Magnum Hunter Resources Corp (NYSE:MHR) announces sale of operating interest


Dallas, Texas 09/17/2013 (Financialstrend) – On September 4, Magnum Hunter Resources Corp (NYSE:MHR) announced the sale of part of its interest in its subsidiary to Oasis Petroleum of North America which is a subsidiary of Oasis Petroleum, Inc. As per this agreement, Williston Hunter, Inc. Which is a wholly owned subsidiary of Magnum has agreed to sell part of Williston’s non operated working interest in its properties based in Bruke county, North Dakota.  The identified property includes 51495 acers of lease hold and account for nearly 120 Barrels of estimated oil per day production. In exchange of this sale, MHR is receiving $32.5 million in cash and this deal is expected to close on or before September 27.

Dividends issued in the form of warrants

In the past one month Magnum Hunter Resources Corp (NYSE:MHR) shares have sprinted over 32% upwards on the stock market. It is currently trading at $5.37 as of close of business on September 16.  This upward surge can be attributed to its August 26 announcement, in which the company issued dividends in the form of warrants to purchase shares of company’s common stock at $8.5 per share. Each share holder of the company common stock will get one warrant for every 10 shares of company’s common stock they hold. Each warrant will then allow the share holder to purchase one share of the company’s common stock at prefixed price of $8.5 per share.  These warrants will be open for sale from September 2014.

Magnum Hunter Resources is into oil and gas exploration and production. Its operations are spread across the states of West Virginia, Ohio, Texas, Kentucky and North Dakota. The company’s market valuation is $929 million and has a total of 171 million shares outstanding. At these valuations, the shares are trading nearer its 52 weeks high of $5.86 and are up 123% from its 52 weeks low price.