Item 7.01 Regulation FD Disclosure.
Magnum Hunter Resources Corporation (the “Company”) is filing this Current Report on Form 8-K to (i) provide an update on its drilling activities on its Stewart Winland pad in Tyler County, West Virginia; and (ii) provide an update on its leasehold acreage acquisition activities in West Virginia and Ohio.
Stewart Winland Pad Drilling Update
On May 12, 2014, the Company completed the drilling of the vertical pilot hole for its first Utica Shale well in West Virginia, located on the Stewart Winland pad in Tyler County, West Virginia. The Stewart Winland #1300 was drilled to a true vertical depth of 11,050 feet. Shortly after reaching TD, the Company performed extensive logging and core analysis on the well to test for the presence of hydrocarbons and validate the leasehold acreage in West Virginia. Based on preliminary wireline logging data, the well encountered 109 net feet of hydrocarbons in a high quality carbonate Ordovician-aged reservoir, which reservoir appears consistent with the formation encountered by the Company’s Stalder Utica well located in Monroe County,Ohio. The Stewart Winland #1300 well’s targeted Utica/Point Pleasant formation is approximately 350 feet deeper than that same formation to which the Company’s first Utica Shale dry gas well, the Stalder #3UH in Monroe County, Ohio, was drilled. The wireline logging data has confirmed the Point Pleasant target formation from the Stewart Winland #1300 pad location contains hydrocarbons and appears to possibly have even more bottomhole pressure than the Stalder #3UH. In addition, based on their respective well logs, the Stewart Winland #1300 demonstrates resistivity, porosity and permeability very similar to that of the Stalder #3UH. The Company is currently in the process of plugging back the Stewart Winland #1300 and will drill a 5,500 foot lateral with approximately 22 frac stages upon completion. Following the completion of drilling operations on the Stewart Winland #1300, the Company will commence the fracture stimulation of its four 100% working interest wells on the Stewart
Winland pad (three Marcellus Shale wells and the Stewart Winland #1300 Utica Shale well), with initial production test rates from the wells expected in August.
Update on Leasehold Acreage Acquisition Activities in Appalachia
The Company continues to acquire mineral leases in both West Virginia and Ohio to increase its overall leasehold acreage ownership position. As of May 12, 2014, the Company had approximately 83,700 gross (78,600 net) mineral acres in the Marcellus Shale and approximately 116,650 gross (105,660 net) mineral acres in the Utica Shale. Recently, the Company has closed on 5,250 gross (2,660 net) mineral acres in the Utica Shale in Ohio at an average price of $4,700 per acre. The Company plans to continue acquiring additional mineral leases in the Marcellus Shale and Utica Shale plays in Ohio and West Virginia, as it continues its efforts to build out its leasehold acreage position in this region.
Average price per acre 4,700.00? I hope that isnt in monroe county