Talisman Energy released an operational update on its exploration and development activities, and reported on its Marcellus Shale acreage in Pennsylvania.
Talisman Energy said that production from the Marcellus Shale was 150 million cubic feet per day at the end of April, and should exit 2010 at a rate of from 250-300 million cubic feet per day.
In the first quarter of 2010, Talisman Energy drilled 35 gross wells, brought 22 wells on line and has 41 wells waiting on completion. The company has 8 rigs operating in the play.
“Today our Marcellus wells have a breakeven significantly lower than the realizations and that’s before the impact of any hedging.”
“At the end of April, we were producing a 150 million cubic feet from the Marcellus and I am confident that we will exit the year as we said between 250 and 300 million cubic feet a day.”
“Couple of things to say on the Marcellus as you quite rightly say we have planned this year on average IPs in the Marcellus of 3 and EURs of 3.5, the well results in the first quarter have been better than that. In the first quarter we have seen average IPs of 5 and average EURs of 6”
Source: Seeking Alpha