in any jurisdiction
in which such offer, solicitation, or sale would be unlawful. A copy
of the base prospectus and prospectus supplement (once filed) can be obtained at
the Securities and Exchange Commission’s website http://www.sec.gov or via
written request to Magnum Hunter Resources Corporation at 777 Post Oak
Boulevard, Suite 910, Houston, TX, 77056, Attention Investor
Relations.
About
Magnum Hunter Resources
Magnum
Hunter Resources Corporation and subsidiaries are a Houston, Texas headquartered
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 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 our subsequently filed reports. 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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Contact:
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M.
Bradley Davis
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Senior
Vice President of Capital Markets
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bdavis@magnumhunterresources.com
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(832)
369-6986 Ext 226
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