Magnum Hunter Resources Corp., Houston, said its Triad Hunter LLC unit has acquired 15,558 gross (12,186 net) leasehold mineral interests prospective for the Utica shale predominately in Noble County, Ohio, for $24.8 million from an undisclosed seller.
The majority of the acreage is held by shallow production, but none of that production is acquired. The purchase includes all depths from 300 ft below the top of the Upper Ordovician Queenston formation. A second closing on another block of similar acreage may occur by Apr. 16, 2012, assuming the seller can satisfy title deficiency requirements.
The acquired acreage is near Triad Hunter’s existing acreage position in Washington and Noble counties, Ohio, and provides Triad Hunter 18,187 gross (14,815 net) acres in the two counties and a total of 23,214 gross (17,316 net) acres prospective for the Utica shale.
Magnum Hunter said the acquisition provides the expansion opportunity for its midstream business, Eureka Hunter Pipeline, to immediately begin construction into a region not served by competitors yet greatly controlled now by the upstream Appalachian Division.