Triad Hunter, a unit of Magnum Hunter Resources, has acquired leasehold mineral interests in the Utica Shale in Ohio, US, for $24.8m.
The acquisition includes approximately 15,558 gross (12,186 net) acres of land mainly located in Noble County.
Most of the leasehold acreage acquired in the shale play is held by shallower production.
The transaction includes all depths of 300ft below the top of the Queenston formation down to all further depths.
It does not, however, include any associated shallow production.
The deal could possibly include another adjacent block of similar acreage, assuming the seller can satisfy certain title deficiency requirements.
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By GlobalDataMagnum Hunter chairman and CEO Gary Evans said the acquisition is another ‘bolt-on’ transaction in one of the company’s core unconventional resource plays.
"Given that nearly all the acreage is held by shallow production, this provides the company maximum flexibility in the development of the land," Evans said.
The acquisition increases Triad Hunter’s gross acres in the Utica Shale to 23,214 acres.
The acreage purchased recently is in close proximity to the Magnum Hunter unit’s existing acreage position in Washington and Noble Counties, Ohio.
The move now provides the company with the expansion opportunity for its midstream business, Eureka Hunter Pipeline.
Magnum Hunter is an independent exploration and production firm engaged in the acquisition, development and production of crude, natural gas and natural gas liquids.
The company is currently active in prolific unconventional shale resource plays such as the Marcellus Shale, Utica Shale, Eagle Ford Shale and Williston Basin/Bakken Shale in North America.