Magnum Hunter Completes Four Marcellus Wells in WV Q411

Magnum Hunter, a Houston, TX-based independent exploration and production company, issued an operational update for Q4 2011 yesterday. Following is the section reporting on their drilling operations in the Appalachian/Marcellus region:

During the fourth quarter of 2011, the Appalachian Basin Division completed most notably four successful 100% working interest horizontal operated wells located in the Marcellus Shale. Highlights include:

  • The Roger Weese #1110, located in Tyler County, West Virginia, was drilled to a measured depth of 11,033 feet (horizontal lateral length of 4,350 feet). The well was fraced with 16 stages and tested at an IP24 rate of 9.7 MMcfepd on an adjustable choke with a 2,437 psi FCP. The well was placed on production October 25, 2011.
  • The Everett Weese #1107, located in Tyler County, West Virginia, was drilled to a measured depth of 12,135 feet (horizontal lateral length of 5,300 feet) The well was fraced with 18 stages and was tested at an IP24 rate of 9.6 MMcfepd on an adjustable choke with a 2,650 psi FCP. The well was placed on production December 20, 2011.
  • The Everett Weese #1108, located in Tyler County, West Virginia, was drilled to a measured depth of 12,155 feet (horizontal lateral length of 5,200 feet). The well was fraced with 16 stages and tested at an IP24 rate of 9.4 MMcfepd on an adjustable choke with a 2,091 psi FCP. The well was placed on production December 20, 2011.
  • The Everett Weese #1109, located in Tyler County, West Virginia, was drilled to a measured depth of 12,343 feet (horizontal lateral length of 5,550 feet). The well was fraced with 18 stages and tested at an IP24 of 9.5 MMcfepd per day on an adjustable choke with a 2,471 psi FCP. The well was placed on production December 20, 2011.

In addition to the Company’s Marcellus Shale drilling program during fiscal year 2011, 21 gross wells (17.9 net wells) were drilled in Kentucky principally to maintain our large acreage position of approximately 300,000 net acres. These wells are comprised of four Weir Oil wells, two in the Arch Field and two in the Amvest Field, and twelve Lower Huron Shale wells, six in the Fonde Field, five in the Amvest Field, and one in the Martin’s Fork Field. In addition, five Cleveland Shale wells were drilled, two in Martin’s Fork Field, two in Amvest Field, and one in the Straight Creek Field. Initial production rates from these newly completed wells ranged from 400,000 Mcfe – 1.3 Mmcfe per day each.

Mr. Jim Denny, President of the Appalachian Basin Division, commented, "During the fourth quarter of fiscal year 2011, the Appalachian Basin Division drilled, completed and tested four very successful liquids-rich Marcellus Shale horizontal wells on our Northwestern West Virginia lease acreage. As experienced in other operating divisions within Magnum Hunter, the more history and experience we gain in our regional development has resulted in successfully obtaining better overall production results. A combination of longer laterals, more frac stages, and certain modifications to down hole equipment has led to consistent new well completions ranging from 8.0 – 10.0 MMcfepd per well in the Marcellus Shale. Our existing mineral lease acreage position appears to be some of the best in the entire Marcellus Shale due to the significant liquids content of the gas stream. When one compares internal rates of return on capital deployed, our high Btu equivalent in our natural gas stream provides economics not seen elsewhere in natural gas development. We have a significant inventory for many years to come with 774 net drilling locations currently identified across our 369,000 net leasehold acreage position. Our Company’s in-house reservoir engineers have identified net possible reserves of 265 Million Boe, and 44 Million Boe of contingent resources over our entire Appalachian mineral acreage."*

*Magnum Hunter (Jan 30, 2012) – Magnum Hunter Provides Fourth Quarter 2011 Company Wide Operational Update