Magnum Hunter Resources Corporation (MHR) reported that the company has entered a joint development and operating agreement with Stone Energy Corporation (SGY) in the Marcellus Shale. The agreement covers acreage currently owned by both companies and located in Wetzel County, West Virginia.
Magnum Hunter and Stone Energy agreed to drill nineteen horizontal wells over the next two years on a 1,925 acre leasehold. The two companies have drilled and completed two horizontal wells into the Marcellus Shale on the acreage and plan to drill eleven additional horizontal wells in 2012 at a cost of $47 million.
Stone Energy will be the operator of the leasehold and production from the wells will be delivered to the Eureka Hunter Pipeline System, which is owned by Magnum Hunter.