Ultra Petroleum (UPL) issued an operations update for the third quarter of 2011and disclosed additional information on the company’s activity in the Marcellus Shale.
Ultra Petroleum drilled forty eight gross or thirty two net wells into the Marcellus Shale during the quarter, and reported total average production of 126 million cubic feet of natural gas equivalents per day. This was a 20% sequential growth rate from the second quarter of 2011, and 155% higher than the second quarter of 2010.
During the first nine months of 2011, Ultra Petroleum has put fifty nine horizontal wells onto production with an average initial production rate of 6.4 million cubic feet of natural gas equivalents per day.
In Lycoming County, Pennsylvania, Ultra Petroleum recently put onto production two pads with three wells each. These wells reported average initial production rate of 8.2 million cubic feet of natural gas equivalents per day, and has higher flowing pressures. Ultra Petroleum said that wells in this area of the Marcellus Shale will have higher estimated ultimate recoveries than in other parts of Pennsylvania where the company has drilled.
Ultra Petroleum estimates that the company will add 47 gross or 18 net Marcellus Shale wells onto production during the fourth quarter of 2011, boosting the total for 2011 to 106 gross or 53 net wells. Ultra Petroleum said that production from Pennsylvania in 2011 will exceed 40 Bcfe.