Magnum Hunter closes $40M acquisition of properties in Texas’ Permian basin

Ray Tyson

Exploration and production independent Magnum Hunter Resources said Nov. 2 that it has completed the previously announced $40 million acquisition of oil and gas properties in the Permian basin of West Texas from an undisclosed privately held company. Magnum Hunter said it financed the acquisition through borrowings under its recently increased $525 million senior bank credit facility.

The company estimated that the properties acquired represent about 51 billion cubic feet of gas equivalent proved reserves, consisting of 59 percent natural gas. The properties include 100 proved undeveloped locations in the Canyon, Clearfork, Spraberry and Wolfcamp formations.

Magnum Hunter acquired 170 producing wells that are 100 percent operated and currently produce about 3.4 million cubic feet of gas equivalent per day.