Magnum Hunter Resources Inc. has sold some noncore assets from its merger with Prize Energy Inc. to a new partnership with GE Capital Corp. for approximately $50 million. GE Capital has 95% initial ownership of the partnership; Magnum Hunter is general partner and has a 5% stake. Magnum Hunter's ownership will increase to 37.63% when GE Capital recovers its investment and receives a predetermined rate of return-in about 10 years. The deal is Magnum Hunter's second with GE Capital in the last several years, according to Gary C. Evans, Magnum Hunter chairman, president and chief executive officer. Approximately 1,750 wells are in the newest deal. Gruy Petroleum Management Co., a subsidiary of Magnum Hunter, is operator of two-thirds of the assets. Proved reserves are 51% oil. "Given the relative strength of the forward commodity price curves to historical prices, we believe the timing of this divestiture of noncore assets takes advantage of the favorable current market conditions," Evans says. "There is a real disconnect in the market today with respect to the value of hard assets in the private energy sector versus public evaluations. The net proceeds to be received at closing will go to further reduce Magnum Hunter's existing commercial bank indebtedness as we seek to achieve our goal of a 50% debt-to-equity ratio."