Magnum Hunter Resources Corp. posted a 51% increase in estimated total proved reserves as of June 30 compared to the year-ago period, the shale-focused producer said.
Total proved reserves increased by 22.8 million boe to 67.7 million boe [64% crude oil and natural gas liquids (NGL); 39% proved developed producing] as of June 30, compared to 44.9 million boe (48% crude oil and NGLs; 51% proved developed producing) at December 31, 2011. The increase was driven primarily through organic growth and extensions (14.7 million boe), a recent Bakken Shale acquisition (8.7 million boe) (see Shale Daily, April 19) and the company’s Eagle Operating Inc. acquisition (2.2 million boe), which closed in April.
“Management is marching forward in achieving our near-term goal of 100 million bbl of total proven reserves for the benefit of our shareholders,” said CEO Gary Evans. “The Williston Basin division, due to recent acquisition efforts and continued drilling success, now represents 40% of our total proved reserves, and crude oil has increased to 64% of our total proved reserve commodity mix.
“We believe the greater diversity of product type in our total proved reserves is especially prudent in today’s volatile commodity markets. The resource potential of our leasehold mineral acreage position is now almost 10 times our proven reserves. As we continue to develop the company’s four shale plays [Marcellus, Utica, Bakken/Three Forks and Eagle Ford], the ability to book this significant potential upside resource as new proven reserves will accelerate.”
According to the company, it holds 65 million boe of unrisked net reserves in the Eagle Ford, 252 million boe in the Bakken/Three Forks/Sanish, 243 million boe in the Marcellus and 45 million boe in the Devonian Shale for a total of 605 million boe.
© 2022 Natural Gas Intelligence. All rights reserved.
ISSN © 2577-9877 | ISSN © 2158-8023 |