Stocks & Investing
Stocks and Investing
Stocks and Investing
Wed, July 29, 2009
Tue, July 28, 2009 Magnum Hunter Resources Corporation: Magnum Hunter Resources Corporation Announces Mid-Year 2009 Proved Reserves Up 13% Present
HOUSTON, TX--(Marketwire - July 28, 2009) - Magnum Hunter Resources Corporation (
Proved Reserves increased 408,000 Boe's to 3.5 Million Boe's (79% crude oil & ngl's, 49% Proved Developed Producing) as of June 30, 2009 as compared to 3.1 Million Boe's (77% crude oil and ngl's, 47% Proved Developed Producing) at December 31, 2008.
Magnum Hunter's June 30, 2009 Standardized Measure of Future Cash Flows increased to $43.7 Million, up $22.7 Million from the December 31, 2008 calculation of $21.0 Million. Along with the 13% increase to actual Proved Reserves at June 30, 2009 as compared to December 31, 2008, crude oil pricing used by the Company at June 30, 2009 was $69.89 per barrel, up 57% from $44.60 per barrel at December 31, 2008. However, natural gas prices decreased (33%) from $5.71 per MMBTU to $3.835 per MMBTU at June 30, 2009.
Approximately 95% of the Company's Proved Reserves and 95% of the value in the Company's Standardized Measure of Discounted Future Cash Flows calculation as of June 30, 2008 were prepared by the Company's third party engineering firms, Cawley, Gillespie & Associates, Inc. and DeGolyer & McNaughton.
Management Comments
Mr. Gary C. Evans, Chairman of the Company, commented, "Our reserve profile is currently leveraged to crude oil pricing which was beneficial to the Company earlier this year. The 25% increase to crude oil prices from year-end to mid-year, which resulted in an over 100% increase in the Company's present value discounted @ 10% of proved reserves, reflects this leverage. As previously reported, Magnum Hunter is now focused on acquisitions and development of predominately distressed properties owned by banks, financial institutions, private equity funds, and hedge funds. We remain excited about the many new opportunities the management team is presently evaluating. We believe the timing with respect to booking new Proved Reserves during the present down cycle will provide superior returns to our shareholders once commodity prices begin to recover over the next several years."
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.
