Two Fierce Competitors Join Forces to Drill in OH Utica Shale
Drilling company Magnum Hunter Resources announced a joint operating deal yesterday with Eclipse Resources to drill 12 Marcellus and 12 Utica Shale wells on 1,950 acres in Monroe County, OH over the next three years. Both companies together will invest $200 million in the program.
The reason for the partnership between these fierce competitors? According to Magnum Hunter, it’s due to the “treacherous terrain in this region” of the state. They want to pool resources and keep costs down. Of course, it also helps that Eclipse will start using Magnum’s pipeline system (Eureka Hunter Pipeline), providing more revenue for the midstream area of the business.