Magnum Hunter's Daily Production Rate Up 455%
Magnum Hunter Resources Corporation announced Tuesday that it has raised the Company's production guidance for 2011 and 2012 due to higher production levels being experienced from new well completions.
The Company's three operating divisions are currently producing at a combined production base in excess of 12,500 Boe per day, significantly above previous company guidance of 10,000 Boe per day as a projected 2011 exit rate. This represents a 455 percent increase from our daily production rate of 2,750 Boe per day at the beginning of this year.
Magnum Hunter also raised production guidance for calendar 2012 with a projected exit rate of 14,500 Boe per day from its previous guidance of 13,000 Boe per day. All of this production growth is anticipated from new drilling of existing mineral leases and do not include any potential acquisitions.
"We are very fortunate to have three resource plays within our portfolio that are now 'hitting on all cylinders' and providing an increase in our overall production levels well above expectations," said Gary C. Evans, Chairman and Chief Executive Officer of Magnum Hunter. "This is especially rewarding when our management team has been able to achieve these milestones while also staying within our original capital budget plan."
Shares were up 6.9 percent to $4.99 following the announcement. Like its fellow energy companies, Magnum is benefiting from a boom in North American drilling activity as companies clamor to develop low-cost natural gas obtained from shale.
Magnum is presently active in three of the most active shale resource plays in North America -- the Marcellus Shale, Eagle Ford Shale and Williston Basin/Bakken Shale.
Dow Jones Newswires' Mia Lamar contributed to this report.
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