By OGJ editors
HOUSTON, May 26 -- Magnum Hunter Resources Corp., Houston, and private Dallas independent Hunt Oil Co. plan to drill as many as two horizontal exploratory wells in the Eagle Ford shale oil window on a 28,187-gross acre area of mutual interest in Gonzales and Lavaca Counties, Tex.
The agreement extends through December 2014, and the two companies cross-assigned interests and will share all future costs equally.
The company that contributed each lease has the right to operate wells on that lease.
One of the first two exploratory wells to be drilled will be the Magnum Hunter-operated Gonzo Hunter-1H well in Gonzales County, to spud around June 1. The joint agreement allows for the option of a second well to be drilled on Hunt Oil acreage this year.
Magnum Hunter allocated $30.7 million from its $55 million fiscal 2010 capital budget Eagle Ford joint venture. Of that, $10.6 million will be to horizontally drill three unbooked Eagle Ford exploratory locations. The rest of the company’s 2010 capital expenditures is dedicated to the Eagle Ford shale play for further leasing.