Magnum Hunter Resources (MHR) Provides Marcellus Shale Development Activity Update

HOUSTON, TX — (Marketwire) — 12/23/10 — Magnum Hunter Resources Corporation (NYSE Amex: MHR) (NYSE Amex: MHR-PC) (“Magnum Hunter,” or the “Company”) is providing today a horizontal drilling update on its upstream operations and a status report on its midstream activities in the Marcellus Shale resource play located across approximately 50,000 net mineral acres located in northwestern West Virginia and southeastern Ohio.

Marcellus Shale Drilling Update

The Company’s first well drilled in the natural gas liquids rich leg of the Marcellus Shale of northwestern West Virginia is the Weese Hunter #1001, located in Tyler County. Alpha Hunter Drilling, a wholly owned subsidiary of Magnum Hunter, spud the Weese Hunter #1001 in late July 2010 and reached vertical total depth of approximately 6,510 feet in mid August 2010. A third party drilling rig commenced the horizontal leg in mid September 2010 and reached a horizontal length of approximately 4,028 feet. Total measured depth for the Weese Hunter #1001 is approximately 10,388 feet. A twelve stage frac job was successfully completed in December. The Weese Hunter #1001 well recently tested at an initial production rate (“IP”) of 7.0 MMcfe per day with flowing tubing pressures of 2350 psi on a 22/64 inch choke. The British Thermal Unit (“BTU”) content of the well was measured at approximately 1,225. The Weese Hunter #1001 began producing yesterday into the recently completed Eureka Hunter pipeline system. The currently estimated economic ultimate recovery (“EUR”) for the Weese Hunter #1001 is estimated by the Company’s in-house reservoir engineers to be approximately 4 Bcfe. Magnum Hunter’s wholly-owned subsidiary, Triad Hunter, LLC, is the operator of this well and owns a 100% working interest with a 84.3% net revenue interest.

Eureka Hunter Midstream Update

The first phase of six miles of the 20 inch Eureka Hunter Pipeline system was purged yesterday and turned to sales into Dominion Transmission’s TL-265 line. The second and third phases of this new system will commence construction in early 2011 as part of the Company’s capital budget program for next year. When operational, the recently ordered 200 MMCFD cryogenic natural gas processing plant will allow efficient processing of natural gas liquids from Company owned production as well as natural gas volumes gathered from third parties in this region.

Marcellus Shale 2010 Capex Update

The Company’s total capital expenditure budget allocation for drilling, completion, leasing, and pipeline construction operating activities for the Marcellus Shale in fiscal year 2010 remains at approximately $18 million, representing 32% of Magnum Hunter’s total fiscal year 2010 capital budget of an estimated $55 million. Through October 31, 2010, the Company has spent approximately $16.6 million of the $18 million budget allocation for this business segment.

Management Comments

James W. Denny, President of Triad Hunter, LLC., a wholly owned subsidiary of Magnum Hunter Resources Corporation, commented, “We are excited to have our first horizontal Marcellus well on production at rates that are at the high end of our original expectations. The downhole well log characteristics of our next two horizontal wells that have been drilled and are waiting on fracture stimulation, have indicated similar characteristics. We had a competitive edge by having detailed well information from thirty-one previously drilled vertical Marcellus wells by Triad Hunter prior to completing the acquisition of this Company earlier this year. Since none of our new Marcellus Shale horizontal drilling locations on our existing acreage position are currently booked as proved reserves, the anticipated reserve additions from these recent activities should add significant value in the future to our shareholders. We have currently budgeted a minimum of twelve wells for drilling in fiscal year 2011 for this region. Additionally, the high BTU nature of the production from this portion of the Marcellus Shale in our area of operations will allow us to maximize the liquids rich nature of this gas stream because of our midstream commitments in gathering, transmission, and processing.”

About Magnum Hunter Resources Corporation

Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas based independent exploration and production company engaged in the acquisition of exploratory leases and producing properties, secondary enhanced oil recovery projects, exploratory drilling, and production of oil and natural gas in the United States. The Company is presently active in three of the “big five” emerging shale plays in the United States.

For more information, please view our website at http://www.magnumhunterresources.com/

Forward-Looking Statements

This press release contains statements concerning Magnum Hunter Resources Corporation’s expectations, beliefs, plans, intentions, objectives, goals, strategies, future events or performance and underlying assumptions and other statements that are not historical facts. These statements and others contained in this presentation that are not historical are “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933, as amended (the “Securities Act”), Section 21E of the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and the Private Securities Litigation Reform Act of 1995 (the “Litigation Reform Act”). Actual results may differ materially from those expressed or implied by these statements. You can generally identify our forward-looking statements by the words “anticipate,” “believe,” “continue,” “could,” “estimate,” “expect,” “forecast,” “goal,” “intend,” “may,” “objective,” “plan,” “potential,” “predict,” “projection,” “should,” “will,” or other similar words. Such forward-looking statements relate to, among other things: (1) the Company’s proposed exploration and drilling operations on its various properties, (2) the expected production and revenue from its various properties, (3) the Company’s proposed redirection as an operator of certain properties and (4) estimates regarding the reserve potential of its various properties. These statements are qualified by important factors that could cause the Company’s actual results to differ materially from those reflected by the forward-looking statements. Such factors include but are not limited to: (1) the Company’s ability to finance the continued exploration, drilling and operation of its various properties, (2) positive confirmation of the reserves, production and operating expenses associated with its various properties, (3) the general risks associated with oil and gas exploration, development and operations, including those risks and factors described from time to time in the Company’s reports and registration statements filed with the Securities and Exchange Commission, including but not limited to the Company’s Annual Report on Form 10-K for the period ended December 31, 2009 filed on March 31, 2010, and the Company’s Quarterly Reports on Form 10-Q for the quarters ended March 31, 2010, June 30, 2010 and September 30, 2010 and, filed on May 17, 2010, August 12,2010 and November 12, 2010, respectively. Magnum Hunter Resources Corporation cautions readers not to place undue reliance on any forward-looking statements. Magnum Hunter Resources Corporation does not undertake, and specifically disclaims any obligation, to update or revise such statements to reflect new circumstances or unanticipated events as they occur.

Magnum Hunter Contact:
M. Bradley Davis
Senior Vice President of Capital Markets
bdavis@magnumhunterresources.com
(832) 203-4545