From Magum Hunter Resources:
|Magnum Hunter Resources Provides Second Quarter 2013 Company Wide Operational Update|
HOUSTON, TX -- (Marketwired) -- 07/09/13 -- Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) (the "Company") announced today an operational update on each of the Company's upstream unconventional resource plays for the second quarter of 2013 which includes (i) the Appalachia/Marcellus/Utica Shales, (ii) the Williston Basin, and (iii) the Eagle Ford Shale/South Texas. Additionally, the Company has also provided an operational update for the Company's midstream division, Eureka Hunter Pipeline, LLC ("Eureka Hunter").
On June 17, 2013, the Company completed the horizontal section of its first Utica Shale well on the Farley Pad in Washington County, Ohio. The Company currently plans to fracture stimulate this 100% owned well in late July. The Company will then rest the well for 30-45 days with an anticipated production test in late September 2013.
Earlier this year, two 100% owned Marcellus Shale wells were drilled and cased in our Ormet area of Monroe County, Ohio. Fracture stimulation of the wells is timed to occur with planned additional midstream capacity on the Eureka Hunter gathering system, completion of which is expected in the fourth quarter of 2013.
During the second quarter of 2013, in our non-operated Wetzel County, West Virginia 50/50 joint venture with Stone Energy, 11 gross (5.5 net) Marcellus Shale wells, including the four described below, began flowing to processing and sales at the MarkWest Mobley processing plant. For the first time, all of the Company's production from its operated and non-operated wells is now being processed at Mobley which allows for liquids uplift.
Drilling activity continues on a Stone Energy operated pad where the horizontal lateral section is now being drilled on 8 gross (4 net) additional Marcellus Shale wells. Production from this pad is forecast to initiate in the fourth quarter of 2013.
Highlights for the Appalachia Division include:
The IP rates reflected above do not include natural gas liquids which, when processed through the MarkWest Mobley plant, should add approximately 420 Boepd, assuming 100% ethane rejection.
Mr. James Denny, President of Triad Hunter, LLC, commented, "Our Marcellus portfolio continues to deliver results consistent with our expectations. Now that we have essentially drilled the corners of our existing leasehold acreage Marcellus Shale position, we plan to perform more pad type drilling, as we enter the "factory" stage of development in this play. The Point Pleasant portion of the Utica Shale is our next exploration target, and we are very pleased with the log and core data obtained from our first Utica test well. We anxiously look forward to initiating completion operations later this month."
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