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HOUSTON, TX -- (Marketwire) -- 03/01/13 -- Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) (the "Company" or "Magnum Hunter") announced today that the Company's conforming borrowing base under its $750 million Senior Bank Facility (the "Senior Credit Facility"), has been increased by $43.75 million from $306.25 million to $350 million (the "New Borrowing Base"). The 14.3% 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. Effective with this increase in the conforming borrowing base, the previous non-conforming borrowing base tranche under the Senior Credit Facility of $31.25 has been eliminated. The non-conforming tranche was added in the fourth quarter of 2012 to support the Company's 2012 capital expenditures primarily related to the drilling program. However, as a result of issuances of Senior Notes and Preferred Stock and this new conforming borrowing base increase, the Company no longer has a need for the additional capital.

As a result of the New Borrowing Base and availability under the Company's Senior Revolving Credit Facility, as of March 1, 2013, the Company had approximately $115 million of total liquidity including cash and borrowing base availability under its New Borrowing Base. In addition, the Company has raised over $10 million of net proceeds year-to-date from the issuance of our Series D and Series E Preferred Stock. The Company anticipates additional liquidity to be generated from additional borrowing base increases and possible additional issuances of Preferred Stock later this year. In addition, the Company presently anticipates further liquidity to be generated from its monetization of selected assets planned for 2013. The Company presently has the ability to fully fund its 2013 upstream capital budget program of $300 million, and these additional sources will provide further improved liquidity.

The applicable interest rate margin of the Senior Credit Facility was lowered to range from LIBOR plus 2.00% to LIBOR plus 2.75%, depending on the amount drawn at any given time on the Senior Credit Facility. The Senior Credit Facility is governed by a semi-annual borrowing base redetermination derived from the Company's total proved crude oil and natural gas reserves. The next scheduled redetermination of the borrowing base is scheduled for November 2013.

Bank of Montreal serves as the "Administrative Agent" under the Senior Credit Facility, with Capital One, N.A. serving as the "Syndication Agent". Other banks in the Senior Credit Facility include ABN AMRO, Amegy Bank National Association, Bank of America, Citibank, N.A., Credit Suisse AG, Deutsche Bank Trust Company Americas, KeyBank National Association, Royal Bank of Canada, SunTrust Bank, Goldman Sachs Bank USA and UBS.

Magnum Hunter Management Comments

Mr. Ronald D. Ormand, Executive Vice President and Chief Financial Officer of Magnum Hunter, commented, "We are pleased to once again announce an increase in our borrowing base as established by our Senior Bank Group. In addition, we now have sufficient liquidity to completely eliminate our non-conforming tranche. This action represents the initial step in our goal to simplify our balance sheet and reduce overall leverage through selected asset monetizations in 2013 while maintaining ample liquidity for our 2013 capital budget plan."