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.

Magnum Hunter Resources To Spend $70 Million In Marcellus Shale In 2012

Magnum Hunter Resources (MHR) announced a $200 million capital budget for 2012, with $150 million dedicated to the company’s upstream segment.

Magnum Hunter Resources has allocated $70 million to the exploration and development of the Marcellus Shale and other formations in the Appalachian Basin. This level of expenditure represents 27.5% of the total capital budget for the year.  The company is also evaluating other plays on its leasehold including the Utica, Huron and Weir formations.

Magnum Hunter Resources estimates that this level of capital spending will generate an annual production growth rate between 80% and 90% in 2012. 

Magnum Hunter Resources Adds To Marcellus Shale Position

Magnum Hunter Resources (MHR) reported that the company has closed on the acquisition of properties in West Virginia that are prospective for the Marcellus Shale.

Magnum Hunter Resources paid $20 million for a 2,225 net acre position in Wetzel County, with twenty identified horizontal drilling locations on the property.

Magnum Hunter Resources conducts its oil and gas operations in Appalachia through Triad Hunter, LLC, a wholly owned subsidiary of the company.