Industry Brief

Magnum Hunter Resources received net proceeds of $20.6 million from ONEOK Resources through the voluntary exercise of 100% of their public warrant shares (3,174,600 shares) at an exercise price of $6.50 per share. Through the exercise of these warrants, ONEOK Resources increased its current ownership interest from 32% to 38% of Magnum Hunter's outstanding securities. Additionally, Trust Company of the West as Investment Manager for General Mills, Inc. exercised 450,000 restricted common purchase warrants and Magnum received net proceeds of $2,362,500. "With the combined proceeds of this new equity capital totaling approximately $23 million, Magnum can significantly reduce its current outstandings under its senior bank credit line, increase our book equity, and at the same time expand our market capitalization by approximately $30 million," said Magnum CEO Gary C. Evans.

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