Magnum Hunter Finalizes Utica Shale Acquisition
Magnum Hunter Resources Corporation announced that its wholly-owned subsidiary, Triad Hunter, LLC ("Triad Hunter"), has closed on the acquisition of leasehold mineral interests located predominately in Noble County, Ohio (the "Utica Acreage") from an undisclosed seller for a total purchase price of $24.8 million.
The Utica Acreage consists of approximately 15,558 gross (12,186 net) acres predominately located in Noble County, Ohio. The net price paid per acre for this acquisition was $2,037. The majority of the leasehold acreage acquired in this transaction is held by shallower production. The purchase includes all depths of 300 feet below the top of the Queenston Formation down to all further depths. There is no associated shallow production included with this acquisition. There is a possibility of a second closing on another block of similar acreage that may occur on or before April 16, 2012, assuming the Seller can satisfy certain title deficiency requirements.
The Utica Acreage is in close proximity to Triad Hunter's existing acreage position in Washington and Noble Counties, Ohio, and now provides Triad Hunter approximately 18,187 gross (14,815 net) acres in in these two counties, and a total of 23,214 gross (17,316 net) acres that are presently prospective for the Utica Shale.
Mr. Gary C. Evans, Chairman and Chief Executive Officer of Magnum Hunter, commented, "This acquisition represents another 'bolt-on' transaction in one of Magnum Hunter's core unconventional resource plays. It is truly a win-win acquisition because it not only significantly expands our existing acreage position in a strategic region in Ohio at a very attractive price per acre, but also now provides the expansion opportunity for our midstream business, Eureka Hunter Pipeline, to immediately begin construction work into a region presently not served by other competitors, yet greatly controlled now by our upstream Appalachian Division. Given that nearly all the acreage is held by shallow production, this provides the Company maximum flexibility in the development of the land."
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