Magnum Hunter Resources Provides Second Quarter 2013 Company Wide Operational Update

Magnum Hunter Resources Provides Second Quarter 2013 Company Wide Operational 
Update 
HOUSTON, TX -- (Marketwired) -- 07/09/13 --  Magnum Hunter Resources
Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE
MKT: MHR.PRE) (the "Company") announced today an operational update
on each of the Company's upstream unconventional resource plays for
the second quarter of 2013 which includes (i) the
Appalachia/Marcellus/Utica Shales, (ii) the Williston Basin, and
(iii) the Eagle Ford Shale/South Texas. Additionally, the Company has
also provided an operational update for the Company's midstream
division, Eureka Hunter Pipeline, LLC ("Eureka Hunter"). 
Appalachia 
On June 17, 2013, the Company completed the horizontal section of its
first Utica Shale well on the Farley Pad in Washington County, Ohio.
The Company currently plans to fracture stimulate this 100% owned
well in late July. The Company will then rest the well for 30-45 days
with an anticipated production test in late September 2013. 
Earlier this year, two 100% owned Marcellus Shale wells were drilled
and cased in our Ormet area of Monroe County, Ohio. Fracture
stimulation of the wells is timed to occur with planned additional
midstream capacity on the Eureka Hunter gathering system, completion
of which is expected in the fourth quarter of 2013. 
During the second quarter of 2013, in our non-operated Wetzel County,
West Virginia 50/50 joint venture with Stone Energy, 11 gross (5.5
net) Marcellus Shale wells, including the four described below, began
flowing to processing and sales at the MarkWest Mobley processing
plant. For the first time, all of the Company's production from its
operated and non-operated wells is now being processed at Mobley
which allows for liquids uplift.  
Drilling activity continues on a Stone Energy operated pad where the
horizontal lateral section is now being drilled on 8 gross (4 net)
additional Marcellus Shale wells. Production from this pad is
forecast to initiate in the fourth quarter of 2013. 
Highlights for the Appalachia Division include: 
Non-Operated 


 
--  Mills Wetzel #4H - This well was drilled and cased to a measured depth
    of 11,459 feet (horizontal lateral length of 3,630 feet), fraced with
    14 stages and tested April 14, 2013. The 24 hour flowing initial
    production rate was 3,044 Mcfepd on an adjustable choke with 1,500 psi
    FTP. Magnum Hunter owns a 50% working interest and Stone Energy is the
    operator.
    
    
--  Mills Wetzel #5H - This well was drilled and cased to a measured depth
    of 11,585 feet (horizontal lateral length of 3,700 feet), fraced with
    14 stages and tested April 14, 2013. The 24 hour flowing initial
    production rate was 3,225 Mcfepd on an adjustable choke with 1,300 psi
    FTP. Magnum Hunter owns a 50% working interest and Stone Energy is the
    operator.
    
    
--  Mills Wetzel #6H - This well was drilled and cased to a measured depth
    of 11,654 feet (horizontal lateral length of 3,820 feet), fraced with
    15 stages and tested April 14, 2013. The 24 hour flowing initial
    production rate was 3,787 Mcfepd on an adjustable choke with 1,650 psi
    FTP. Magnum Hunter owns a 50% working interest and Stone Energy is the
    operator.
    
    
--  Mills Wetzel #7H - This well was drilled and cased to a measured depth
    of 11,899 feet (horizontal lateral length of 4,075 feet), fraced with
    16 stages and tested April 14, 2013. The 24 hour flowing initial
    production rate was 3,560 Mcfepd on an adjustable choke with 1,700 psi
    FTP. Magnum Hunter owns a 50% working interest and Stone Energy is the
    operator.

  
The IP rates reflected above do not include natural gas liquids which,
when processed through the MarkWest Mobley plant, should add
approximately 420 Boepd, assuming 100% ethane rejection.  
Mr. James Denny, President of Triad Hunter, LLC, commented, "Our
Marcellus portfolio continues to deliver results consistent with our
expectations. Now that we have essentially drilled the corners of our
existing leasehold acreage Marcellus Shale position, we plan to
perform more pad type drilling, as we enter the "factory" stage of
development in this play. The Point Pleasant portion of the Utica
Shale is our next exploration target, and we are very pleased with
the log and core data obtained from our first Utica test well. We
anxiously look forward to initiating completion operations later this
month." 
Williston Basin 
North Dakota (Non-Operated)  
Second quarter activities in North Dakota included bringing on
production 19 gross (5.5 net) wells. At quarter end, there were 8
gross (1.6 net) wells fracture stimulated awaiting flowback, 11 gross
(2.9 net) wells drilled awaiting completion operations and 4 gross
(1.4 net) wells drilling.  
Highlights for North Dakota include: 


 
--  Border Farms 3130-5TFH - This 1 mile lateral well was drilled and
    cased to a measured depth of 14,300 feet (horizontal lateral length of
    6,075 feet), fraced with 26 stages and placed on production April 19,
    2013. The 24 hour flowing initial production rate was 626 Boepd.
    Magnum owns a 28.3% working interest.
    
    
--  Montclair 0112-2TFH - This well was drilled and cased to a measured
    depth of 17,710 feet (horizontal lateral length of 9,572 feet), fraced
    with 40 stages and placed on production May 7, 2013. The 24 hour
    flowing initial production rate was 683 Boepd. Magnum owns a 16.7%
    working interest.
    
    
--  J. Olson 22-15-162-98H 2DM - This well was drilled and cased to a
    measured depth of 18,215 feet (horizontal lateral length of 9,455
    feet), fraced with 36 stages and placed on production May 14, 2013.
    The 24 hour flowing initial production rate was 872 Boepd. Magnum owns
    a 36.25% working interest.
    
    
--  J. Olson 27-34-162-98H 2XM - This well was drilled and cased to a
    measured depth of 18,842 feet (horizontal lateral length of 10,096
    feet), fraced with 36 stages and placed on production May 19, 2013.
    The 24 hour flowing initial production rate was 820 Boepd. Magnum owns
    a 35.7% working interest.
    
    
--  Baja 2215-2H - This well was drilled and cased to a measured depth of
    18,155 feet (horizontal lateral length of 9,568 feet), fraced with 25
    stages and placed on production June 1, 2013. The 24 hour flowing
    initial production rate was 813 Boepd. Magnum owns a 30.4% working
    interest.
    
    
--  Baja 2215-3H - This well was drilled and cased to a measured depth of
    18,280 feet (horizontal lateral length of 9,820 feet), fraced with 25
    stages and placed on production June 1, 2013. The 24 hour flowing
    initial production rate was 1,076 Boepd. Magnum owns a 30.4% working
    interest.
    
    
--  Baja 2215-1H - This well was drilled and cased to a measured depth of
    17,977 feet (horizontal lateral length of 9,545 feet), fraced with 25
    stages and placed on production June 1, 2013. The 24 hour flowing
    initial production rate was 913 Boepd. Magnum owns a 30.4% working
    interest.

  
The ONEOK gas conservation and gathering project that has been under
construction was previously estimated to begin initial gas sales in
April 2013. ONEOK has finalized the build-out of the compression
station, high pressure 12" discharge line and 2 1/2 of the four
east-west gathering lines in Phase 1.  
ONEOK has experienced construction delays due to abnormally high
rainfall amounts during the second quarter causing production
curtailment. The system started to move natural gas volumes for the
first time during the last week of June. This major conservation
effort will tie in approximately 300 wells over the ensuing year.  
Middle Bakken exploration across the Ambrose Block has accelerated in
2013. Thirteen test wells have now been placed on production, all
yielding positive results. Eight new laterals are awaiting completion
and two multi-well eco-pads are currently drilling. Further
delineation of this formation will continue this year with
significant step-outs planned. 
Tableland  
During the second quarter of 2013, the focus of activities in the
Tableland Field in Canada shifted from drilling and completions to
facility optimization, with the third phase of field electrification
initiated (last six drilled wells). The gas conservation project to
interconnect our Tableland gas to the ONEOK North Dakota system was
initiated with the submission of NEB and FERC applications. 
Mr. Glenn Dawson, President of Williston Hunter, commented,
"Williston Hunter's shift to becoming an operator in North Dakota
continues to gain momentum. The first well in a 10-well program for
the balance of 2013 spud in late June at the Company's Mohall Madison
Unit located in Burke County, North Dakota. The remainder of the
drilling program targets high working interest Middle Bakken wells in
Divide County, lateral lengths of 1 to 1.5 miles with projected AFE
costs of approximately $4.2 million. In the Ambrose Field located in
Divide County, Middle Bakken exploration and development plans
continue to expand very favorably based on existing well performance
and new drilling successes. Our current CAPEX guidance provides for
up to forty (40) gross Middle Bakken wells planned to be drilled by
year-end 2013." 
Eagle Ford/South Texas 
On April 24, 2013, we sold our core properties in the oil window of
the Eagle Ford Shale in Gonzales and Lavaca Counties, Texas to a
wholly-owned subsidiary of Penn Virginia Corporation (NYSE: PVA)
("Penn Virginia") for a total purchase price of $401 million, paid to
us in the form of $361 million in cash (before customary purchase
price adjustments) and $40 million in Penn Virginia common stock
(valued, for purposes of the contract purchase price calculation, at
a price of $4.00 per share). We used the cash portion of the purchase
price to repay all our outstanding borrowings under our MHR Senior
Revolving Credit Facility and for general corporate purposes. 
The properties sold to the Penn Virginia affiliate included
approximately 19,000 net Eagle Ford Shale leasehold acres, and our
operating and non-operating leasehold working interests in certain
existing wells located in Gonzales and Lavaca Counties, Texas. The
transaction was structured as a sale to the Penn Virginia affiliate
of all of the outstanding capital stock of our wholly-owned
subsidiary, Eagle Ford Hunter, Inc. ("Eagle Ford Hunter"). The
effective date of the transaction was January 1, 2013. 
Prior to the closing of the transaction, Eagle Ford Hunter
transferred all of the assets and properties held by Eagle Ford
Hunter other than the properties in Gonzales and Lavaca Counties sold
to Penn Virginia, to one of our wholly-owned subsidiaries, Shale
Hunter, LLC. As a result, as of May 1, 2013, we continued to own
approximately 7,000 net Eagle Ford Shale leasehold acres located
primarily in Fayette, Lee and Atascosa Counties, Texas, of which
approximately 5,100 net acres are prospective for a combination
Pearsall/Eagle Ford Shale oil play in Atascosa County, Texas. The
Pearsall Shale is located approximately 2,500 feet beneath the Eagle
Ford Shale at depths ranging from 9,000 to 12,000 feet and is
approximately 300 to 400 feet in thickness.  
During the second quarter of 2013, Shale Hunter drilled and cased one
gross (.98 net) horizontal Eagle Ford well. This well is currently
waiting on fracture stimulation.  
In addition, we placed on production one gross (0.3 net) well in
South Texas. The Company participated (through a 31% non-operating
working interest) in a horizontal Pearsall well with Marathon Oil
Corporation as the operator. 
Highlights for the South Texas Division include: 
Non-Operated 


 
--  McCarty Unit A 1H - This well was drilled and cased to a measured
    depth of 17,438 feet (horizontal lateral length of 6,368 feet), fraced
    with 17 stages. The 24 hour flowing initial production rate was 584
    Boepd on an 18/64th adjustable choke with 2,185 psi FTP. Magnum Hunter
    owns a 31% working interest in the well and Marathon Oil is the
    operator.

  
Operated 


 
--  Peeler Ranch #4H - This well was drilled and cased to a measured depth
    of 15,206 feet (horizontal lateral length of 5,714 feet) and is
    currently waiting on fracture stimulation in the third quarter. Magnum
    Hunter owns a 98.4% working interest in the well and is the operator.

  
Mr. H.C. "Kip" Ferguson, President of Shale Hunter, LLC, commented,
"This combo Pearsall/Eagle Ford area has always been of interest to
our team. The right depth, gas-to-oil ratio, and completion style
will be required to optimize the potential for these formations. The
Pearsall Shale is different in composition to the Eagle Ford Shale.
It is composed of more silica with interbedded organic shale and
limestone. We believe that our Pearsall Shale acreage is located
within the wet gas to rich condensate window of the play, which is
ideally located between the Charlotte fault trend eight miles to the
north and the Karnes fault trend to the south. Our internal technical
analysis, core samples, our McCarty Unit A 1H well, and recent
third-party well results in the area, indicate potential for both
Eagle Ford Shale and Pearsall Shale productivity on this Atascosa
County acreage.  
Eureka Hunter 
During the second quarter of 2013, Eureka Hunter's focus has been on
expansion efforts in Monroe County, Ohio. Eureka Hunter has acquired
and cleared in excess of 20 miles of right-of-way in southeastern
Ohio and has initiated pipeline construction in this region. Eureka
Hunter anticipates production from Monroe County wells to begin
flowing into this new gathering system before year-end 2013 with
additional pipeline(s) to be installed throughout 2014.  
Eureka also set its third compressor at the Carbide central
facilities site in Wetzel County, West Virginia during the second
quarter to assist with low pressure gathering and to help manage
mainline pigging operations. Current daily throughput on Eureka
Hunter is averaging more than 110,000 Mcfpd, and Eureka Hunter
anticipates the connection of additional gas supplies in the third
and fourth quarters of 2013.  
TransTex Hunter, Eureka Hunter's treating and processing division,
experienced increased demand for gas treating units due to the slight
stabilization of gas prices and the continued drilling in the
liquids-rich resource plays, especially in the Eagle Ford Shale.
Opportunities in the gas processing sector are being driven by
producers seeking to take advantage of processing uplift. Currently,
TransTex Hunter is in the process of further expanding its existing
fleet by building smaller and medium size processing equipment which
will allow it to take advantage of producers' requirements for
processing while waiting for the larger cryogenic processing
facilities to be constructed, which require greater lead times. 
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, North Dakota, Kentucky, Texas and Saskatchewan, Canada. 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. 
For more information, please view our website at
www.magnumhunterresources.com. 
Forward-Looking Statements 
The statements and information contained in this press release that
are not statements of historical fact, including any estimates and
assumptions contained herein, are "forward looking statements" as
defined in Section 27A of the Securities Act of 1933, as amended,
referred to as the Securities Act, and Section 21E of the Securities
Exchange Act of 1934, as amended, referred to as the Exchange Act.
These forward-looking statements include, among others, statements,
estimates and assumptions relating to our business and growth
strategies, our oil and gas reserve estimates, our ability to
successfully and economically explore for and develop oil and gas
resources, our exploration and development prospects, future
inventories, projects and programs, expectations relating to
availability and costs of drilling rigs and field services,
anticipated trends in our business or industry, our future results of
operations, our liquidity and ability to finance our exploration and
development activities and our midstream activities, market
conditions in the oil and gas industry and the impact of
environmental and other governmental regulation. In addition, with
respect to any pending transactions described herein, forward-looking
statements include, but are not limited to, statements regarding the
expected timing of the completion of proposed transactions; the
ability to complete proposed transactions considering various closing
conditions; the benefits of any such transactions and their impact on
the Company's business; and any statements of assumptions underlying
any of the foregoing. In addition, if and when any proposed
transaction is consummated, there will be risks and uncertainties
related to the Company's ability to successfully integrate the
operations and employees of the Company and the acquired business.
Forward-looking statements generally can be identified by the use of
forward-looking terminology such as "may," "will," "could," "should,"
"expect," "intend," "estimate," "anticipate," "believe," "project,"
"pursue," "plan" or "continue" or the negative thereof or variations
thereon or similar terminology. 
These forward-looking statements are subject to numerous assumptions,
risks, and uncertainties. Factors that may cause our actual results,
performance, or achievements to be materially different from those
anticipated in forward-looking statements include, among others, the
following: adverse economic conditions in the United States, Canada
and globally; difficult and adverse conditions in the domestic and
global capital and credit markets; changes in domestic and global
demand for oil and natural gas; volatility in the prices we receive
for our oil, natural gas and natural gas liquids; the effects of
government regulation, permitting and other legal requirements;
future developments with respect to the quality of our properties,
including, among other things, the existence of reserves in economic
quantities; uncertainties about the estimates of our oil and natural
gas reserves; our ability to increase our production and therefore
our oil and natural gas income through exploration and development;
our ability to successfully apply horizontal drilling techniques; the
effects of increased federal and state regulation, including
regulation of the environmental aspects, of hydraulic fracturing; the
number of well locations to be drilled, the cost to drill and the
time frame within which they will be drilled; drilling and operating
risks; the availability of equipment, such as drilling rigs and
transportation pipelines; changes in our drilling plans and related
budgets; regulatory, environmental and land management issues, and
demand for gas gathering services, relating to our midstream
operations; and the adequacy of our capital resources and liquidity
including, but not limited to, access to additional borrowing
capacity. 
These factors are in addition to the risks described in the "Risk
Factors" and "Management's Discussion and Analysis of Financial
Condition and Results of Operations" sections of the Company's 2012
annual report on Form 10-K filed with the Securities and Exchange
Commission, which we refer to as the SEC. Most of these factors are
difficult to anticipate and beyond our control. Because
forward-looking statements are subject to risks and uncertainties,
actual results may differ materially from those expressed or implied
by such statements. You are cautioned not to place undue reliance on
forward-looking statements contained herein, which speak only as of
the date of this document. Other unknown or unpredictable factors may
cause actual results to differ materially from those projected by the
forward-looking statements. Unless otherwise required by law, we
undertake no obligation to publicly update or revise any
forward-looking statements, whether as a result of new information,
future events or otherwise. We urge readers to review and consider
disclosures we make in our reports that discuss factors germane to
our business. See in particular our reports on Forms 10-K, 10-Q and
8-K subsequently filed from time to time with the SEC. All
forward-looking statements attributable to us are expressly qualified
in their entirety by these cautionary statements.  
Contact:
Chris Benton 
AVP, Finance and Capital Markets
ir@magnumhunterresources.com
(832) 203-4539 
 
 
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