Magnum Hunter Resources Announces New Shale Play Entry
Magnum Hunter Resources Corporation (NYSE: MHR) announced today that the Company has closed on the acquisition of 1,885 net mineral acres located in Atascosa County, Texas for approximately $2.35 million, implying a net per acre cost of $1,246. With this acquisition, the Company now has approximately 7,278 gross acres and 5,212 net acres located in Atascosa County, Texas.
The acquired acreage has both Eagle Ford Shale and Pearsall Shale potential and gives the Company approximately 10 additional net drilling locations in the Pearsall Shale and 10 - 13 additional net drilling locations in the Eagle Ford Shale. This now gives the Company approximately 40 net Pearsall locations assuming 750' spacing within its Atascosa core area. The Company spud its first well on the acquired acreage on August 4, 2012 and will drill vertically to the run logs and cores for a full formation evaluation on the Pearsall Shale. This well will then be drilled horizontally and completed in the Eagle Ford Shale.
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