Magnum Hunter Logs Pay with Two Gulf of Mexico Wells
Magnum Hunter Resources has participated in two new field discoveries in the Gulf of Mexico. The Company estimates that when these new discoveries are placed on production, the combined initial daily rates should be approximately 30 million cubic feet of equivalent ("MMcfe") production (gross) or 6.5 MMcfe net to Magnum Hunter.
The West Cameron 416 #1 discovery well encountered a single gas sand with approximately 60 feet of net pay; the well was tested at daily production rates of 14 MMcfe. This well will be tied back to the partners' existing West Cameron 417 production facility which was brought on line in June 2002. Magnum Hunter owns a 25% working interest in the West Cameron 416 lease block. Remington Oil and Gas Corporation is the operator with a 50% working interest. The anticipated date of first production is scheduled sometime in the second quarter of 2003.
The South Marsh Island 24 #2 discovery is in the process of being completed in a single sand with 52 feet of net pay in an interval above 16,970'. This deep shelf discovery qualifies for royalty relief with the Minerals Management Service on the first 20 Bcfe of natural gas produced. Magnum Hunter owns a 30% working interest and Remington Oil and Gas Corporation is the operator with a 45% working interest. The anticipated date of first production is scheduled sometime in the second quarter of 2003.