Magnum Hunter Resources Corp., Houston, said its Triad Hunter LLC subsidiary formed a joint venture with Eclipse Resources I LP, private State College, Pa., operator, to drill 12 Marcellus shale and 12 Utica shale horizontal wells in 3 years in Monroe County, Ohio.
Working together on 1,950 net mineral acres, Triad as operator and Eclipse expect to lay out combined capital costs of more than $200 million on the program. Each company will own a 47% working interest. Private parties hold the rest.
Eclipse has agreed to commit its share of production from the contract area to a new pipeline system under construction by Magnum Hunter’s Eureka Hunter Pipeline LLC subsidiary.
Magnum Hunter said its geological interpretation of the area indicates the potential to yield not only high volume wells in the Utica shale and that the area is located in the liquids-rich regime of the Marcellus shale. Triad Hunter has drilled two successful Marcellus wells adjacent to the properties.
Treacherous terrain in the area points to a need to minimize the collective footprint by forming partnerships to maximize drainage of the leasehold position, Magnum Hunter said.
