Magnum Hunter to Spend $75 Million in 2002
Magnum Hunter Resources, Inc. announced that its Board of Directors has approved a capital investment program of approximately $75 million for calendar year 2002. The spending will be funded from Magnum Hunter's discretionary cash flow based on expected commodity prices received during the year, and is subject to change if market conditions shift or new opportunities are identified.
The Company has budgeted to participate in the drilling of 60 new wells during 2002, including 22 wells to be drilled offshore in the shallow waters of the Gulf of Mexico and 38 wells to be drilled onshore, primarily in southeastern New Mexico, west Texas, and western Oklahoma. Six of the planned 22 Gulf of Mexico wells are exploratory and all of the onshore wells are deemed developmental.
Commenting on the 2002 capital expenditure budget, Mr. Gary C. Evans, Chairman, President and CEO of Magnum Hunter stated, "The Board of Directors have lowered the capital expenditure budget for 2002 as compared to 2001 to coincide with anticipated cash flows due to lower commodity prices. A large amount of the estimated $155 million capital investment program spent during 2001 was for construction and installation of production facilities in the Gulf of Mexico, which will result in another 35%+ increase in company wide oil and gas production during 2002. Our management team will strive to continue our high drilling success rate of 95% achieved year-to-date for 2001 with a total of 92 out of 97 wells deemed commercially successful."