Irving

Magnum Hunter Resources Inc. and its partners are ramping up more production from their Gulf of Mexico (GOM) leases, which is helping the Irving, TX-based independent continue a string of offshore success that overall will yield an additional 20 MMcfe of new net daily production beginning in the fourth quarter.

Magnum Hunter Resources Inc. and its partners are ramping up more production from their Gulf of Mexico (GOM) leases, which is helping the Irving, TX-based independent continue a string of offshore success that overall will yield an additional 20 MMcfe of new net daily production beginning in the fourth quarter.

Irving, TX-based Magnum Hunter Resources Inc. estimated last week that it will lose about 4 Bcfe of production in the second half of the year from a combination of property divestitures and storm related shut-ins. The company said total production for the month of August 2002 averaged 228.2 MMcfe/d.

Irving, TX-based Magnum Hunter Resources Inc. estimated Tuesday that it will lose about 4 Bcfe of production in the second half of the year from a combination of property divestitures and storm related shut-ins. The company said total production for the month of August 2002 averaged 228.2 MMcfe/d.

Irving, TX-based Magnum Hunter Resources Inc. is participating in seven new oil and gas discoveries on the Outer Continental Shelf (OCS) of the Gulf of Mexico. The company estimates that initial production rates from these discoveries should be approximately 30 MMcfe/d net when production begins. Magnum Hunter’s current production from the Gulf is approximately 53 MMcfe/d. Once the company completes some onshore divestitures of non-core assets, total company-wide production (including onshore) will be about 210 MMcfe/d. The discoveries include South Timbalier 264, with estimated first production in the third quarter. First production is expected to begin early next year for three other discoveries, West Cameron 347 and 426 and East Cameron 377. Those starting up in mid-2003 are Eugene Island 299 and 355. Eight prospects currently drilling or scheduled to spud by year-end have potential reserves of more than 550 Bcfe gross, or approximately 60 Bcfe net to Magnum Hunter. Since initiating an exploration program in the Gulf in May 1999, Magnum Hunter has developed an inventory of 135 OCS Blocks (634,000 gross acres) and has maintained an 86% drilling success rate with 45 out of 52 wells drilled to date.

Denver-based Mallon Resources Corp. has completed the sale of its Delaware Basin oil and gas properties to Irving, TX-based Magnum Hunter Resources Inc. Mallon said the sale included its interest in 23 fields, consisting of interests in 141 producing wells and 13,742 net mineral acres. Magnum Hunter entered into a purchase and sale agreement with Mallon in mid-August for the acquisition of Mallon’s Delaware Basin oil and natural gas reserves and related assets located in Eddy and Lee counties of southeast New Mexico (see Daily GPI, Aug. 14).

Irving, TX-based Magnum Hunter Resources Inc. has completed tests results from two wells at its South Timbalier (ST) 264 platform. The ST 264 A No. 1 well was perforated from 8, 190 feet to 8,224 feet, gravel packed, and tested at rates exceeding 1,000 bbl/d and 2 MMcf/d. The well tested on a 18/64-inch choke with 3,152 psi flowing tubing pressure. The second well, ST 264 A No. 2, was completed from 8,116 feet to 8,174 feet and tested at 2.8 MMcf/d and 200 bbl/d. Flowing tubing pressure was 4,190 psi on a 10/64-inch choke. Magnum Hunter owns 100% working interest in these wells and the associated lease block. Production sales have now begun on ST 264 A No. 2 well and production sales should begin by the end of July on ST 264 A No. 1 well.

Magnum Hunter Resources Inc., headquartered in Irving, TX, as begun production from one new well drilled at South Timbalier Block 264 in the offshore Gulf of Mexico at a rate of 6.5 MMcf/d and 185 bbl/d. The well, operated by Magnum Hunter, was drilled to a depth of 7,494 feet and logged 80 feet of gross gas pay. Two other wells are in the process of being completed on the newly installed four-slot platform, and additional development is planned later this year, with a second platform also being considered. Production is connected to Magnum Hunter’s 50% owned and operated Block 265 main processing platform, which also processes gas from the company’s 50% owned Block 250. The combined gross production at this facility is now approximately 28 MMcf/d and 500 bbl/d.

Pioneer Natural Resources announced the closing of a number ofasset and property sales yesterday totaling $286 million. TheIrving, TX-based exploration and production company said $256million of the total will be used to reduce outstanding bank debt.