Magnum Hunter Brings Several Gulf of Mexico Wells Onstream
Magnum Hunter says that production has recently commenced on several Gulf of Mexico wells that were drilled earlier in 2003. At South Marsh Island 24, production from a deep shelf well was initiated in May 2003 at 23 MMcfed. Magnum Hunter owns a 36% working interest in this lease block. At East Cameron 344, a sidetrack of the #A-2 well began gross production in early June at 7.5 MMcfed. Magnum Hunter owns a 25% working interest in the well. Additionally, at Eugene Island 397, the #A-8 well is being completed and the #A-9 well has been proposed. Magnum Hunter owns a 12.5% working interest in the Eugene Island 397 field.
Magnum Hunter has drilled two dry holes thus far in the second quarter of 2003. The South Timbalier109 and West Cameron 253 prospects, 30% ownership and 40% ownership, respectively, did not find sufficient reserves to justify completion.
Commenting on the Company's recent activities in the Gulf of Mexico, Mr. Charles R. (Chuck) Erwin, Senior Vice President of Exploration for Magnum Hunter stated, "Our Company's daily oil and gas production from the Gulf of Mexico continues to increase each quarter with production now averaging 55 million cubic feet equivalent per day. Our ability to 'fast track' some of our 2003 discoveries in order that we can benefit immediately from current high commodity prices, should bode well for our second half 2003 income estimates. With drilling rig and service costs remaining at unusually low levels in relation to current commodity prices, the Gulf of Mexico will capture a minimum of $60 million or 60% of our Company's 2003 capital budget. Magnum Hunter will be participating in an additional seven wells in the Gulf of Mexico prior to year-end".
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