Magnum Hunter’s Marcellus Production Curtailed from Storm

You may or may not have heard about the severe thunderstorms that moved through the mid-Atlantic region last Friday afternoon. It resulted in 1.3 million people in Washington, D.C., Maryland and northern Virginia losing power. Some of them still don’t have power and won’t until later this week.

But what you may not realize is that the same storm also had a noticeable effect on the Marcellus Shale industry. The storms didn’t just stop around D.C.—they kept on going—right into the heart of Marcellus country. And the power outage caused problems for at least one driller, Magnum Hunter, who issued a press release with an update on the status of their operations in the region.

Magnum Hunter Resources Corporation ("Magnum Hunter" or the "Company") is providing a status report on the effect of the Company’s production in the Appalachia region, which includes West Virginia and Ohio, from a severe thunderstorm that hit the area last Friday afternoon. Due to loss of electricity in the region, the storm resulted in approximately 30 million cubic feet equivalent per day ("mmcfepd") net to Magnum Hunter being shut-in over the past three days. The Company has subsequently brought approximately 70% of the wells back online and anticipates the remaining shut-in production to be back in service over the next five days. None of the Company’s personnel were injured during this severe storm.

Additionally, due to the storm and the after effects, the Company has experienced gas production curtailments at the tailgate of its pipeline into Dominion Transmission as it relates to power and start-up issues at their Hastings processing facility located in Hastings, West Virginia, which could possibly continue for several weeks. Currently, approximately 17% (5.8 mmcfepd) of Magnum Hunter’s net production in this region is being curtailed.*

*Magnum Hunter (Jul 2, 2012) – Magnum Hunter Resources Provides Operating Status of Shut-In Appalachian Production Due to Severe Weather