Magnum Hunter Entering Utica-Point Pleasant In 2013
Magnum Hunter Resources is the next company focusing on the Utica-Point Pleasant formation in 2013. The company, based out of Houston, is an independent exploration and production company active in West Virginia, Kentucky, Ohio, Texas, North Dakota, and Saskatchewan, Canada. In the Utica/Point Pleasant, Magnum Hunter will be developing a minimum of 4 test wells this year through its wholly-owned subsidiary, Triad Hunter, LLC.
Magnum Hunter Resources first test well will be developed in Washington County in late February or early March. This will be the first Utica-Point Pleasant well developed in Washington County. The Farley Pad will have the capability to host 4 separate laterals.
The original test well will be a vertical well through the Utica-Point Pleasant to look at coring and logging data. After the data is examined and determined to have the potential to yield natural gas, the vertical well will be cemented back and turned into a horizontal lateral with a lateral length of 6,000 feet.
Magnum Hunter will be one of two companies developing wells in Washington County. PDC Energy will also be developing a well in Washington County in 2013. If both comeback with promising results, we could soon see more activity in Washington County.
The other three additional wells being planned by Magnum Hunter will be located in Monroe County through a joint venture with Eclipse Resources. Magnum Hunter will be developing the additional Utica-Point Pleasant wells in combination with their liquids rich Marcellus development in the county.
In addition, during a recent announcement regarding the Eclipse and Magnum Hunter Resources joint venture, the companies announced they planned to develop twelve horizontal Marcellus Shale wells and twelve horizontal Utica Shale wells over the next three years in Monroe County. The estimated investment to develop these wells is approximately $200 million.
We are very excited to begin accelerating our testing program in the Utica formation located in Ohio. Development of this exciting and highly productive unconventional play could have significant impact to our company. As nearby offset operators results have validated our geologic interpretation, we are confident that our leasehold position will yield anticipated results- James W. Denny, III, President of Triad Hunter
Magnum Hunter has also been looking closely at nearby operators like CONSOL and Antero in Noble County as it is determining to develop its Noble County acreage. With such promising results from each of these companies as well as geological data, Magnum Hunter is already in the process of drafting engineering plans for an additional well in Noble County. The Crooked Tree Pad located in Noble County is being designed with the potential for ten horizontal wells.
Through Triad Hunter, Magnum Hunter has acquired mineral rights to about 107,000 gross Utica-Point Pleasant acres. They estimate about 41,000 gross acres to be located within the wet gas window. With such promising acreage, Magnum Hunter is looking to develop more than the original four wells this year if their initial wells come back with the anticipated promising results.