Magnum Hunter Resources, an exploration and production company, has signed a purchase and sale agreement with a subsidiary of Approach Resources for the sale to Approach of Magnum Hunter's 10% non-operated working interest in the Cinco Terry property located in Crockett County, Texas.

Total cash consideration of the sale to Approach is $21.5m, subject to customary adjustments.

The sale is deemed effective as of 1 October 2010 and final closing of the sale occurred on 29 October 2010.

As of 30 June 2010, Magnum Hunter’s total proved reserves associated with Cinco Terry were 2.4mmboe.

The company’s net daily production level attributable to this 10% non-operated working interest located in west Texas is approximately 470boe per day.

Approach is the operator of the Cinco Terry property, which includes approximately 5,033 net acres.