Sept 26 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.