Magnum Hunter sold off its non-core Eagle Ford assets in 2013. In 2014, the company is focusing on its core Appalachia and Williston Basin areas. $52 million of the company's $400 million capital budget will be spent in the Williston Basin in 2013. 65% of the budget will be spent on the company's Appalachia assets.
Read more: Magnum Hunter Signs Option to Sell Pearsall and Eagle Ford Assets
“In a company statement, Magnum Hunter CEO Gary Evans said, “we made the decision to sell our Eagle Ford assets [] for a contracted price of $401 million and redeploy those proceeds to our two remaining core areas, Appalachia and the Williston Basin. Revenues were still up over 72% and EBITDAX increased 48%. We drilled 21 gross wells (12.5 net) in the Marcellus and Utica resource plays and drilled 72 gross (24.6 net) in the Bakken and Three Forks Sanish plays of the Williston Basin.”
Magnum Hunter Bakken & Three Forks Fourth Quarter Operations
In the fourth-quarter of 2013, Magnum Hunter drilled 15 gross (6.2. net) in the Bakken/Three Forks formations. In its operated areas, the company drilled 2 wells, and in non-operated areas, 13 gross (4.2 net) wells were drilled.
Initial production (IP) rates varied across the company's Williston Basin acreage. In the Middle Bakken Formation, six two-mile lateral wells completed, with an average 24-hour IP rate of 561 boe/d and a 30-day rate of 389 boe/d. Two one-mile laterals were also completed in the Middle Bakken. At the end of the year, one well had a 24-hour IP rate of 680 boe/d and a 30-day rate of 253 boe/d. In the Three Forks/Sanish Formation, seven two-mile lateral wells were completed, with an average 24-hour IP rate of 584 boe/d and a 30-day rate of 287 boe/d. One one-mile lateral was also completed in the Three Forks/Sanish. It had an a 24-hour IP rate of 760 boe/d and a 30-day rate of 282 boe/d.
Magnum Hunter 2013 Bakken & Three Forks Capital Spending
Upstream capital spending in the Williston Basin during the fourth-quarter was $19.7 million in 2013. For the full-year, the company spent $131.8 million. That was ~43% of the company's total upstream capex budget for the year.