Another company operating in the Utica Shale formation has decided to put its land on the market.
Magnum Hunter Resources Corp. announced on Tuesday that it will be selling 5,210 acres of undeveloped land located in Tyler County, West Virginia. The company’s CEO Gary Evans explained that the acreage is not in the company’s long-term drilling plans and that several of the leases will be expiring soon. Therefore, selling the land to a competitor that already has adjacent leases was logical.
As reported by the Columbus Business First, “Magnum Hunter said earlier this month that it’s looking to sell $450 million worth of its Ohio acreage as part of efforts to improve its liquidity.” In total, Magnum Hunter owns about 210,000 acres in the Utica Shale formation. The acreage is located in eastern Ohio and West Virginia.
Last year, Magnum Hunter’s Stewart Winland pad in Tyler County recorded the highest natural gas production numbers in the Utica. However, even though Tyler County has been good to the company, selling the assets is still in the company’s best interests.