ONEOK to buy Magnum Hunter Stock(MHR) Private placement of $50 million convertable to $5.25 a share. The agreements will allow Oneok,Inc. to market MGRs gas production and participate in MHRs future acquisitions. (Source The Daily Oklahoman, Feb. 4, 1999.)
NEWS
Significant Gas Discovery
IRVING, Texas, Jan. 13 /PRNewswire/ -- Magnum Hunter Resources, Inc.
(Amex: MHR) ("Magnum Hunter") announced today test results on a significant
confirmation well and extension of its Mossy Grove natural gas discovery
120 miles north of Houston, in Walker County, Texas. The Wash McAdams #2-H
well was placed on production at the rate of 7.5 million cubic feet of gas and
100 barrels of condensate per day through a 21/64 inch choke with flowing
tubing pressure of 3900 psi. The well has tested at rates over 10 million
cubic feet of gas per day and is currently restricted due to the maximum
operating capacity of surface production equipment. The calculated absolute
open flow rate (CAOF) of this new well is 65 million cubic feet of gas per
day.
Production is from two horizontal segments which connect 11,000 feet of
the productive Glen Rose formation to the vertical borehole. A dual
production string was run in the new well in preparation to test significant
shows also encountered in the shallower Edwards formation in the vertical
segment of the well. A successful completion in the Edwards formation would
establish a new field pay. The testing of this secondary objective should be
completed within the next two weeks. The field discovery well, the Wash
McAdams #3H, was completed in August 1998 and has produced over 500 million
cubic feet of gas and 5,000 barrels of condensate to-date.
The Company owns a 55% working interest in the Wash McAdams #2H
confirmation well which is completed as a dual horizontal well ("turnazontal")
at a vertical depth of approximately 12,100 feet in the Glen Rose formation.
Magnum Hunter and its partners have formed an Area of Mutual Interest (AMI)
and currently hold over 43,000 mineral acres under lease within the AMI in
which Magnum Hunter owns approximately 25%.
Mr. Matthew C. Lutz, Chairman and Executive Vice President of Exploration
and Business Development, stated, "Our second well on this prospect now
extends the field approximately 3 1/2 miles to the southwest where formation
pressure is substantially higher than in the discovery well, indicating no
reservoir drainage. The validity of the geological concept is substantially
bolstered by these well results and is expected to support an active drilling
program to develop this potentially major gas field. This new well and
subsequent development wells have the potential to significantly improve both
Magnum Hunter's proved reserves and current operating cash flow. Ten to
twenty additional wells could be drilled depending upon ongoing results in
both the primary and secondary objectives."
Magnum Hunter Resources, Inc. is one of the nation's fastest growing
independent exploration and development companies engaged in three principal
activities: (1) the acquisition, production and sale of crude oil, condensate
and natural gas; (2) the gathering, transmission and marketing of natural gas;
and (3) the managing and operating of producing oil and natural gas properties
for interest owners.
The information in this release includes certain forward-looking
statements that are based on assumptions that in the future may prove not to
have been accurate. Those statements, and Magnum Hunter Resources, Inc.'s
business and prospects, are subject to a number of risks, including volatility
of oil and gas prices, the need to develop and replace reserves, the
substantial capital expenditures required to fund its operations,
environmental risks, drilling and operating risks, risks related to
exploration and development drilling, uncertainties about estimates of
reserves, competition, government regulation, and the ability of the company
to implement its business strategy. These and other risks are described in
the company's reports that are available from the SEC.
FOR FURTHER INFORMATION CONTACT: MICHAEL P. MCINERNEY,
INVESTOR RELATIONS (972) 401-0752.
SOURCE Magnum Hunter Resources, Inc.
-0- 01/13/99
/CONTACT: Michael P. McInerney, Investor Relations of Magnum Hunter
Resources, Inc., 972-401-0752/
/Web site: magnumhunter.com
(MHR)
CO: Magnum Hunter Resources, Inc.
ST: Texas
Regards,
Santiago |
