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Magnum Hunter Resources Corp. (MHR) Reports Increase in Proved Reserves at Mid Year

Magnum Hunter Resources Corp. reported a large increase in the company’s estimated proved reserves of oil and gas. The estimate is based on an updated assessment of the company’s oil and gas properties conducted midyear.

Magnum Hunter Resources Corporation reported proved reserves of 11.8 million barrels of oil equivalent (NYSE:BOE) at 6/30/2010, up from 6.2 million BOE at the end of 2009. Fifty three percent of the reserves were proved developed producing (NASDAQ:PDP) assets.

The company said that the proved reserves were approximately 69% crude oil and natural gas liquids, and 31% natural gas. The percentage of crude oil and natural gas liquids was slightly lower than at the end of 2009, when 74% of the company’s reserve base was composed of crude oil and natural gas liquids.

Cawley, Gillespie & Associates, Inc. and DeGolyer and McNaughton, two third party engineering consulting firms, performed the updated reserve assessment.

Magnum Hunter Resources Corporation reported that the proved reserves had a PV-10 value of $173 million at 6/30/2010, up from $65.6 million six months earlier. The Securities and Exchange Commission mandates the PV-10 valuation.

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