Marcellus / Shale Daily / NGI The Weekly Gas Market Report / Northeast / NGI All News Access

Magnum Shakes Off Cold, Increases Appalachian Gathering System Flows

Just weeks after Magnum Hunter Resources Corp. said inclement weather and heavy liquids volume had combined with a rush of infrastructure buildout in the Appalachian Basin to delay production at some of its Marcellus wells in southeast Ohio, the company said Tuesday that throughput volumes on its gas gathering system there have increased by roughly 35% since January 2012.

Magnum subsidiary Eureka Hunter Pipeline LLC said volumes on its Eureka Hunter Pipeline System went from 122,950 MMBtu/d a year ago, to 166,500 MMBtu/d this month. Higher Marcellus volumes on the system from wells in both West Virginia and Ohio are expected to increase as the year goes on with more dry in the Utica/Pt. Pleasant formation scheduled.

Magnum has a big focus in the basin this year, with plans to spend more than half of its $400 million capital expenditures budget in Ohio and West Virginia (see Shale DailyDec. 12, 2013) and other efforts to sell noncore assets so it can focus its attention on Utica and Marcellus production.

Eureka said approximately 45% of the 166,500 MMBtu/d flowing through its gathering system came from Magnum's production affiliate Triad Hunter LLC. Tuesday's announcement came just weeks after Magnum provided a production update in which it said cold winter weather throughout the region caused "significant liquids fallout," high pipeline pressures and liquids handling issues (see Shale Daily, Dec. 20, 2013).

At the time, although financial analysts were somewhat concerned, solid initial test results at some of Magnum's wells in the area helped to head-off any pessimism about any delays caused by weather issues. Eureka has been working quickly to update, install and tie gathering lines into its wet gas pipeline system in Tyler and Wetzel counties, WV. Magnum said Tuesday it expects Eureka to flow an additional 40,000 MMbtu/d through the system in the next three to six weeks with wells in Wetzel County, WV, and Monroe County, OH, expected to come online in that time.

It also said more third-party volumes are expected this year.

ISSN © 2577-9877 | ISSN © 1532-1266 | ISSN © 2158-8023

Recent Articles by Jamison Cocklin

Comments powered by Disqus