The board of Houston independent Magnum Hunter Resources Corp. has approved a $400 million capital expenditure budget for fiscal year 2014, excluding acquisitions. The company intends to allocate $260 million in the Utica and Marcellus shale plays of Ohio and West Virginia, $50 million in the Williston basin, and $90 million for midstream activities at Eureka Hunter Pipeline.
The contemplated capital budget includes the acquisition of mineral leases in both the Utica and Marcellus shale plays. “This Appalachian-focused capital program is expected to further drive the company’s production volumes and enable it to achieve its 2014 projected exit production rate of 35,000 boe/d,” the company reported.
Magnum Hunter’s drilling capital in 2014 will be mainly concentrated on the delineation and development of its combined 180,000 net mineral acres in the Utica and Marcellus shale plays. Specifically, the company’s development plan will be to further delineate its acreage position in Monroe, Noble, and Washington counties in Ohio and in Tyler and Richie counties in West Virginia.
Magnum Hunter expects to operate 2-3 drilling rigs in Appalachia during 2014, and anticipates drilling 23-25 gross horizontal wells. The company also expects to participate predominantly as a nonoperated partner in the Williston basin and drill 15-20 gross wells mainly in Ambrose field in Divide County, ND.