Magnum Hunter Resources – a Dallas, Texas based independent exploration and production company – announced yesterday that its subsidiary; Triad Hunter, LLC, has agreed to sell certain leasehold acreage located in Tyler County, West Virginia, to an unnamed, independent exploration and production company. The divested assets were described by the company as “non-core, undeveloped, and unproven”.
In a statement issued yesterday, Magnum Hunter anticipates that the net proceeds it will receive from the sale will be approximately $40.8 million after taking into account the adjustments related to the primary terms of the underlying leases and lease extension costs, but exclusive of adjustments for any title defects.
Mr. Gary C. Evans, Chairman of the Board and Chief Executive Officer of Magnum Hunter, commented, “The undeveloped properties to be sold pursuant to the agreement announced today are deemed non-core to Magnum Hunter and were not in our long-term drilling plan for this immediate area.”
“Additionally, with lease expirations on the horizon on a large portion of this acreage position, it made sense to sell these properties now to an industry competitor that already owns adjacent leases. This sale represents less than 2 1/2% of our approximate 210,000 net leasehold acreage position in the Marcellus and Utica Shale plays,” he concluded.
The sale is scheduled to close on May 28, 2015 and is subject to customary closing conditions. The properties to be sold consist of ownership interests in approximately 5,210 net leasehold acres.
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