Magnum Hunter boosts spending

Petroleum News

Exploration and production independent Magnum Hunter Resources has increased its capital spending budget by $50 million to $165 million, the company said Sept. 30.

Nearly all of the increase will go to drilling in the Gulf of Mexico “to take full advantage of the higher commodity price environment along with historically low field service costs,” the company said. Magnum Hunter is paying for its 2003 capital budget through cash flow from operations and proceeds from non-strategic asset sales.

The company said $112 million of the 2003 budget is earmarked for the Gulf of Mexico, followed by $36 million for the Permian Basin, $11 million for the Midcontinent, and $6 million for onshore Gulf Coast. Magnum Hunter has budgeted to participate in the drilling of about 144 new wells during 2003, including 38 wells offshore in shallow waters of the Gulf and 106 wells onshore, primarily in southeastern New Mexico, West Texas, and the Texas Panhandle.