Magnum Hunter Resources Bakken First Quarter Update

Magnum Hunter Bakken Shale Map
Magnum Hunter Bakken Shale Map

During the first quarter of 2014, Magnum Hunter Resources participated in the drilling of 4 gross (0.7 net) non-operated wells in the Bakken/Three Forks Sanish formations in North Dakota. At the end of the quarter, 4 gross (1.0 net) wells were drilling or waiting on fracture stimulation. Capital expenditures since the first of the year in the Bakken amounted to $11.6 million.

Across the company's portfolio, oil and gas production increased 102% for the quarter to 14,796 boe/d, compared to the same time period last year.

Magnum Hunter First Quarter Bakken Operations Update

Magnum Hunter Resources reported one operated one-mile lateral well was completed in the Middle Bakken formation, with an average initial production (IP) 24-hour rate of 223 boe/d at a 35% water cut. Four non-operated two-mile lateral wells were completed in the Middle Bakken formation, with an average IP 24-hour rate of 534 boe/d. One non-operated, three-mile lateral well, was completed in the Middle Bakken formation, with an average IP 24-hour rate of 949 Boe/d, and seven non-operated two-mile lateral wells were completed in the Three Forks Sanish formation with an average IP 24-hour rate of 544 boe/d.

Magnum Hunter Bakken Midstream Update

In May of 2014, Magnum Hunter revealed it will begin transporting oil from some of its non-operated wells in Divide County, North Dakota, through a third-party, to the Colt Hub in Epping, North Dakota. The company expects ~51 existing wells, combined with 18 wells scheduled under the 2014 drilling program, to be connected to the gathering system, which is slated to be fully operational by September 2014. A truck terminal will also be constructed and connected to the gathering system to minimize oil hauling costs from wells not connected to the gathering system.

Furthermore, ~125 gross wells have now been connected into the Oneok gas gathering system in North Dakota. The company estimates current net throughput volumes on this system at approximately 1,000 Mcf/d and 170 barrels of NGLs, or 340 boe/d.