Magnum Hunter Resources announced earlier this week that it spent $22.3 million to acquire drilling rights to the bankrupt aluminum producer's acreage in Monroe County, Ohio and Wetzel County, W. Va. The deal was confirmed in a Delaware bankruptcy court last week.
The acquisition adds to Magnum Hunter's core assets in southeast Ohio and northern West Virginia. The Texas-based exploration company has increasingly leaned on the Appalachian Basin to drive up production volumes, which now accounts for approximately 70% of its proved reserves.
Ormet filed for Chapter 11 bankruptcy protection in early 2013. Last month, the company sold its aluminum smelting plant in Hannibal to Niagara Worldwide, LLC.