UPDATE 1-Magnum Hunter says Williston Basin deal falls through

Fri Aug 19, 2011 5:08pm EDT

Related Topics

* Says deal did not close on Thursday

* Says deal did not close due to unresolved issues between the parties

* Files new lawsuit against Eagle

* Also seeking monetary damages

* Two pending lawsuits between the cos expected to continue (Follows alerts)

Aug 19 (Reuters) - Magnum Hunter Resources Corp said a proposed deal under which its unit was to buy oil and gas properties in the Williston Basin in North Dakota from privately held Eagle Operating Inc fell through and it filed a lawsuit against Eagle.

Under the deal, Magnum Hunter was to acquire a 48 percent working ownership interest in the Williston Basin properties owned by Eagle for $57 million.

In a statement on Friday, Magnum said the acquisition, which was to close on Thursday, did not go through due to "unresolved issues between the parties resulting from what Magnum Hunter considers to be Eagle's intentional and bad faith breach of its obligations under the purchase and sale agreement."

The acquisition would also have resulted in the settlement of two pending lawsuits between the company and Eagle.

Under the lawsuit filed on Friday, Magnum Hunter is seeking a court order asking Eagle to complete the sale.

The oil and gas company is also seeking monetary damages.

Shares of the Houston, Texas-based company closed at $4.28 on Friday on the New York Stock Exchange. (Reporting by Swetha Gopinath in Bangalore; Editing by Sriraj Kalluvila)

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