Magnum Hunter Resources (MHR) completed the sale of 19,000 net acres in the Eagle Ford to Penn Virginia for approximately $400 million in the second quarter. The deal was for the majority of the company's Eagle Ford holdings.
Magnum Hunter retained approximately 7,000 net acres prospective for the Eagle Ford and Pearsall Shale formations in Atascosa, Fayette, and Lee counties. Two wells were completed and the company plans to explore and develop its acreage further.
MHR drilled one operated Eagle Ford well and participated in one non-operated Pearsall well during the quarter:
- Peeler Ranch #4H - is operated by MHR and was drilled to a total measured depth of 15,206 feet (horizontal lateral length of 5,714 feet) and is currently waiting to be completed. Magnum Hunter owns a 98.4% working interest in the well and is the operator.
- McCarty Unit A 1H is operated by Marathon Oil and was drilled to a measured depth of 17,438 feet (horizontal lateral length of 6,368 feet), fraced with 17 stages in the Pearsall Shale. The well produced 584 boepd on an 18/64th adjustable choke with 2,185 psi FTP. Magnum Hunter owns a 31% working interest in the well.
H.C. "Kip" Ferguson, President, commented, "This combo Pearsall/Eagle Ford area has always been of interest to our team. The right depth, gas-to-oil ratio, and completion style will be required to optimize the potential for these formations. The Pearsall Shale is different in composition to the Eagle Ford Shale. It is composed of more silica with interbedded organic shale and limestone. We believe that our Pearsall Shale acreage is located within the wet gas to rich condensate window of the play, which is ideally located between the Charlotte fault trend eight miles to the north and the Karnes fault trend to the south. Our internal technical analysis, core samples, our McCarty Unit A 1H well, and recent third-party well results in the area, indicate potential for both Eagle Ford Shale and Pearsall Shale productivity on this Atascosa County acreage.