What: Magnum Hunter Resources Corp (OTC:MHRCQ) investors have been on quite a wild ride over the past two trading days. The company's stock price surged more than 30% into Friday's close as news broke that it had received an extension from its banking group which gave it more time to raise capital. However, shares dropped more than 10% in Monday morning trading as reality begins to set in that an extension still doesn't satisfy the fact that the company doesn't have a lot of time to raise money.

So what: As a result of the extension the new timeline for raising capital has now been extended from June 19, 2015 to July 10, 2015. This extension gives Magnum Hunter Resources more time to meet a requirement from its banks to raise $65 million in net cash proceeds from certain specified transactions that the company agreed to under previous amendments of its credit facility.

So far the company has already raised $55.6 million, which includes a $33.6 million non-core acreage sale that closed just the other day. While that sale leaves Magnum Hunter Resources about $10 million short of its required capital, the company continues to work on other liquidity enhancing transactions to satisfy its bank obligations. In fact, the company is pursuing more than $200 million in transactions that will not only satisfy its bank obligations but bolster its overall liquidity.

Now what: Weak oil and gas prices have put Magnum Hunter Resources in a tough spot right now. After years of overspending its cash flow the company is struggling under the weight of its debt and is now being forced by its banks to address the situation. While the company is making progress on raising capital, it's still short of the required amount and despite the extensions it only has a few more weeks to raise more money, which the company has proven is easier said than done.