Magnum Hunter Resources Corp. (NYSE: MHR) has increased its borrowing base, under its US $750 million senior bank facility, from US $306.25 million to US $350 million.

According to the release, the 14.3% increase in Magnum Hunter's borrowing base is entirely due to organic growth of the company's existing proved reserve base due to the successful drilling activities in its three unconventional resource plays.

Effective with this increase in the conforming borrowing base, the previous non-conforming borrowing base tranche under the senior credit facility of US $31.25 has been eliminated. The non-conforming tranche was added in 4Q 2012 to support the company's 2012 capital expenditures primarily related to the drilling program. However, as a result of issuances of senior notes and preferred stock and this new conforming borrowing base increase, the Company no longer has a need for the additional capital.

As a result of the new borrowing base and availability under the company's senior revolving credit facility, as of March 1, the company had US $115 million of total liquidity including cash and borrowing base availability under its new borrowing base. In addition, the company has raised over US $10 million of net proceeds year-to-date from the issuance of our series D and series E preferred stock.

The company anticipates additional liquidity to be generated from additional borrowing base increases and possible additional issuances of preferred stock later this year. In addition, the company presently anticipates further liquidity to be generated from its monetization of selected assets planned for 2013, according to the release.

The company presently has the ability to fully fund its 2013 upstream capital budget program of US $300 million, and these additional sources will provide further improved liquidity.

Bank of Montreal is administrative agent under the senior credit facility, with Capital One N.A. as syndication agent. Other banks in the senior credit facility include ABN AMRO, Amegy Bank National Association, Bank of America, Citibank N.A., Credit Suisse AG, Deutsche Bank Trust Co. Americas, KeyBank National Association, Royal Bank of Canada, SunTrust Bank, Goldman Sachs Bank USA, and UBS.

Magnum Hunter is a Houston- based independent E&P company engaged in the acquisition, development and production of crude oil, natural gas and NGLs.