Magnum Hunter Resources Discloses 2013 Drilling Plans to Begin Developing Its Substantial Utica Leasehold Position in Ohio
HOUSTON, TX -- (Marketwire) -- 01/22/13 -- Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) (the "Company") announced today that it intends to drill a minimum of four (4) Utica test wells in Ohio this year. If results are similar to those experienced by offset Operators in the area, then further development on the leasehold position is planned later in the year.
The Company through its wholly-owned subsidiary, Triad Hunter, LLC ("Triad Hunter"), is currently building its first Utica Pad in Washington County, Ohio. The Farley Pad is designed for potentially drilling four (4) horizontal wells to the Utica formation. The first well will be a vertical pilot for extensive logging and coring, then plans are to plug back and drill an approximately 6,000 foot lateral in the Point Pleasant portion of the Utica. The well will then be fracture stimulated and tested. Plans are to spud this first well in late February or early March. Triad Hunter has mineral rights on about 107,000 gross acres (81,000 net acres) of Utica potential, largely held by production. About 41,000 gross acres (26,514 net acres) are deemed to be in the wet gas window.
Three (3) additional Utica/Point Pleasant wells are planned in conjunction with the previously announced Joint Operating Agreement with Eclipse Resources I, LP, to form three drilling Units in Monroe County, Ohio. Production from these Utica wells, along with the twelve (12) "Magnum Rich" Marcellus wells will be gathered and delivered to the MarkWest processing facility at Mobley, West Virginia. This will be accomplished by laying three separate pipelines in the same right-of-way. One for wet gas, one for dry gas, and one for produced liquids to be separated at a central facility.
Anticipating favorable results, the Company has already commissioned engineering drawings and Unit preparation on two (2) additional Utica Pads. The Crooked Tree Pad located in Noble County, Ohio is being designed around the potential for ten horizontal wells, five updip, and five downdip. The Woodchopper Pad located in Washington County, Ohio is being designed for four Point Pleasant horizontal wells.
Magnum Hunter Management Comments
Mr. James W. Denny, III, President of Triad Hunter, commented, "We are very excited to begin accelerating our testing program in the Utica formation located in Ohio. Development of this exciting and highly productive unconventional play could have significant impact to our Company. As nearby offset operators results have validated our geologic interpretation, we are confident that our leasehold position will yield anticipated results. Additionally, we have recently drilled and cased two new Marcellus wells on our Ormet acreage located in Monroe County, Ohio adjacent to leases where Utica potential exists. We are planning to complete these new liquids rich Marcellus wells this summer when Eureka Hunter, our midstream division, has completed the necessary infrastructure."
About Magnum Hunter Resources Corporation
Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas-based independent exploration and production company engaged in the acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in the states of West Virginia, Kentucky, Ohio, Texas and North Dakota, and Saskatchewan, Canada. The Company is presently active in five of the most prolific unconventional shale resource plays in North America, namely the Marcellus Shale, Utica Shale, Eagle Ford Shale, Pearsall Shale and Williston Basin/Bakken Shale.
For more information about Magnum Hunter, please visit www.magnumhunterresources.com.
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Assistant Vice President of Finance and Capital Markets