Attached files
| file | filename |
|---|---|
| 8-K - CURRENT REPORT ON FORM 8-K - MAGNUM HUNTER RESOURCES CORP | mhr_8k-111009.htm |
| EX-4.1 - FORM OF WARRANT - MAGNUM HUNTER RESOURCES CORP | mhr_8k-ex401.htm |
| EX-10.2 - PLACEMENT AGENCY AGREEMENT - MAGNUM HUNTER RESOURCES CORP | mhr_8k-ex1002.htm |
| EX-10.1 - FORM OF SUBSCRIPTION AGREEMENT - MAGNUM HUNTER RESOURCES CORP | mhr_8k-ex1001.htm |
| EX-10.3 - PLACEMENT AGENCY AGREEMENT - MAGNUM HUNTER RESOURCES CORP | mhr_8k-ex1003.htm |
Exhibit 99.1
|
NEWS
RELEASE
|
 |
FOR
IMMEDIATE RELEASE
|
MAGNUM
HUNTER RESOURCES
ANNOUNCES
AN ADDITIONAL $4.325 MILLION
IN
A REGISTERED DIRECT OFFERING
HOUSTON – (Market Wire) – 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 an additional 2,500,000 units to
investors that participated in the $6.75 million offering, 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 $4.325 million,
before deducting placement agent fees and estimated offering expenses, in a
"registered direct" offering. The total amount raised in the
"registered direct" offering amounts to $11.078 million of gross proceeds before
deducting placement agent fees and estimated offering expenses. 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
500,000 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 145% of the closing price of the
Company’s common shares on the NYSE AMEX on November 11,
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. The new equity capital raised in these offerings satisfies
the Company’s minimum equity commitment required under the terms of the Asset
Purchase Agreement in connection with the acquisition of Triad Energy
Corporation and certain affiliates announced on October 29, 2009.
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, 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
Blvd., Suite 910, Houston, TX, 77056, Attention: Investor
Relations.
MAGNUM
HUNTER RESOURCES CORPORATE PROFILE
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 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 and Triad’s various properties, (2) the expected
production and revenue from its and Triad’s various properties, (3) the
Company’s proposed redirection as an operator of certain properties and (4)
estimates regarding the reserve potential of its and Triad’s 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 and Triad’s
various properties, (2) positive confirmation of the reserves, production and
operating expenses associated with its and Triad’s 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 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.
####
Contact: M. Bradley
Davis
Senior
Vice President of Capital Markets
bdavis@magnumhunterresources.com
(832)
203-4545