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Mon, May 17, 2010
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Thu, May 13, 2010 Magnum Hunter Resources Announces 120% Increase in 2010 Capital Budget
HOUSTON, TX--(Marketwire - May 13, 2010) - Magnum Hunter Resources Corporation (
The Company plans to fund the increased fiscal year 2010 capex budget from a combination of existing liquidity (approximately $18 million) and from internally generated sources of cash flows.
In the Eagle Ford Shale located in Central and South Texas, Magnum Hunter has allocated approximately $30.0 million of capex (56% of the total). The first of these three wells is on schedule to spud on or about June 1st. A drilling rig has been contracted by Magnum Hunter to drill all three of the planned wells in the Eagle Ford Shale resource play back-to-back. The first well will be located in Gonzales County, the second well is planned for Atascosa County, and the location of the third well has yet to be determined. The balance of the Company's 2010 capex budget for this region will be for additional leasing related activities that are currently ongoing.
Magnum Hunter has allocated approximately $18.0 million of the 2010 capex budget (approximately 32% of the total) directed to the recently acquired Triad assets in northwestern West Virginia, including (i) $7.0 million to horizontally drill two Marcellus Shale locations in Tyler County, West Virginia prior to year-end 2010, and (ii) $8.5 million of the 2010 capex budget on upgrading, expanding and completing the Eureka Hunter Pipeline system located in West Virginia acquired with the Triad transaction. The new leg of this system currently under construction is anticipated to be operational by late August 2010. The balance of the Company's capex budget in Appalachia will be for new leasing activity and other oil and gas related projects including the expansion of an existing commercial saltwater disposal facility.
The remaining $7.0 million (12% of the total) will be directed toward ongoing exploration and development operations associated with Magnum Hunter's ownership interest in the Cinco Terry field of West Texas and for the drilling of two new wells in the Company operated East Chalkley oil field of South Louisiana.
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 prominent unconventional 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 and Triad's various properties, (2) the expected production and revenue from its and Triad's various properties, (3) the Company's proposed redirection as an operator of certain properties and (4) estimates regarding the reserve potential of its and Triad's 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 and Triad's various properties, (2) positive confirmation of the reserves, production and operating expenses associated with its and Triad's 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 for the year ended December 31, 2009 filed with the Securities and Exchange Commission on March 31, 2010. 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.
