Magnum Hunter shuts 400 natural gas wells in Kentucky
Sept 26 |
Sept 26 (Reuters) - Oil and gas producer Magnum Hunter Resources Corp said it shut about 400 natural gas wells in Kentucky in the current quarter due to reduced natural gas prices and higher transportation costs.
Natural gas prices, which were as high as $14 per million British thermal units (mmBtu) in 2005, are slightly below $3 per mmBtu now.
The company also estimates output of about 9.5 million cubic feet equivalent per day (mmcfe/d) being curtailed after the company's wells in the Appalachia region were affected by a thunderstorm in June.
Houston-based Magnum Hunter, which continues to shift its focus to oil and liquids, said the closure of wells would reduce production by 1.7 mmcfe/d.
Share of the company were marginally down at $4.40 before the bell on Wednesday. They closed at $4.45 on the New York Stock Exchange on Tuesday.
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