Marcellus Shale

Magnum Hunter Resources Enters Marcellus Shale Joint Venture

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.

Range Resources Hits Marcellus Shale Production Goal

Range Resources (RRC) announced that the company is producing 400 million cubic feet of natural gas equivalents per day from the Marcellus Shale.  This is the production level that the company established for the end of 2011. Range Resources exited 2010 producing 200 million cubic feet of natural gas equivalents per day from the Marcellus Shale.

2011 Highlights

• Increased firm transportation capacity and sales arrangements to 650 million cubic feet per day.
• Increased natural gas processing capacity in southwestern Pennsylvania to 435 million cubic feet per day.
• Executed the company’s first ethane extraction and sales contract.