Magnum Hunter Resources Corp., Dallas said its wholly owned subsidiary Triad Hunter LLC has signed a definitive agreement to sell certain noncore undeveloped Utica leasehold acreage in West Virginia for $40.8 million to an undisclosed independent producer.
The assets involve 5,210 net acres in Tyler County, W.Va. The transaction was scheduled to close May 28, subject to customary closing conditions.
Gary C. Evans, Magnum Hunter chairman and chief executive officer, said May 26 that the properties were not in Magnum Hunter’s long-term drilling plan. The sale represented less than 3% of Magnum Hunter’s total 210,000 net acres in leases in the Marcellus and Utica.
“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,” Evans said.