Magnum Hunter announces Gulf of Mexico discoveries

Magnum Hunter Resources Inc., Irving, Tex., said Friday that it has participated recently in two natural gas discoveries in the shallow waters of the US Gulf of Mexico. The company says it has had success on all seven of its Gulf of Mexico exploration prospects this year and on 12 out of 14 prospects since entering the Outer Continental Shelf in May 1999.

Aug 14th, 2000


Magnum Hunter Resources Inc., Irving, Tex., said Friday that it has participated recently in two natural gas discoveries in the shallow waters of the US Gulf of Mexico. The company says it has had success on all seven of its Gulf of Mexico exploration prospects this year and on 12 out of 14 prospects since entering the Outer Continental Shelf in May 1999.

The OCS-G 15231 No. 1 exploratory well on South Marsh Block 235 was drilled to 10,670 ft and logged more than 74 ft of net gas-condensate pay in Miocene sands. Plans are underway to install a production platform to develop this property in conjunction with adjacent South Marsh Island Block 234. An extension well will be drilled on Block 234 during the first quarter of 2001.

Basin Exploration Inc., Denver, operates South Marsh Island Blocks 234 and 235 with a 75% working interest. Magnum Hunter owns the remaining 25% in both tracts.

An exploratory well was recently drilled on South Timbalier Block 250 to 5,500 ft and logged 60 ft of net gas pay in a Pleistocene sand. The discovery will be connected to production facilities on South Timbalier Block 265, in which Magnum Hunter owns a 100% interest. First production is anticipated during first quarter 2001.

Magnum Hunter and Chieftain International Inc., Edmonton, Alta., each own a 50% working interest in South Timbalier Block 250. Magnum Hunter and its affiliates will operate the production from this discovery.

Also in the Gulf of Mexico, production began Aug. 3 from an earlier discovery on Ship Shoal Block 278 at a rate of 6 MMcfd of gas. Spirit Energy Partners LP, a business unit of Unocal Corp., operates the block with a 75% working interest. Magnum Hunter holds the remaining 25%.

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