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Ohio Utica Shale

New joint venture on Ohio's Monroe County

By Bob Downing Published: January 4, 2013

Texas-based Magnum Hunter Resource Corp. says its subsidiary, Triad Hunter, will partner with Pennsylvania-based Eclipse Resource I LP, on a $200 million project in Ohio's Monroe County.

The plans call for 12 horizontal wells in the Utica shale and 12 in the Marcellus shale over the next three years.

Here is the press release announcing the plans:

 

 
 
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2012 News
Magnum Hunter Resources Further Expands Marcellus and Utica Leasehold Position in Ohio

HOUSTON, TX -- (Marketwire) -- 01/02/13 -- Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) (the "Company") announced today a new Joint Operating Agreement ("Agreement") with Eclipse Resources I, LP ("Eclipse"), a privately-held company headquartered in State College, Pennsylvania. The contract area covers an existing mineral leasehold position currently owned by both companies in the Marcellus Shale and Utica Shale Formations located in Monroe County, Ohio.

Terms of the new Agreement include Magnum Hunter's wholly-owned subsidiary, Triad Hunter, LLC ("Triad Hunter") and Eclipse, collectively working together within the contract area on an equal and joint basis on approximately 1,950 net mineral acres with the objective of drilling approximately twelve horizontal wells in the Marcellus Shale and twelve horizontal wells in the Utica Shale over the next three years. It is estimated that the total combined capital costs associated with this development effort in the contract area will exceed $200 million. Triad Hunter has been designated Operator within the contract area and each company will own approximately 47% working interest under the Agreement. The balance of the working interest within the contract area is owned by industry third parties. Eclipse has also agreed to commit its share of production from the contract area to a new pipeline system currently under construction by Magnum Hunter's subsidiary, Eureka Hunter Pipeline, LLC.

Magnum Hunter Management Comments

Mr. James W. Denny, III, President of Triad Hunter, LLC, commented, "We are pleased to partner with such a formidable competitor in our region such as Eclipse Resources. Our geological interpretation of this area indicates the potential to yield not only high volume wells in the Utica Shale, but it is also located within the liquids-rich regime of the Marcellus Shale where Triad Hunter has already drilled two successful Marcellus wells immediately adjacent to these properties. Due to the treacherous terrain in this region and the need to minimize our collective footprint, forming partnerships like this enable us to maximize drainage of our leasehold position. This joint venture allows Triad Hunter to continue its strategy of developing high-quality reserves, while providing our midstream affiliate, Eureka Hunter Pipeline, the opportunity to further expand its footprint into Ohio."

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Utica and Marcellus shale web sites

Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

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.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

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.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.