Magnum Hunter Resources has entered into a joint development and joint operating deal with Stone Energy, covering an existing mineral leasehold position owned by both companies in the US state of West Virginia.
Triad Hunter, a unit of Magnum Hunter, and Stone Energy will work together within the contract area in Wetzel County on an equal and joint basis, on about 1,925 acres.
The companies aim to drill 19 new horizontal wells in the Marcellus Shale area over the next two years.
Triad Hunter and Stone Energy intend to drill and complete the first 11 wells in 2012 at an estimated capital cost of $47m.
Two horizontal Marcellus wells were also drilled and completed earlier in 2011 by the companies on a portion of this existing mineral leasehold.
The total capital costs associated with the contract area for the new joint agreements will exceed approximately $100m.
The additional 1,925 acre area is part of a 5,288 acre leasehold in which Triad Hunter will retain 100% stake over 2,979 acres.
The Magnum Hunter subsidiary is also planning to drill an additional nine wells with 100% interest in the site.
US-based Magnum Hunter is engaged in the acquisition, development and production of oil and gas, primarily in West Virginia, Kentucky, Ohio, Texas and North Dakota, as well as in Saskatchewan, Canada.
