Magnum Hunter Resources (MHR) announced the acquisition of acreage in the Appalachian Basin that is prospective for the Marcellus Shale.
Magnum Hunter Resources will purchase 11,378 gross acres, or 8,652 net acres located in Wetzel and Lewis Counties, West Virginia. The company will pay $39.75 million in a 50/50 combination of stock and cash to PostRock Energy Corporation (PSTR) for the Marcellus Shale acreage.
Magnum Hunter Resources said that the assets will be operated by Triad Hunter, LLC, the company’s wholly owned subsidiary. The assets had total proved reserves of approximately 24.3 Bcfe and net production of 905 Mcfe per day as of 11/01/2010.
Magnum Hunter Resources estimates that the acreage holds probable reserves of 165.4 Bcfe from the Marcellus Shale.