Magnum Hunter Resources Corp. announced that the company has signed an agreement with a private exploration and production company to jointly develop acreage in Texas that is prospective for oil and gas. This is the second joint venture entered into by the company.
Magnum Hunter Resources Corp. would not identify the other party in the agreement. The acreage is located in Gonzales and Lavaca Counties, and is prospective for several oil and gas bearing formations, including the Eagle Ford Shale.
Magnum Hunter Resources Corp. said that agreement sets up an Area of Mutual Interest in these two counties within which the joint venture will control all leasing, exploration, development and other activities. The effective date of the agreement will be retroactive to October 1, 2010.
Each party to the agreement will contribute approximately 1,500 acres to the joint venture. Magnum Hunter Resources Corp. and the other party are required under the agreement to jointly drill a minimum of two horizontal wells.
Magnum Hunter Resources Corp. said that the Southern Hunter, the first well under the agreement, will start drilling within two weeks, and would target the Eagle Ford Shale. The second well would be spud within ninety days of the completion of the Southern Hunter.
For more information on the company, go to www.magnumhunterresources.com
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