Magnum Hunter Resources Announces Successful Results for the Company Operated Eberstadt # 1 Well Located in Bee County, Texas
HOUSTON, TX--(Marketwire - February 3, 2010) - Magnum Hunter Resources Corporation (NYSE Amex: MHR) (NYSE Amex: MHR-PC) (the "Company" or "Magnum Hunter") announced today
successful drilling and completion results for the Company operated
Eberstadt # 1 well located in the South Caesar Field of Bee County Texas.
The Eberstadt # 1 began flowing to sales on February 1, 2010 with a daily
production rate of approximately 1,500 Mcf. The Company spudded the
Eberstadt # 1 on November 24, 2009, completed the well on December 18,
2009, and fraced the well on January 28, 2010. Total depth of the
Eberstadt #1 is 10,600 vertical feet with production from a gross 100 foot
thick section of the middle Wilcox formation. Currently, the Eberstadt #1
is exhibiting a flowing tubing pressure of 3,600 psi through a 12/64 inch
choke. Expected levels of daily production are anticipated to increase as
the well is still cleaning up post the January 28th frac.
The Company's working interest in this well and acreage position is 51.1%
(net revenue interest is 38.3%). With successful completion and startup of
production, the Eberstadt #1 sets up a 464 acre natural gas unit out of 950
total acres under lease. Company management believes at least two
additional locations can be drilled on this acreage position in the future.
The total cost to drill and complete the Eberstadt #1 was approximately
$2.0 million to the 100% working interest.
Management Comments
Mr. H.C. "Kip" Ferguson, EVP of Exploration of the Company, commented, "We
are pleased to announce successful results for our new discovery, the
Eberstadt #1 well. This Company operated lease associated with this well
was acquired in the Sharon Resources acquisition we completed last
September and is indicative of the quality of many unbooked prospects
within our portfolio today. Although Magnum Hunter's primary emphasis
going forward will be on adding incremental shareholder value from
developing our substantial unconventional acreage positions in the
Marcellus Shale and Eagle Ford Shale regions, the Company does have
residual conventional properties which we will continue to evaluate as we
are striving to achieve the highest possible return on our existing
assets."
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 of exploratory leases and producing properties, secondary
enhanced oil recovery projects, exploratory drilling, and production of oil
and natural gas in the United States. The Company is presently active in
three of the "big four" emerging shale plays in the United States.
For more information, please view our website at http://www.magnumhunterresources.com.
Forward-looking Statements
The statements contained in this press release that are not historical are
"forward-looking statements" within the meaning of Section 27A of the
Securities Act of 1933, as amended (the "Securities Act"), and Section 21E
of the Securities Exchange Act of 1934, as amended (the "Exchange Act"),
including statements, without limitation, regarding the Company's
expectations, beliefs, intentions or strategies regarding the future. Such
forward-looking statements may relate to, among other things: (1) the
Company's proposed exploration and drilling operations on its various
properties, (2) the expected production and revenue from its various
properties, (3) the Company's proposed redirection as an operator of
certain properties and (4) estimates regarding the reserve potential of its
various properties. These statements are qualified by important factors
that could cause the Company's actual results to differ materially from
those reflected by the forward-looking statements. Such factors include
but are not limited to: (1) the Company's ability to finance the continued
exploration, drilling and operation of its various properties, (2)
positive confirmation of the reserves, production and operating expenses
associated with its various properties; and (3) the general risks
associated with oil and gas exploration, development and operation,
including those risks and factors described from time to time in the
Company's reports and registration statements filed with the Securities and
Exchange Commission, including but not limited to the Company's Annual
Report on Form 10-K, Form 10-K/A and Form10-K/A for the year ended
December 31, 2008 filed with the Securities and Exchange Commission on
March 31, 2009, April 29, 2009 and September 11, 2009, respectively, and
the Company's Quarterly Reports on Form 10-Q for the quarters ending March
31, 2009, June 30, 2009 and September 30, 2009, filed on May 11, 2009,
August 14, 2009 and November 16, 2009, respectively. The Company cautions
readers not to place undue reliance on any forward-looking statements. The
Company does not undertake, and specifically disclaims any obligation, to
update or revise such statements to reflect new circumstances or
unanticipated events as they occur.
Contact Information: Contact:
M. Bradley Davis
Senior Vice President of Capital Markets
bdavis@magnumhunterresources.com
(832) 203-4545