Magnum Hunter Resources Corp. (MHR) detailed first-quarter 2015 financial results on May 11. The quarter ended March 31.
The estimated total proved reserves increased by 73% to 869.2 billion cubic feet equivalent (Bcfe) of natural gas, higher than year-end 2014’s 502.8Bcfe. This was due to increased proved undeveloped (PUD) reserves after the addition of 20 new Utica PUD locations and 23 new Marcellus, the company said.
Magnum owns about 130,000 net leasehold acres in the Utica. It is finalizing about 54 additional drilling units within its core Utica and Marcellus acreage positions.
On March 31, all of its Appalachian Basin properties accounted for about 90% of the company’s total proved reserves volumes. The Williston Basin accounted for the remaining 10%, roughly, of total proved reserves volumes.
During first-quarter 2015, oil and gas production increased 66% to about14.7 Bcfe This amount is about 2.5 million barrels of oil equivalent (MMboe), or about 163.6 MMcfe/d (about 27,261boe/d), 74% natural gas, 13% oil and 13% NGL.
For the remainder of the year, average daily production is expected to range between 180MMcfe/d to 204MMcfe/d.
There is $47.2 million in capex, and during the quarter only 52% was used for budgeted projects. This percentage consisted of $7.3 million for nonoperated Bakken properties and $17 million for leasehold acquisitions. There were no Marcellus and Utica drilling and completions. The rest of the budget is slated for West Virginia and Ohio drilling and completions.
Magnum has about 44 net horizontal wells producing in the Marcellus. During the quarter, seven net wells—four new and three previously shut in—were put on production. There are no active drilling rigs or completions crews. Operations for five net wells that are in stages of drilling have been suspended, the company added.
There are four net horizontal wells producing in the Utica. Magnum placed 1.5 on production during the quarter. There are no active drilling rigs or completions crews. Operations for two net wells awaiting fracturing, and three other net wells being drilled, have been suspended.
Magnum Hunter Resources Inc. is based in Dallas, Texas.
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