2009-09-24-2009-08-27

To buy drilling rights on farm-out acreage in Todd, Muhlenberg & Christian counties, KY.

Gary Evans' Magnum Hunter Resources Corp., (Amex: MHR) fka Petro Resources Corp., plans to acquire Houston-based Sharon Resources Inc., a subsidiary of Canadian E&P Sharon Energy Ltd., Calgary, (Toronto Venture: SHY) with positions in the Eagle Ford shale, Austin chalk, and Northwest Speaks formations in Texas for US$2.35 million in stock. The deal includes three Sharon team members. Magnum Hunter will pay 2,294,474 shares, representing approximately 5.6% of its 40.8 million shares outstanding as of Aug. 1. No debt or any other liabilities will be assumed by Magnum Hunter. Sharon Resources holds approximately 6,400 acres in the Eagle Ford shale resource play. Based on the analysis completed by Magnum Hunter as of June 30, Sharon Resources had estimated total proved reserves of approximately 2.9 billion cubic feet equivalent (30% proved developed producing; 85% gas) with net production of approximately 288,000 cubic feet equivalent per day (95% gas). Sharon Resources operates more than 65% of its proved reserve base. Magnum Hunter chairman Gary C. Evans says, "Kip Ferguson and his team of successful exploration and evaluation professionals brings to Magnum Hunter three seasoned industry professionals with specific expertise that previously did not exist in our organization. Sharon's existing inventory of attractive drilling opportunities, expertise in advanced drilling and completion technologies (particularly in resource plays), and expansion of our operational and technical staff will be immediately accretive to our existing organization. We have been most impressed by the high quality of Sharon's existing projects even in this low commodity-price environment. In particular, their 6,400-acre position in the Eagle Ford shale resource play is something we are very excited about and intend to pursue immediately." Sharon Resources president H.C. "Kip" Ferguson III says, "Our team of three highly seasoned exploration and evaluation oriented professionals are very excited to be joining forces with the new management team at Magnum Hunter Resources. With the contribution of our existing inventory and ready-to-drill portfolio of lower risk and repeatable projects, we believe our company is positioned with one of the better situated acreage holdings in the emerging Eagle Ford shale resource play." In 2005, Evans sold the original Magnum Hunter Resources to Cimarex Energy Inc. and later formed renewable energy company GreenHunter Energy Inc. He is also chairman and CEO of privately held oil and gas operating company Gruy Petroleum Management LLC Inc. He joined Petro Resources in May and subsequently changed the name to Magnum Hunter. Closing was expected by the end of September.