This new cryogenic plant will treat and process natural gas liquids transported on the company’s Eureka Hunter Pipeline System located in northwestern West Virginia.
Under the terms of the contract, installation and hookup of the facility will begin once this new natural gas processing plant is delivered in October 2011.
The company intends to fund the purchase price of the plant using undrawn availability under its commercial bank revolver and cash on hand.
Magnum Hunter chairman and CEO Gary Evans said that natural gas to be produced from the company’s 50,000 net acres in the Marcellus Shale natural gas resource play of northwestern West Virginia and Ohio is highly liquids rich, in the 1,200btu to 1,400btu range.
"Magnum Hunter intends to drill a minimum of 12 horizontal Marcellus Shale wells in fiscal year 2011," Evans said.
