Total sales of non-core properties to-date, inclusive of this divestiture of South Louisiana properties, now approximates $115 million. Predominately all of the properties sold were acquired in conjunction with the March 2002 merger with Prize Energy Co. All of the net proceeds received from the various divestitures over the past year have been used to further reduce Magnum Hunter's overall indebtedness.
Commenting on the completion of this most recent sale of non-core assets, Mr. Richard R. Frazier, Executive Vice President and Chief Operating Officer of Magnum Hunter stated, "We have been very pleased with the prices received for all of the non-core property sales completed by Magnum Hunter. The sale of this latest group of South Louisiana properties allows Magnum Hunter to exit this region and further allows our Gulf Coast technical staff to concentrate on our core fields located in South Texas. The majority of the value of the South Louisiana properties divested were in non-producing categories, requiring additional risk capital to fully exploit. By divesting out of South Louisiana, we can further reduce our indebtedness with minimal effect on the Company's current daily production."
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