Strategic Alliance

Key points:

  • Experienced partner to drive Eagle Ford Shale assets
  • Vast technical knowledge and understanding of the shale and tight gas industry – adding value at every stage of the development lifecycle
  • Important for most efficient development of the Cooper Basin acreage

Magnum Hunter has a market capitalisation of approximately US$1.15 billion and is a highly reputable operator with strong expertise in certain of the major shale plays in North America. We view this expertise as a key ingredient to help unlock the emerging unconventional opportunity in the Cooper, Canning and Carnarvon Basins in Australia.

Following closing, the scheduled drilling program in the Eagle Ford will be managed and operated on behalf of New Standard by the same experienced technical team from Magnum Hunter that oversaw the company’s other assets in the Eagle Ford – assets that Magnum Hunter sold for US$401 million in April 2013.

As part of the transaction and share payment and following shareholder approval and closing, Magnum Hunter’s Executive Vice President of Exploration, H. C. Kip Ferguson III, is expected to join the New Standard Board, providing additional technical expertise. Magnum Hunter will also have the right to a further Board position in the future.

As a future major shareholder of New Standard, Magnum Hunter will have every incentive to operate the Eagle Ford and Cooper Basin assets as effectively and efficiently as possible, and we have every confidence in their ability.

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