HOUSTON, TX--(Marketwired - Jun 23, 2014) - Magnum Hunter Resources Corporation (NYSE: MHR) (NYSE MKT: MHR.PRC) (NYSE MKT: MHR.PRD) (NYSE MKT: MHR.PRE) ("Magnum Hunter" or the "Company") announced today the formation of a new Joint Venture under a Joint Operating Agreement ("Agreement") with EM Energy Ohio, LLC ("EdgeMarc"), a privately-held company headquartered in Canonsburg, Pennsylvania. The contract area covers an existing mineral leasehold position currently owned by both companies which includes collectively approximately 1,080 net acres in the Marcellus Shale and Utica Shale Formations located in Washington County, Ohio.
Terms of the new Agreement include Magnum Hunter's wholly-owned subsidiary, Triad Hunter, LLC ("Triad Hunter") and EdgeMarc, collectively working together within the contract area on two units in Washington County, Ohio, the Merlin Pad and the Haynes Pad.
The Merlin Pad includes approximately 620 mineral acres (approximately 14% working interest to Triad Hunter and 86% working interest EdgeMarc) located in central Washington County, Ohio. Magnum Hunter and EdgeMarc have recently commenced drilling an initial Utica Shale well on this pad, where we will obtain critical reservoir information to help optimize infill development and completion design.
Later this year, we will spud the Haynes Pad; which includes approximately 460 mineral acres (approximately 89% working interest to Triad Hunter; 11% working interest to EdgeMarc) in an area where both the Marcellus and Utica shales should be productive. Magnum Hunter and EdgeMarc plan to initially drill one Marcellus and one Utica Shale well on this pad later this year; again taking critical reservoir information that will enable us to optimize our infill development plans.
Management Comments
Mr. Gary C. Evans, Chairman of the Board and Chief Executive Officer of Magnum Hunter, commented, "This will be the third joint venture we have entered into in this region. The first two were with Stone Energy and Eclipse Energy under similar arrangements in Wetzel County, West Virginia and Monroe County, Ohio, respectively. By forming these joint units, we more efficiently exploit the leasehold which allows for longer laterals to be drilled in both the Marcellus and Utica formations. This benefits the working interest owners and mineral interest owners alike. It also reduces overall costs by strategically locating the drilling pad in a manner that is most efficient for development due to the treacherous terrain typical in this area. We hope to form additional joint development units as we further exploit this resource rich area where we typically have two high quality formations stacked on top of one another."
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, development and production of crude oil, natural gas and natural gas liquids, primarily in the States of West Virginia, Ohio, and North Dakota. The Company is presently active in three of the most prolific unconventional shale resource plays in North America, namely the Marcellus Shale, Utica Shale, and Williston Basin/Bakken Shale.
Availability of Information on the Company's Website
Magnum Hunter is providing a reminder that it makes available on its website (at www.magnumhunterresources.com) a variety of information for investors, analysts and the media, including the following:
- annual reports on Form 10-K, quarterly reports on Form 10-Q, current reports on Form 8-K and any amendments to those reports as soon as reasonably practicable after the material is electronically filed with or furnished to the Securities and Exchange Commission;
- the most recent version of the Company's Investor Presentation slide deck;
- announcements of conference calls, webcasts, investor conferences, speeches and other events at which Company executives may discuss the Company and its business and archives or transcripts of such events;
- press releases regarding annual and quarterly earnings, operational developments, legal developments and other matters; and
- corporate governance information, including the Company's corporate governance guidelines, committee charters, code of conduct and other governance-related matters.
Magnum Hunter's goal is to maintain its website as the authoritative portal through which visitors can easily access current information about the Company. Over time, the Company intends for its website to become a primary channel for public dissemination of important information about the Company. Investors, analysts, media and other interested persons are encouraged to visit the Company's website frequently.
Certain information included on the Company's website constitutes forward-looking statements and is subject to the qualifications under the heading "Forward-Looking Statements" below and in the Company's Investor Presentation slide deck.
Forward-Looking Statements
This press release includes "forward-looking statements." All statements other than statements of historical facts included or incorporated herein may constitute forward-looking statements. Actual results could vary significantly from those expressed or implied in such statements and are subject to a number of risks and uncertainties. Although Magnum Hunter believes that the expectations reflected in the forward-looking statements are reasonable, Magnum Hunter can give no assurance that such expectations will prove to be correct. The forward-looking statements involve risks and uncertainties that affect operations, financial performance, and other factors as discussed in filings made by Magnum Hunter with the Securities and Exchange Commission (SEC). Among the factors that could cause results to differ materially are those risks discussed in the periodic reports filed by Magnum Hunter with the SEC, including Magnum Hunter's Annual Report on Form 10-K for the fiscal year ended December 31, 2013 and its Quarterly Reports on Form 10-Q for the fiscal quarters ended after such fiscal year. You are urged to carefully review and consider the cautionary statements and other disclosures made in those filings, specifically those under the heading "Risk Factors." Forward-looking statements speak only as of the date of the document in which they are contained, and Magnum Hunter does not undertake any duty to update any forward-looking statements except as may be required by law.