The Utica Shale play continues its trek to the southeast, as Houston-based Magnum Hunter Resources (NYSE: MHR) recently reported a peak rate of 46.5 million cubic feet per day (MMcf/d) on one of its West Virginia wells—the largest IP rate for a Utica well so far. The well was drilled from the company’s 100% owned Stewart Winland pad in Tyler County, and was fracked in 22 stages on a 5,289-foot lateral.

The Utica Shale play continues its trek southeast into West Virginia, as Houston-based Magnum Hunter Resources (NYSE: MHR) recently reported the largest IP rate for a well in the play so far.

Magnum Hunter said late September one of its West Virginia wells had a peak rate of 46.5 million cubic feet per day (MMcf/d). The well was drilled from the company’s 100% owned Stewart Winland pad in Tyler County, and was fracked in 22 stages on a 5,289-foot lateral.

The results caught the attention of analysts, some of whom have been watching for West Virginia to possibly become the core of the dry gas window of the play.

“This news should be a big positive for MHR given its ~110,000 net acres prospective for the Utica [half in surrounding area] as well as nearby names AR, CNX, COG, EQT, GST, GPOR, RICE, RRC, SGY and private Fossil Creek Ohio,” according to a research note by SunTrust Robinson Humphrey.

Wunderlich Securities also released a flash note on the heels of the well results, focusing on the three Marcellus wells drilled and completed on the same pad as the Utica well. The Sept. 25 report noted the wells were waiting on air permits to begin production, and that the West Virginia Department of Environmental Protection is currently dealing with large volumes of permits. “There are only 11 engineers for the entire state and the number of air permits this year has almost doubled since last year,” according to the report.

Wunderlich ascribed the backlog to “growing pains,” not uncommon in areas with exponential growth. “What is happening in West Virginia is not out of the norm,” according to the report. Wunderlich, which gave MHR a price target of $13, added that the company is “realistic” about the permitting process.

“We have factored in ~2,100 barrels of oil equivalent per day (boe/d) of production from the Stewart Winland pad for 3Q14,” according to the report. “As a result, we will have to reduce our current average production estimate of 18,488 boe/d for the quarter by 11%.”

“We believe MHR is the best way to play the dry gas Utica Shale in Ohio/West Virginia,” according to a September 24 flash report from Topeka Capital Markets, which reaffirmed its $12 price target (PT) and Buy rating. “We would take advantage of the recent sell-off [triggered by tight liquidity and weak natural gas prices], given the company is sitting on one of the most economic dry gas shale plays in the country and we believe several liquidity events are coming.”

Topeka’s fervor had cooled slightly by the time MHR announced plans to obtain two new credit facilities and to refinance its existing facility on Oct. 6. The new facilities are expected to initially increase the company’s liquidity to around $115 million.

“We reaffirm our Buy on the company’s core Marcellus/Utica assets and the upcoming liquidity events,” according to an Oct. 6 Topeka report. “We lower our price target to $10 [from $12] on our reduced estimates and the multiple contraction in the sector.”

Topeka also lowered its third-quarter production estimate to 16 Mboe/d from 19.3 Mboe/d, “as pad shut-ins, due to offset drilling/completions during the quarter have impacted volumes,” according to the report.