Magnum Hunter Resources Reports Proved, Probable and Possible Reserves (3P) and Contingent Resources of 848 MMBoe

HOUSTON, TX--(Marketwired - August 21, 2013) - Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) (the "Company" or "Magnum Hunter") announced today that its combined estimated proved, probable and possible reserves ("3P Reserves") were 119.3 MMBoe and its estimated contingent resources were an additional 728.9 MMBoe as of June 30, 2013. Magnum Hunter's 3P Reserves at June 30, 2013 were prepared by a third-party engineering consultant, Cawley Gillespie & Associates, Inc. ("Cawley"), and include the Marcellus and Williston Basin/Bakken/Sanish Shale reserves, however, no Utica Shale reserves were included. The contingent resource estimate is an internal analysis prepared by Magnum Hunter that includes the Company's Utica Shale potential on its vast lease acreage holdings.

The Williston Basin/Bakken/Sanish Shale and Marcellus Shale probable and possible reserves were estimated at 49.8 MMBoe and 11.7 MMBoe, respectively, as of June 30, 2013. The contingent resources based on Magnum Hunter's internal analysis as of June 30, 2013 were comprised of 44.4 MMBoe in the Williston Basin/Bakken/Sanish Shale, 142.9 MMBoe in the Marcellus Shale, 496.2 MMBoe in the Utica Shale, and 45.4 MMBoe in the Devonian Shale.

The table below summarizes Magnum Hunter's estimated 3P Reserves using SEC pricing and estimated internally generated contingent resources, broken out by operating area:

¹ The 3P Reserves and contingent resources have not been adjusted to reflect any risks associated with achieving commerciality of production.

Proved Reserves Overview

As previously reported, Magnum Hunter's total proved reserves, excluding the Eagle Ford Shale properties divestment which occurred in April 2013, decreased by 6% to 57.8 MMBoe (51% crude oil and NGLs; 61% proved developed producing) at June 30, 2013 as compared to 61.6 MMBoe (57% crude oil and NGLs; 56% proved developed producing) at December 31, 2012^a. This decline was primarily due to higher lease operating expenses ("LOE") in the Williston Basin which moved certain proved undeveloped reserves into the probable category. Proved developed reserves increased by 3% from year-end 2012 to 35.4 MMBoe as of June 30, 2013 as a result of the Company's continued execution of its development drilling program. Aggregate proved undeveloped reserves decreased slightly primarily due to higher LOE costs related to rental equipment, manpower and field fuel use. The Company anticipates LOE costs in the Williston Basin to decrease over time due to increased efficiencies at the field level, including electrification of certain fields.

As of June 30, 2013, no proved reserves had been booked in Magnum Hunter's significant leasehold acreage position owned in the Utica Shale in the Appalachian Basin (80,000+ net acres) where the Company has initiated an active drilling program. The Company also expects a significant increase in reserves during the second half of the year due to "pad" related drilling in Appalachia for both the Utica and Marcellus Shales. Given the Company's successful drilling results to-date, as well as those of other operators in the vicinity of its leasehold acreage, Magnum Hunter believes that a substantial portion of its Utica Shale acreage will be added to proved reserves over time as more wells are drilled and delineated in this region. The Appalachian Basin accounted for 65% of Magnum Hunter's proved reserve volumes at June 30, 2013, the Williston Basin accounted for 34% and other legacy assets, including our remaining assets in South Texas, accounted for the remaining 1%. At mid-year 2013, 50% of the Company's proved reserves by volume were natural gas, 38% were crude oil and 12% were NGLs.

The present value of estimated future cash flows discounted at an annual rate of 10% ("PV-10") of the Company's proved reserves at June 30, 2013 decreased to $666.4 million from $753.4 million at December 31, 2012, excluding the Eagle Ford Shale divestment (See Non-GAAP Financial Measures and Reconciliations below)^a. Under the Securities and Exchange Commission ("SEC") guidelines, the commodity prices used in the June 30, 2013 and December 31, 2012 PV-10 estimates were based on the 12-month un-weighted arithmetic average of the first day of the month prices for the period July 1, 2012 through June 1, 2013 and for the period December 30, 2011 through November 30, 2012, respectively, adjusted by lease for transportation fees and regional price differentials. For crude oil and NGL volumes, the average West Texas Intermediate posted price of $91.60 per barrel was used to calculate PV-10 at June 30, 2013, which was down 3.3% from the average price of $94.71 per barrel used to calculate PV-10 at December 31, 2012. For natural gas volumes, the average Henry Hub spot price of $3.46 per million British thermal units ("MMBTU") was used to calculate PV-10 at June 30, 2013, which was up 26% from the average price of $2.75 per MMBTU used to calculate PV-10 at December 31, 2012. All prices were held constant throughout the estimated economic life of the properties.

^a The December 31, 2012 and June 30, 2013 proved reserves and related PV-10 value exclude the proved reserves and related PV-10 value associated with the Eagle Ford Hunter, Inc. properties sale, which closed on April 24, 2013.

Non-GAAP Financial Measures and Reconciliations

This release contains certain financial measures that are non-GAAP measures. We have provided reconciliations within this release of the non-GAAP financial measures to the most directly comparable GAAP financial measures. These non-GAAP financial measures should be considered in addition to, but not as a substitute for, measures for financial performance prepared in accordance with GAAP that are presented in this release.

PV-10 is the present value of the estimated future cash flows from estimated total proved reserves after deducting estimated production and ad valorem taxes, future capital costs and operating expenses, but before deducting any estimates of future income taxes. The estimated future cash flows are discounted at an annual rate of 10% to determine their "present value." We believe PV-10 to be an important measure for evaluating the relative significance of our oil and gas properties and that the presentation of the non-GAAP financial measure of PV-10 provides useful information to investors because it is widely used by professional analysts and investors in evaluating oil and gas companies. Because there are many unique factors that can impact an individual company when estimating the amount of future income taxes to be paid, we believe the use of a pre-tax measure is valuable for evaluating the Company. We believe that PV-10 is a financial measure routinely used and calculated similarly by other companies in the oil and gas industry. However, PV-10 should not be considered as an alternative to the standardized measure as computed under GAAP.

The standardized measure of discounted future net cash flows relating to Magnum Hunter's total proved oil and gas reserves is as follows:

¹ The PV-10 value and the standardized measure shown in the table above are the same primarily because the combination of the Company's intangible drilling capital spending in 2013 and the Company's projected loss from continuing operations on a tax basis for 2013 are expected to be approximately equal to the tax gain from the sale of the Eagle Ford Shale properties sold to Penn Virginia Corporation in April 2013; therefore, the Company expects to recognize only minimal tax expense in 2013.

Certain Definitions

The SEC requires oil and natural gas companies, in filings made with the SEC, to disclose proved reserves, which are those quantities of oil and natural gas that by analysis of geoscience and engineering data can be estimated with reasonable certainty to be economically producible from a given date forward, from known reservoirs, and under existing economic conditions, operating methods, and government regulations.

Probable reserves are those additional reserves that are less certain to be recovered than proved reserves but which, together with proved reserves, are as likely as not to be recovered. When deterministic methods are used, it is as likely as not that actual remaining quantities recovered will exceed the sum of estimated proved plus probable reserves. When probabilistic methods are used, there should be at least a 50% probability that the actual quantities recovered will equal or exceed the proved plus probable reserves estimates. Probable reserves may be assigned to areas of a reservoir adjacent to proved reserves where data control or interpretations of available data are less certain, even if the interpreted reservoir continuity of structure or productivity does not meet the reasonable certainty criterion. Probable reserves may be assigned to areas that are structurally higher than the proved area if these areas are in communication with the proved reservoir. Probable reserves estimates also include potential incremental quantities associated with a greater percentage recovery of the hydrocarbons in place than assumed for proved reserves.

Possible reserves are those additional reserves that are less certain to be recovered than probable reserves. When deterministic methods are used, the total quantities ultimately recovered from a project have a low probability of exceeding proved plus probable plus possible reserves. When probabilistic methods are used, there should be at least a 10% probability that the total quantities ultimately recovered will equal or exceed the proved plus probable plus possible reserves estimates. Possible reserves may be assigned to areas of a reservoir adjacent to probable reserves where data control and interpretations of available data are progressively less certain. Frequently, this will be in areas where geoscience and engineering data are unable to define clearly the area and vertical limits of commercial production from the reservoir by a defined project. Possible reserves also include incremental quantities associated with a greater percentage recovery of the hydrocarbons in place than the recovery quantities assumed for probable reserves. Possible reserves may be assigned where geoscience and engineering data identify directly adjacent portions of a reservoir within the same accumulation that may be separated from proved areas by faults with displacement less than formation thickness or other geological discontinuities and that have not been penetrated by a wellbore, and the Company believes that such adjacent portions are in communication with the known (proved) reservoir. Possible reserves may be assigned to areas that are structurally higher or lower than the proved area if these areas are in communication with the proved reservoir. Where direct observation has defined a highest known oil ("HKO") elevation and the potential exists for an associated gas cap, proved oil reserves should be assigned in the structurally higher portions of the reservoir above the HKO only if the higher contact can be established with reasonable certainty through reliable technology. Portions of the reservoir that do not meet this reasonable certainty criterion may be assigned as probable and possible oil or gas based on reservoir fluid properties and pressure gradient interpretations.

In this press release, the Company uses the term "contingent resources" to describe quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. This is a broader category of potentially recoverable volumes than proved, probable or possible reserves. Contingent resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. Contingent resources may be further categorized in accordance with the level of certainty associated with the estimates and may be sub-classified based on project maturity and/or characterized by their economic status. Estimates of contingent resources are by their nature more speculative than estimates of proved, probable and possible reserves and accordingly are subject to substantially greater risk of actually being realized by the Company. The Company believes its estimates of contingent resources and potential drilling locations are reasonable, but such estimates have not been reviewed by independent engineers. Estimates of contingent resources may change significantly as development provides additional data, and actual quantities that are ultimately recovered may differ substantially from prior estimates.

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, development and production of crude oil, natural gas and natural gas liquids, primarily in the states of West Virginia, Ohio, North Dakota, Kentucky, Texas and Saskatchewan, Canada. The Company is presently active in three of the most prolific unconventional shale resource plays in North America, namely the Marcellus Shale, Utica Shale and Williston Basin/Bakken Shale.

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

Forward-Looking Statements

The statements and information contained in this press release that are not statements of historical fact, including any estimates and assumptions contained herein, are "forward looking statements" as defined in Section 27A of the Securities Act of 1933, as amended, referred to as the Securities Act, and Section 21E of the Securities Exchange Act of 1934, as amended, referred to as the Exchange Act. These forward-looking statements include, among others, statements, estimates and assumptions relating to our business and growth strategies, our oil and gas reserve estimates, our ability to successfully and economically explore for and develop oil and gas resources, our exploration and development prospects, future inventories, projects and programs, expectations relating to availability and costs of drilling rigs and field services, anticipated trends in our business or industry, our future results of operations, our liquidity and ability to finance our exploration and development activities and our midstream activities, market conditions in the oil and gas industry and the impact of environmental and other governmental regulation. In addition, with respect to any pending transactions described herein, forward-looking statements include, but are not limited to, statements regarding the expected timing of the completion of proposed transactions; the ability to complete proposed transactions considering various closing conditions; the benefits of any such transactions and their impact on the Company's business; and any statements of assumptions underlying any of the foregoing. In addition, if and when any proposed transaction is consummated, there will be risks and uncertainties related to the Company's ability to successfully integrate the operations and employees of the Company and the acquired business. Forward-looking statements generally can be identified by the use of forward-looking terminology such as "may," "will," "could," "should," "expect," "intend," "estimate," "anticipate," "believe," "project," "pursue," "plan" or "continue" or the negative thereof or variations thereon or similar terminology.

These forward-looking statements are subject to numerous assumptions, risks, and uncertainties. Factors that may cause our actual results, performance, or achievements to be materially different from those anticipated in forward-looking statements include, among others, the following: adverse economic conditions in the United States, Canada and globally; difficult and adverse conditions in the domestic and global capital and credit markets; changes in domestic and global demand for oil and natural gas; volatility in the prices we receive for our oil, natural gas and natural gas liquids; the effects of government regulation, permitting and other legal requirements; future developments with respect to the quality of our properties, including, among other things, the existence of reserves in economic quantities; uncertainties about the estimates of our oil and natural gas reserves; our ability to increase our production and therefore our oil and natural gas income through exploration and development; our ability to successfully apply horizontal drilling techniques; the effects of increased federal and state regulation, including regulation of the environmental aspects, of hydraulic fracturing; the number of well locations to be drilled, the cost to drill and the time frame within which they will be drilled; drilling and operating risks; the availability of equipment, such as drilling rigs and transportation pipelines; changes in our drilling plans and related budgets; regulatory, environmental and land management issues, and demand for gas gathering services, relating to our midstream operations; and the adequacy of our capital resources and liquidity including, but not limited to, access to additional borrowing capacity.

These factors are in addition to the risks described in the "Risk Factors" and "Management's Discussion and Analysis of Financial Condition and Results of Operations" sections of the Company's 2012 annual report on Form 10-K, and subsequent Form 10-Qs, filed with the Securities and Exchange Commission, which we refer to as the SEC. Most of these factors are difficult to anticipate and beyond our control. Because forward-looking statements are subject to risks and uncertainties, actual results may differ materially from those expressed or implied by such statements. You are cautioned not to place undue reliance on forward-looking statements contained herein, which speak only as of the date of this document. Other unknown or unpredictable factors may cause actual results to differ materially from those projected by the forward-looking statements. Unless otherwise required by law, we undertake no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. We urge readers to review and consider disclosures we make in our reports that discuss factors germane to our business. See in particular our reports on Forms 10-K, 10-Q and 8-K subsequently filed from time to time with the SEC. All forward-looking statements attributable to us are expressly qualified in their entirety by these cautionary statements.