Magnum Hunter Resources Announces Joint Development Venture in Washington County, Ohio
June 23 2014 - 7:00AM
Marketwired
Magnum Hunter Resources Announces Joint Development Venture in
Washington County, Ohio
HOUSTON, TX--(Marketwired - Jun 23, 2014) - Magnum Hunter
Resources Corporation (NYSE: MHR) (NYSEMKT: MHR.PRC) (NYSEMKT:
MHR.PRD) (NYSEMKT: MHR.PRE) ("Magnum Hunter" or the "Company")
announced today the formation of a new Joint Venture under a Joint
Operating Agreement ("Agreement") with EM Energy Ohio, LLC
("EdgeMarc"), a privately-held company headquartered in Canonsburg,
Pennsylvania. The contract area covers an existing mineral
leasehold position currently owned by both companies which includes
collectively approximately 1,080 net acres in the Marcellus Shale
and Utica Shale Formations located in Washington County, Ohio.
Terms of the new Agreement include Magnum Hunter's wholly-owned
subsidiary, Triad Hunter, LLC ("Triad Hunter") and EdgeMarc,
collectively working together within the contract area on two units
in Washington County, Ohio, the Merlin Pad and the Haynes Pad.
The Merlin Pad includes approximately 620 mineral acres
(approximately 14% working interest to Triad Hunter and 86% working
interest EdgeMarc) located in central Washington County, Ohio.
Magnum Hunter and EdgeMarc have recently commenced drilling an
initial Utica Shale well on this pad, where we will obtain critical
reservoir information to help optimize infill development and
completion design.
Later this year, we will spud the Haynes Pad; which includes
approximately 460 mineral acres (approximately 89% working interest
to Triad Hunter; 11% working interest to EdgeMarc) in an area where
both the Marcellus and Utica shales should be productive. Magnum
Hunter and EdgeMarc plan to initially drill one Marcellus and one
Utica Shale well on this pad later this year; again taking critical
reservoir information that will enable us to optimize our infill
development plans.
Management Comments
Mr. Gary C. Evans, Chairman of the Board and Chief Executive
Officer of Magnum Hunter, commented, "This will be the third joint
venture we have entered into in this region. The first two were
with Stone Energy and Eclipse Energy under similar arrangements in
Wetzel County, West Virginia and Monroe County, Ohio, respectively.
By forming these joint units, we more efficiently exploit the
leasehold which allows for longer laterals to be drilled in both
the Marcellus and Utica formations. This benefits the working
interest owners and mineral interest owners alike. It also reduces
overall costs by strategically locating the drilling pad in a
manner that is most efficient for development due to the
treacherous terrain typical in this area. We hope to form
additional joint development units as we further exploit this
resource rich area where we typically have two high quality
formations stacked on top of one another."
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, 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.
Forward-Looking Statements
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.
Contact: Cham King AVP, Investor Relations
ir@magnumhunterresources.com 832-203-4560