An Eagle Ford Shale activity update by Magnum Hunter Resources Corp. is marked with improved initial production rates driven by longer lateral lengths and greater frac stages.
The activity, in the oil-window of the unconventional resource play, is located across approximately 51,664 gross mineral acres predominately located in Gonzales and Lavaca Counties of South Texas.
The Furrh #2H–drilled to a measured depth of 15,876 feet (horizontal lateral length of 5,945 feet), was fractured with 20 stages and placed on production November 15. The 24 hour flowing initial production rate (IP) was 1,270 boepd on a 19/64” choke with 1,680 psi FCP. Magnum Hunter operates the Furhh #2H and owns a 42.1% net working interest.
The Kudu Hunter #1H was drilled and cased to a measured depth of 16,302 feet (horizontal lateral length of 5,751 feet), was fractured with 20 stages in mid-November. The 24 hour IP rate was 1,590 boepd on a 22/64” choke with 2,200 psi FCP. Magnum Hunter operates the Kudu Hunter #1H and owns a 46.3% net working interest.
These two new completions came online at an average rate of 1,430 boe/d, roughly 33% higher than the previous nine Gonzales/Lavaca County Eagle Ford wells, said Jefferies & Co. Inc. analysts in a December 1 note to investors.
The Snipe Hunter #1H and Leopard Hunter #1H wells (50% working interest each) are located in Lavaca County, Texas and are both currently drilling. Each of these wells will have an approximate 25 stage frac job beginning in mid-December. Eagle Ford Hunter has an additional two gross wells (1.0 net wells) planned for spudding before year-end 2011.
Frac timing of the Hawg Hunter #1H (25% WI) was not disclosed.
The company anticipates having a total of an additional 2 gross wells (1 net well) on production and flowing to sales on or before December 31, 2011. A new gas gathering system went operational in June with all of Magnum Hunter’s existing wells connected and selling wet gas into this new gas gathering system.
H.C. “Kip” Ferguson, president of Eagle Ford Hunter LLC, commented, “The respective IP rates in excess of 1,200 boepd are representative of the continued success we are having as a result of our increasing knowledge, improved fracing techniques in combination with longer laterals and more frac stages per lateral.”
Gary C. Evans, chairman of the board and CEO of Magnum Hunter Resources stated, “As of November 30th, Magnum Hunter’s total company wide production level is approximately 9,500 boe per day. Our previously stated production exit rate goal for year-end 2011 of 10,000 boepd appears to be on track and within budget.”
The company appears to be on the right track. “MHR continues to push the Eagle Ford completion design envelope with three impending 7,000 ft lateral, 25+ stage completions. Outsized production growth appears on track with current volumes at 95% of '11 exit-rate guidance,” noted the analysts.
