M&A

29 October, 2009

UPDATE 1-Magnum Hunter to buy Triad Energy assets for $81 mln

* To buy Triad assets out of Chapter 11 bankruptcy

* Says deal to close in late 2009 or early 2010

* Says Triad creditors fully support deal

Oct 29 (Reuters) - Independent oil exploration and production company Magnum Hunter Resources Corp (MHR.A) said it agreed to buy assets of privately held Triad Energy Corp out of Chapter 11 bankruptcy for $81 million.

Under the deal, Magnum will buy substantially all of Triad's oil and gas exploration and production operating assets and ownership interests in certain oilfield service related drilling, pipeline and salt water disposal assets.

Magnum said the deal will be effective once the bankruptcy court approves Triad's reorganization plan.

Magnum added that Triad's principal secured and unsecured creditors had agreed to fully support the deal, which is expected to close in late 2009 or early 2010.

Shares of Houston-based Magnum closed at $1.91 Wednesday on the American Stock Exchange. (Reporting by Santosh Nadgir in Bangalore; Editing by Himani Sarkar)

Source: http://www.reuters.com