Magnum Hunter Announces Proposed Offering of 35M Shares

Magnum Hunter Resources Corporation

announced today that, subject to market conditions, it is commencing an offering of 35,000,000 shares of its common stock (the "Offering") in an underwritten public offering. Magnum Hunter expects to grant the underwriters a 30-day over allotment option to purchase up to an additional 5,250,000 shares of Magnum Hunter's common stock. Magnum Hunter anticipates using the net proceeds from the Offering (i) to finance a portion of the proposed $311 million previously announced acquisition of oil properties in the Williston Basin and (ii) for general corporate purposes which may include future redemption of a portion or all of the Company's outstanding Series C Preferred Stock. Upon completion of the Offering, the Company will have enhanced liquidity and intends to increase its 2012 upstream capital budget to $325 million from its original preliminary upstream budget of $150 million. Approximately 92% of the revised capital budget will be dedicated to the Company's oil plays (the Eagle Ford Shale and the Williston Basin) with the remainder dedicated to the Company's existing liquids rich Marcellus and Utica Shale properties. The revised upstream budget will be allocated to the various divisions as further detailed below. Upon completion of the Baytex Acquisition and the expansion of the capital budget program, the Company is now projecting to exit 2012 with a daily production rate of 18,000 boe of which approximately 65% of such volumes being oil/liquids.