By midmorning, shares had gained 7% to $8.73.
The Houston-based oil and gas producer said its first dry gas well, located on the Stalder Pad in Monroe County, Ohio, was in operation as of earlier this week. The well had recently tested at a peak rate of 32.5 MMCF of natural gas per day.
"Our first well on the Stalder Pad is the most eastern well and one of the most southern wells drilled to-date in the entire Utica Play of Ohio," said CEO Gary Evans in a statement.
"The well's production is almost pure methane (97%) and therefore there is no need for processing, making it pipeline quality product. The benefit of owning the majority interest of our midstream division is that this well went directly through our gathering system to sales earlier this week. Therefore, we did not require any third-party to build a pipeline to this location."
Magnum Hunter Resources acts as operator of the well and holds a 47% interest. Other partners include Statoil (STO), Eclipse Resources and Northwood Energy.
TheStreet Ratings team rates MAGNUM HUNTER RESOURCES CORP as a Hold with a ratings score of C-. The team has this to say about their recommendation:
"We rate MAGNUM HUNTER RESOURCES CORP (MHR) a HOLD. The primary factors that have impacted our rating are mixed -- some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its robust revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, generally higher debt management risk and disappointing return on equity."