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North Dakota (Non-Operated)

Fourth quarter activities in Divide and Burke Counties, North Dakota included drilling 24 gross (5.2 net) wells and completing and bringing to production 24 gross (5.0 net) wells. At quarter end, there were 15 gross (2.9 net) wells drilled awaiting completion operations.

Highlights for North Dakota include:

•Burton Olson 21-16-162-98 - This well was drilled and cased to a measured depth of 18,217 feet (horizontal lateral length of 9,443 feet), fraced with 36 stages and placed on production December 6, 2012. The 24 hour flowing initial production rate was 1,807 Boepd. Magnum owns a 20.72% working interest.

•Burton Olson 28-33-162-98 - This well was drilled and cased to a measured depth of 18,842 feet (horizontal lateral length of 10,097 feet), fraced with 36 stages and placed on production December 14, 2012. The 24 hour flowing initial production rate was 1,272 Boepd. Magnum owns a 21.05% working interest.

•Border Farms 3130-2TFH - This well was drilled and cased this well to a measured depth of 14,111 feet (horizontal lateral length of 5,919 feet), fraced with 40 stages and placed on production November 19, 2012. The 24 hour flowing initial production rate was 975 Boepd. Magnum owns a 28.35% working interest.

•Border Farms 3130-1H - This well was drilled and cased this well to a measured depth of 14,300 feet (horizontal lateral length of 6,025 feet), fraced with 40 stages and placed on production December 1, 2012. The 24 hour flowing initial production rate was 972 Boepd. Magnum owns a 28.35% working interest.



The ONEOK gas conservation and gathering project under construction is currently estimated to begin initial operations in March 2013. ONEOK is currently building out the compressor station, the 12" High Pressure Discharge line and the northern most East/West gathering pipeline.

Our initial two Middle Bakken Exploration test wells yielded positive results, and five additional laterals are currently being fraced. Significant 2013 drilling capital has been allocated to further delineate this resource emerging over the Ambrose Block in Divide County.

Operational initiatives at Williston Hunter's Tableland Consolidated Battery Facility have increased overall fluid handling capabilities, and ongoing field electrification will further reduce downtime and operating costs in the future.

Mr. Glenn Dawson, President of Williston Hunter, commented, "In the fourth quarter of 2012, Williston Hunter concluded the Central Divide Acquisition of approximately 20,000 net mineral acres and evolved as an Operator in Divide County, North Dakota. The first well targeting Three Forks Sanish has now spudded and we plan to utilize one mile lateral technology. Drilling operations for Three Forks Sanish continued in harvest mode on low risk high return eco-pad infill wells with EUR potential up to 500 MBOE per well. Fourth quarter drilling realized some of the highest IP 24 hour flowback results experienced to-date in our region."

Appalachia

During the fourth quarter 6 gross (4.5 net) Marcellus wells were brought to production. The Company expects to place on production 8 gross 4 net wells in West Virginia during the first quarter of 2013. The Company has successfully fracture stimulated 4 gross (4 net) wells on its Spencer Pad in the "Magnum Rich" Marcellus Shale located in Tyler county, West Virginia. All production from these wells is presently on line.