Magnum Hunter Announces Test Results from Main Pass
Magnum Hunter Resources, Inc. announced significant test results on its 100% owned and operated Main Pass Blocks 164 and 178 in the Gulf of Mexico. The two adjacent Main Pass Blocks are approximately 95 miles east of New Orleans, in water depths of approximately 150 feet. Three wells have recently been completed and tested at an aggregate rate of over 20 million cubic feet of natural gas equivalents per day (MMcfed). Completion of a fourth well and final connections to a recently installed pipeline and production facilities are currently in progress. Initial production from these new wells is currently scheduled for late November 2001, based upon normal weather conditions in the Gulf of Mexico.
Commenting on these new discoveries, Mr. Chuck Erwin, Senior Vice President of Exploration, stated, "Test results from the Main Pass project have exceeded our prior expectations when these Blocks were acquired from UPR several years ago. With the recent drilling and completion results achieved on our wells at Main Pass Blocks 164 and 178, along with the purchase of four nearby blocks acquired in the MMS lease sale earlier this year, we have now established a second Company operated core area in the Gulf of Mexico. Our geological and geophysical interpretations of these OCS Blocks indicate numerous exploration and development drilling opportunities. If actual production approaches the test rates, and the fourth well currently drilling proves successful, the combination of these new wells from the Main Pass Blocks would represent approximately 20% of Magnum Hunter's current net production. The first Company operated core area in the Gulf of Mexico established earlier this year is the South Timbalier 265 complex. The seven wells currently producing at the ST 265 have gross daily volumes of 38 MMcfed, or 21 MMcfed net to Magnum Hunter."