Magnum Hunter Resources Corporation says that the Company's Board of Directors has approved a $30.0 million increase to Magnum Hunter's fiscal year 2010 capital expenditures ('capex') budget. The 2010 capex budget does not include any potential expenditures which may occur for possible acquisition activities. The increased 2010 capex budget remains predominately focused on capital expenditures necessary to expand the exploration and development activities associated with the Company's increased drilling activities in certain unconventional resource plays including the Eagle Ford Shale play in Central and South Texas and in the Marcellus Shale play of northwestern West Virginia.

The Company plans to fund the increased fiscal year 2010 capex budget from a combination of existing liquidity (approximately $18 million) and from internally generated sources of cash flows.

In the Eagle Ford Shale located in Central and South Texas, Magnum Hunter has allocated approximately $30.0 million of capex (56% of the total). The first of these three wells is on schedule to spud on or about June 1st. A drilling rig has been contracted by Magnum Hunter to drill all three of the planned wells in the Eagle Ford Shale resource play back-to-back. The first well will be located in Gonzales County, the second well is planned for Atascosa County, and the location of the third well has yet to be determined. The balance of the Company's 2010 capex budget for this region will be for additional leasing related activities that are currently ongoing.

Magnum Hunter has allocated approximately $18.0 million of the 2010 capex budget (approximately 32% of the total) directed to the recently acquired Triad assets in northwestern West Virginia, including (i) $7.0 million to horizontally drill two Marcellus Shale locations in Tyler County, West Virginia prior to year-end 2010, and (ii) $8.5 million of the 2010 capex budget on upgrading, expanding and completing the Eureka Hunter Pipeline system located in West Virginia acquired with the Triad transaction. The new leg of this system currently under construction is anticipated to be operational by late August 2010. The balance of the Company's capex budget in Appalachia will be for new leasing activity and other oil and gas related projects including the expansion of an existing commercial saltwater disposal facility.

The remaining $7.0 million (12% of the total) will be directed toward ongoing exploration and development operations associated with Magnum Hunter's ownership interest in the Cinco Terry field of West Texas and for the drilling of two new wells in the Company operated East Chalkley oil field of South Louisiana.

Tags: Magnum Hunter Resources Corporation