Marcellus Shale

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.

Magnum Hunter Resources Acquires Marcellus Shale Acreage

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.