Last Thursday, 6/16/2011, the CEO of Magnum Hunter Resources presented at the EnerCom London Oil and Gas Conference. He went over all aspects of the company, including some interesting new details and opinions on the Eagle Ford. First, some funny quotes: “We are a mini-me of EOG”, leasing was driven by “close-olgy, not geology.” The CEO was driving home the fact that the Magnum Hunter acreage is right next to the EOG acreage, and it borders the newly acquired Marathon acreage. In fact, some of their acreage lies in an AMI with EOG and I presume that EOG will be operating this land. The AMI consists of over 2,000 gross acres. Below is a map from an older presentation showing their “close-ology”.
A few other notes:
– According to Magnum Hunter, EOG just drilled a 4,000 BOPD well. It was in a transistion zone between the Eagle Ford and Buda. I find this to be interesting. Just downdip of the EOG and Magnum Hunter acreage lies the Sugarkane wells. These wells produce from a transistion zone between the Eagle Ford and Austin Chalk. The Austin Chalk bounds the top of the Eagle Ford, while the Buda bounds the lower Eagle Ford. It seems that in many of the unconventional plays, these transistion zones yield some of the best results. You see this in Niobrara as well where some operators are targeting the ‘chalky’ areas of the different benches. This well was an acid frac.
– Magnum Hunter is currently drilling a 6,000′ lateral with a 20 stage frac job.
– One year ago, Magnum Hunter quoted 300 MBOE, today they quote 500 MBOE, and the CEO predicted in the future they will be quoting 750 MBOE. In fact, he said that he fully expects to see 1 MMBOE wells in the Eagle Ford. How much of this is hype, we’ll have to see.
– Oh, and obviously he very much liked the Hilcorp acquisition at $25k/acre, and why wouldn’t he, this borders his acreage and puts a high valuation on it.
– Well head gas is 1400 BTU, although not very much of it, Magnum Hunter sits in the crude oil window.
This was some good stuff coming out of the Magnum Hunter presentation. We will wait to see if the 4,000 BOPD IP is backed up by our data or by EOG themselves. Keep checking back.
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