Magnum Hunter Resources Corp. has seen its borrowing base under its $350 million Senior Bank Facilities, which consist of a $250 million Senior Revolving Credit Facility and a $100 million Term Loan Facility, increased by $32.5 million from $167.5 million to $200 million.

The company, which recently pushed its Eagle Ford completions with longer laterals, greater frac stages, previously saw its senior bank credit facilities expand in September.

The 19% increase is due to organic growth of the company’s existing proved reserve base due to its drilling activities in its three unconventional resource plays. As previously announced, Magnum Hunter’s proved reserves increased by 19% to 37.0 million boe from June 30, 2011 to September 30, 2011.

As a result of the increased borrowing base and availability under its Credit Facilities and Eureka Hunter Credit Facility, the company has $115 million of existing liquidity under its credit facilities. The additional liquidity provides the company additional financial support to fund its remaining 2011 and upcoming 2012 capital programs.

The applicable interest rate margin of the Bank Facility will range from LIBOR plus 2.25% to LIBOR plus 3.25%, depending on the amount drawn at any given time on the Senior Revolving Credit Facility. The Senior Revolving Credit Facility is governed by a semi-annual borrowing base redetermination derived from the Company’s total proved crude oil and natural gas reserves.

Bank of Montreal serves as the “Administrative Agent” under the Senior Revolving Credit Facility, with Capital One, N.A. serving as the “Syndication Agent”, and Amegy Bank National Association, KeyBank National Association and UBS Securities LLC serving as “Documentation Agents”. BMO Capital Markets serves as “Lead Arranger” and “Sole Bookrunner”. Participating banks include Citibank, N.A., Credit Suisse AG, Deutsche Bank Trust Company Americas, SunTrust Bank, Goldman Sachs Bank USA, and Union Bank, N.A.     

Management Comments

Ronald D. Ormand, executive vice president and CFO of Magnum Hunter, commented, “We are very pleased to announce the increase of our borrowing base to $200 million. The revised borrowing base represents an increase of 19% over our June 30, 2011 borrowing base and is the fifth increase in our available credit with our banks this year. This increase is solely based on the success of the drilling programs in each of the company’s resource plays and not due to any acquisitions. In addition, the revised borrowing base increase provides additional liquidity to fund our budgeted capital programs in 2011 and 2012. As previously stated, the company is fully funded on its previously announced 2011 and 2012 capital budgets of $250 million and $200 million, respectively.”