Magnum Hunter Resources Corporation reported that the Company's borrowing base under its $350 million Senior Bank Facility, which consists of a $250 million Senior Revolving Credit Facility and a $100 million Term Loan Facility, has been increased by $35 million from $200 million to $235 million. The 17.5% increase in Magnum Hunter's borrowing base is entirely due to organic growth of the Company's existing proved reserve base due to the successful drilling activities in its three unconventional resource plays. As previously announced, Magnum Hunter's proved reserves increased by 21% to 45 million BOE from September 30, 2011 to December 31, 2011.

As a result of the New Borrowing Base and availability under the Company's Senior Revolving Credit Facility, as of February 14, 2012, the Company had approximately $80 million of cash and existing liquidity under its Senior Credit Facility and total liquidity of approximately $120 million including the Eureka Hunter Credit Facility. In addition, the Company has raised over $21 million year-to-date in our Series D Preferred Stock (non-convertible) and anticipates additional issuances throughout 2012. The additional liquidity from these sales provides the Company further financial support to fund its 2012 upstream capital program.

Mr. Ronald D. Ormand, Executive Vice President and Chief Financial Officer of Magnum Hunter, commented, "We are very pleased to announce another increase in our Company's borrowing base to $235 million, our sixth increase in the last twelve months. The New Borrowing Base represents an increase of 17.5% over our previous Borrowing Base established at September 30, 2011 and has grown entirely due to the success of the drilling programs in each of the Company's three resource plays. In addition, the New Borrowing Base provides additional liquidity to fund our 2012 capital budget. We were also successful in adding a new lender, Royal Bank of Canada, to our bank lending syndicate group. The Company remains fully funded on its previously announced 2012 capital budget of $200 million."

Tags: Magnum Hunter Resources Corporation