Magnum announced that its wholly-owned subsidiary, Triad Hunter, has executed a definitive agreement and closed on the acquisition of oil and gas properties and leasehold mineral interests located in Wetzel County, West Virginia (the "Marcellus Assets") for a cash purchase price of $20.0 Million. Magnum Hunter funded the purchase price consideration with existing working capital. Aggregate consideration is subject to certain post closing adjustments based on title, indemnities and other specific matters. The seller is a privately-held independent E&P company.
Mr. Gary C. Evans, Chairman and Chief Executive Officer of Magnum Hunter, commented, "Today's acquisition announcement represents another 'bolt on' acquisition in one of our Company's three liquids rich unconventional resource play regions. We consider the Marcellus Assets acquired to be accretive to shareholders and will further expand our footprint in West Virginia. Triad Hunter previously acquired the 50% operated interest associated with these properties in December 2010. Beginning with our entry into the Appalachia with our first acquisition (Triad Hunter) in February 2010, the Company's overall presence in the Appalachian Basin has been steadily increasing. We plan to continue to be one of the most active drillers in northwestern West Virginia. Furthermore, we have made the financial commitments in the midstream area of gathering and processing to realize the greatest value possible from each molecule of natural gas produced. The Marcellus Assets acquired with this transaction are within close proximity to our Eureka Hunter pipeline system and planned expansions to this system currently in progress."
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