Magnum Hunter Resources Provides Operational Update on Its Marcellus and Utica Shale Plays
March 14, 2014 - HOUSTON, TX
Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) ("Magnum Hunter" or the "Company") announced today certain updates on its drilling and completion activities in the Marcellus and Utica Shale Plays.
Marcellus and Utica Drilling Update
Over the next 30 days, the Company anticipates production flowing to sales from 8 gross (7 net) wells in the Marcellus and Utica Shale Plays via the Company's majority owned Eureka Hunter Pipeline System. Of these wells, the Company anticipates the three WVDNR Pad wells located in Wetzel County, West Virginia, in which the Company owns a 100% working interest, will begin flowing to production sales over the next 17-20 days. The Stalder Pad wells, the Stalder #2MH and Stalder #3UH, will be turned into production over the next 10-12 days following the finalization of fracture stimulation of the Stalder Marcellus well which is nearing completion. In addition, the pipeline segment at the Ormet Pad is in the final stages of installation, and the Company anticipates the three wells on this pad to flow to production over the next 45 days. Following the completion of the WVDNR Pad wells, Stone Energy (under its joint venture with the Company) will then commence the completion of 4 gross (2 net to the Company) wells, already drilled and cased, located in Wetzel County, West Virginia, over the next couple of weeks with production flowing to sales anticipated in the next 60 days. The Company anticipates incremental production from the WVDNR, Stalder and Ormet Pad locations will be in the range of 6,000 - 8,000 barrels of oil equivalent per day net to the Company.
On the WVDNR Pad located in Wetzel County, West Virginia, the Company has drilled and completed the fracture stimulation of the three 100% owned Marcellus Shale wells, the WVDNR #1207, #1208 and #1209. The wells were drilled and cased to an average vertical depth of 7,500 feet with a 4,000 foot average horizontal lateral. The Company is currently cleaning up the location and anticipates production from the wells to begin flowing to sales over the next 17-20 days.
As previously reported, the Company drilled and completed three ~100% owned wells located on the Ormet Pad in Monroe County, Ohio. The wells were drilled and cased to an average vertical depth of 5,900 feet with a 3,900 foot average horizontal lateral. The Ormet wells tested at a combined rate of 11,669 Mcf of natural gas and 1,788 Bbl of condensate per day or 3,733 barrels of oil equivalent per day. Eureka Hunter is finalizing the connection of its pipeline segment from the Ormet Pad to its mainline, and the Company anticipates production from these wells to flow to sales over the next 45 days.
The Company's first Marcellus Shale well drilled on the Stalder Pad, the Stalder #2MH, has been drilled and cased, and the Company is currently fracture stimulating the remaining four stages of the well, which the Company expects to complete in the next couple of days. The Stalder #2MH was drilled and cased to a true vertical depth of 6,070 feet with a 5,474 foot horizontal lateral. The Company's first dry gas Utica Shale well, the Stalder #3UH, also located on the Stalder Pad in Monroe County, Ohio, is currently shut-in due to the fracture stimulation of the Stalder #2MH (the Marcellus well). Production from both Stalder wells will begin flowing to sales into the Eureka Hunter Pipeline over the next 10-12 days.
On the Farley Pad (100% owned wells) located in Washington County, Ohio, the Company has drilled and cased the Farley #1306H well in the Utica Shale to a true vertical depth of 7,850 feet with a 6,313 foot horizontal lateral. The Company has also completed the drilling of another Utica Shale well on the Farley Pad, the Farley #1304H, and is currently at total measured depth of 14,250 feet and expects to begin run casing in the next 3-5 days. The Farley #1304H was drilled to a true vertical depth of 7,914 feet with a 5,400 foot horizontal lateral. Following the drilling of the Farley #1304H, the Company will begin fracture stimulation of these two new Farley Utica wells later this month and expects to report initial production test rates in early-summer 2014 following an approximate 30-day resting period. The Company is in the advanced stages of completing a new take-away capacity agreement with a third-party midstream company and expects to be ready to flow production of all three wells on the Farley Pad to sales via a temporary sales line in August 2014.
On the Stewart Winland Pad located in Tyler County, West Virginia, the Company has drilled and cased two Marcellus Shale wells, the Stewart Winland #1301 and #1302. The wells were drilled and cased to an average true vertical depth of 6,155 feet with a 5,750 foot average horizontal lateral. The Company is currently drilling the lateral portion of the third Marcellus Shale well, the Stewart Winland #1303, to a true vertical depth of 6,155 feet with a 5,800 foot horizontal lateral. Following the completion of this third Marcellus well, the Company will walk the robotic drilling rig over to the next location and drill the first horizontal Utica Shale well ever drilled in the State of West Virginia. The Company expects to report initial production test rates from these four new 100% owned wells on the Stewart Winland Pad during mid-summer 2014.
Production results from the group of wells described above are anticipated to almost double the Company's current overall daily production volumes.
About Magnum Hunter Resources Corporation
Magnum Hunter Resources Corporation and subsidiaries are a Houston, Texas-based independent exploration and production company engaged in the acquisition, development and production of crude oil, natural gas and natural gas liquids, primarily in the States of West Virginia, Ohio, Kentucky, and North Dakota. The Company is presently active in three of the most prolific unconventional shale resource plays in North America, namely the Marcellus Shale, Utica Shale, and Williston Basin/Bakken Shale.
Availability of Information on the Company's Website
Magnum Hunter is providing a reminder that it makes available on its website (at www.magnumhunterresources.com) a variety of information for investors, analysts and the media, including the following:
- annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports as soon as reasonably practicable after the material is electronically filed with or furnished to the Securities and Exchange Commission;
- the most recent version of the Company's Investor Presentation slide deck;
- announcements of conference calls, webcasts, investor conferences, speeches and other events at which Company executives may discuss the Company and its business and archives or transcripts of such events;
- press releases regarding annual and quarterly earnings, operational developments, legal developments and other matters; and
- corporate governance information, including the Company's corporate governance guidelines, committee charters, code of conduct and other governance-related matters.
Magnum Hunter's goal is to maintain its website as the authoritative portal through which visitors can easily access current information about the Company. Over time, the Company intends for its website to become a primary channel for public dissemination of important information about the Company. Investors, analysts, media and other interested persons are encouraged to visit the Company's website frequently.
Certain information included on the Company's website constitutes forward-looking statements and is subject to the qualifications under the heading "Forward-Looking Statements" below and in the Company's Investor Presentation slide deck.
This press release includes "forward-looking statements." All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Although Magnum Hunter believes that the expectations reflected in the forward-looking statements are reasonable, Magnum Hunter can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings made by Magnum Hunter with the Securities and Exchange Commission (SEC). Among the factors that could cause results to differ materially are those risks discussed in the periodic reports filed by Magnum Hunter with the SEC, including Magnum Hunter's Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and its Quarterly Reports on Form 10-Q for the fiscal quarters ended after such fiscal year. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading "Risk Factors." Forward-looking statements speak only as of the date of the document in which they are contained, and Magnum Hunter does not undertake any duty to update any forward-looking statements except as may be required by law.
AVP, Investor Relations