Magnum Hunter Announces 50/50 Joint Venture With El Paso Production Company

Magnum Hunter Resources, Inc. ("Magnum Hunter") (Amex: MHR) announced today that it has entered into a 50/50 Joint Venture exploration, development, and recompletion project on South Timbalier ("ST") Blocks 264, 265 and 266 with El Paso Production Company, a unit of El Paso Energy Corporation (NYSE: EPG). The project includes one producing gas well and three existing wells scheduled for completion, including the recent discovery on ST Block 265 and a 1999 discovery on ST Block 264. An additional six to eight exploration, development, and recompletion opportunities have been identified on ST Blocks 264, 265, and 266 on which activity has already commenced.

Magnum Hunter has entered into a "Like Kind" exchange with El Paso whereby Magnum Hunter has exchanged a 50% ownership interest in ST Blocks 265 and 266, including existing production facilities owned by Magnum Hunter on ST Block 265, for a 25% ownership interest in ST Block 264, additional cash consideration and other drilling commitments. Magnum Hunter already held a 25% ownership interest in the 1999 discovery on ST Block 264. El Paso will operate the drilling phase of the program under the new Joint Venture and Magnum Hunter will operate all of the production and related facilities. Under terms of the Joint Venture, each company will have an equal 50% ownership in ST Blocks 264, 265 and 266; excluding ST Block 265 well A-4 where El Paso holds a 60% working interest and Magnum Hunter holds a 40% working interest.

On ST Block 265, a discovery well was recently drilled nearby the existing production platform and is currently being completed from a 60 foot gas bearing sand. The drilling rig will remain on location to sidetrack an existing well with high production potential.

Commenting on this new partner and these recent activities, Mr. Matthew C. Lutz, Chairman and Executive Vice President, stated, "Magnum Hunter is very excited about the impact of drilling in the South Timbalier area of the Gulf of Mexico, where the Company now has a significant 50% ownership interest in four Blocks and is operator of the central production facilities on ST Block 265. Discoveries to date on ST Blocks 250, 264 and 265 are expected to increase gross production in this area from 8 Mmcfed to approximately 20 Mmcfed by the end of this month and to approximately 50 Mmcfed upon completion of other wells in early 2001. The Joint Venture drilling program with our new co-owner, El Paso, has the potential to add significant new reserves and production to Magnum Hunter." The information in this release includes certain forward-looking statements that are based on assumptions that in the future may prove not to have been accurate. Those statements, and Magnum Hunter Resources, Inc.'s business and prospects, are subject to a number of risks, including volatility of oil and gas prices, the need to develop and replace reserves, the substantial capital expenditures required to fund its operations, environmental risks, drilling and operating risks, risks related to exploration and development drilling, uncertainties about estimates of reserves, competition, government regulation, and the ability of the company to implement its business strategy. These and other risks are described in the company's reports that are available from the SEC.

For Further Information Contact: Michael P. McInerney,
Investor Relations (972) 401-0752


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