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Magnum Hunter Resources Spike 5% After Selling Shale Gas Properties For $401 Mln

By: MT Newswires
Posted: 4/3/2013 12:02:00 PM
Referenced Stocks: MHR;PVA

Magnum Hunter Resources ( MHR ) shares have spiked almost 5% after the company announced late Tuesday that it has agreed to sell its Eagle Ford shale oil and gas properties in Gonzales and Lavaca counties in Texas for $401 million.

The buyer was a unit of Penn Virginia Corp ( PVA ), which will pay 90% of the total in cash, with the option of paying for the remaining 10% either in cash or stock.

Magnum Hunter said it will use the proceeds to reduce debt and for general corporate purposes.

The shares are trading up $0.22 at $4.03, within a 52-week range of $3.29 to $6.45. Penn Virginia is down 0.3% at $3.89.