Magnum Hunter increases 2003 capital spending to $115 million; $14 million goes to GOM

Petroleum News Houston staff

Texas-based independent Magnum Hunter Resources said July 1 that its board of directors has approved an increase in the company's capital expenditure plan for fiscal year 2003 by $15 million, from $100 to $115 million.

About $14 million of the increase will be directed to the company’s Gulf of Mexico activities, Magnum Hunter said. The company was high bidder on 38 blocks at the March 2003 Central Gulf oil and gas lease sale, spending about $9.5 million.

Additionally, Magnum Hunter and its industry partners continue to increase their drilling activities in the gulf area this year “in an effort to take full advantage of the current higher commodity price environment along with lower field service costs,” the company said.

The increase in capital spending will be financed from Magnum Hunter's discretionary cash flow, the company said. For calendar 2003, the $115 million capital expenditure budget has been front-end loaded with about 68 percent of total capital expenditures spent during the first half of the year.