Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.
From Texas-based Magnum Hunter:
HOUSTON, TX -- (Marketwired) -- 04/03/13 -- Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) (the "Company" or "Magnum Hunter"), on Wednesday announced that it has entered into a definitive agreement to sell all of its ownership interests in the Company's Eagle Ford Shale oil and gas properties in Gonzales and Lavaca Counties of South Texas to a wholly-owned subsidiary of Penn Virginia Corporation (NYSE: PVA) ("Penn Virginia") for a total purchase price of $401 million. The effective date of the sale will be January 1, 2013.
The transaction has been structured as a sale by Magnum Hunter of its 100% stock ownership interest in a wholly-owned subsidiary, Eagle Ford Hunter, Inc. Of the properties to be sold to Penn Virginia, there exists approximately 19,000 net mineral acres in this entity along with 49 producing wells, 7 wells drilled and in the completion stage and 4 wells currently drilling. For the month of March 2013, the average daily production for the properties was approximately 3,000 Boepd. The total consideration for this transaction will be paid approximately 90% ($361 million) in cash and, at the option of Penn Virginia, the remaining approximately 10% ($40 million) either in cash or shares of common stock of Penn Virginia, valued at $4.00 per share. Upon closing, Magnum Hunter plans to use the net proceeds from the transaction to reduce overall indebtedness, including borrowings under its Revolving Credit Facility and for other general corporate purposes. The transaction is expected to close in early to mid-May 2013, and is subject to customary closing conditions and purchase price adjustments.
Following the consummation of this transaction, the Company will continue to own approximately 7,000 net mineral acres located in Fayette, Lee, and Atascosa Counties in South Texas. Magnum Hunter is participating in a new horizontal Pearsall Shale well with Marathon Oil Corporation that is currently drilling in Atascosa County.
Mr. Gary C. Evans, Chairman of the Board and Chief Executive Officer of Magnum Hunter Resources, commented, "The announcement of the sale of this property today is 'bitter sweet' for our Management and Board. Our Company's entry into the Eagle Ford Shale initially began when we acquired Sharon Resources, Inc. back in September 2009 for $2.35 million, which was an all-stock transaction that resulted in 5.6% dilution of the Company at that time. Since the acquisition of Sharon, now known as Eagle Ford Hunter, the Company has deployed approximately $263 million of new capital for development in the Eagle Ford and has generated approximately $80 million of net cash flow from this region as of the beginning of this year. Based on the $401 million purchase price announced today and the net investment to-date, this implies over a two times return on capital invested over the past three years and an IRR in excess of 80%. We believe this sale to Penn Virginia fits their existing asset base which is located adjacent to these properties and future drilling plans in the Eagle Ford Shale very well. It has always been our belief that as the various shale plays mature, building scale is extremely important for achieving long term economic value and that is what is being accomplished today. We wish Penn Virginia success in this transaction."