Magnum Hunter Resources Corp. reported that the company has signed a letter of intent with a third party to create a joint venture for the purpose of building and operating a natural gas gathering system in West Virginia and Ohio.

Eureka Hunter Pipeline, LLC, a wholly owned subsidiary of Magnum Hunter Resources Corporation, and DCP Midstream Partners, LP (DPM), will each own fifty percent of the joint venture. The natural gas gathering system will connect the Eureka Hunter Pipeline to infrastructure owned by DCP Midstream Partners, LP.

Magnum Hunter Resources Corporation said that the total cost of the first phase of the natural gas gathering system is $35 million. The company will provide $12.5 million of these expenditures and DCP Midstream Partners, LP is responsible for the balance of the cost.

After phase one of the natural gas gathering system is completed, Magnum Hunter Resources Corporation and DCP Midstream Partners, LP will each provide fifty percent of future capital requirements.

Magnum Hunter Resources Corporation said that joint venture agreement is expected to close in the fourth quarter of 2010. The capacity of the proposed system in phase one will be 200 million cubic feet per day of natural gas per day.

For more information on the company, go to www.magnumhunterresources.com

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