(AMEX:MHR) Announces Registered Direct Offering, Shares Fall 10%

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Magnum Hunter Resources Corporation (AMEX:MHR) decreases 10.58% to $1.69 after the company announced 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. 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.

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