Chattanooga Shale

CNX Gas - Chattanooga Shale Update

CNX Gas (CXG) reported on its recent activities in the Chattanooga Shale for the first quarter of 2010. The company drilled 13 horizontal wells in the Chattanooga Shale, and expects to drill a total of 25 wells during 2010. The total cost to drill these wells will be $28 million, or $1.12 million per well.

CNX Gas is no longer an independent company and was purchased by CONSOL Energy (CNX) in early 2010.

Nextraction Energy Progresses On Chattanooga Shale Well

Nextraction Energy Corporation reported that it was in the process of drilling the Mountain Mineral #5 well into the Chattanooga Shale close to the Kentucky and Tennessee border.

The well was drilled to a total depth of 2,521 feet at a cost of $170,000. NCE said that $120,000 would be needed to hydraulically fracture and complete this Chattanooga Shale well.

Netraction Energy and Vinland Energy Receive Permit To Drill Chattanooga Shale Well

Netraction Energy and Vinland Energy Operating, LLC, two private oil and gas companies, has received a permit to drill a well to test the potential of the Chattanooga Shale in Kentucky.

The Jennifer Conover #1 well is located near the border with Tennessee and will be drilled to a depth of 4,000 feet. Besides the Chattanooga Shale, the well will also test conventional zones including Big Lime, Knifely and Warsaw.

Netraction Energy and Vinland Energy Operating, LLC have 70,130 acres under lease in Whitley County and McCreary County in southeastern Kentucky.

Atlas Energy - Chattanooga Shale Update

Atlas Energy (ATLS) has a 120,000-acre position in northeastern Tennessee that is prospective for the Chattanooga Shale. The company has 450 producing vertical wells in Tennessee, and is the largest producer in the state. Atlas Energy believes that it has nearly 500 drilling locations into the Chattanooga Shale.

The Chattanooga Shale is a Devonian age organic, hydrocarbon rich shale found throughout Tennessee, and other neighboring states. The Chattanooga Shale is located beneath the Mississippian Fort Payne Limestone at a depth of approximately 3,000- 4,000 feet. The shale thickness varies from 80 - 200 feet.

Atlas Energy estimates that the production rates of horizontal wells drilled to the Chattanooga Shale will be 300-500 thousand cubic feet per day and cost less than $1 million to drill and complete.

Energen Corporation Announces Delay In Chattanooga Shale Well

Energen Corporation (EGN) announced a delay on the release of the completion results of its well being drilled to the Chattanooga Shale formation in Tuscaloosa County, Alabama.

The Cain 6-6#1 has a casing leak that needs to be repaired. The well has reached total depth of 7800 feet, and has a 1500-foot lateral. Energen Corporation said it would be as much as 90 days before the completion results of its Chattanooga Shale well would be released.

Energen Corporation Close To Completing Chattanooga Shale Well

Energen Corporation (EGN) is one of the few exploration and production companies that are active in developing the Chattanooga Shale. The company is nearing completion on the Cain 6-6 #1 well, located in Tuscaloosa County, Alabama.

Energen Corporation is using three-stage nitrogen fracturing on the 1500-foot lateral of the Chattanooga Shale well. The well was drilled to a total depth of 7800 feet.

CNX Gas Reports On Chattanooga Shale

CNX Gas (CXG) is one of the few publicly traded companies that are developing the Chattanooga Shale. The company made the following comments in its third quarter earnings press release.

“CNX Gas continues to be encouraged by its early Chattanooga Shale results. The company has been pursuing a delineation program across its position, which now stands at 268,000 mostly contiguous acres. One well, which came online on October 21, 2008, has produced over 140 MMcf, and is now producing at a daily rate of 861 Mcf, plus a few barrels of oil. A four-stage nitrogen foam frac was employed on this well. CNX Gas continues to acquire acreage in the Chattanooga Shale.”

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Geomet And The Chattanooga Shale

Geomet, Inc. (GMET) has significant acreage under lease in Northern Alabama that is prospective for the Chattanooga Shale. The company recently released data on some of the geological characteristics of the Chattanooga Shale.

Thickness – 35 to 75 feet
Depth – 1600 to 2100 feet
Organic Content – 9% to 16%
Reserves (Vertical) – 300 million cubic feet
Reserves (Horizontal) – 500-800 million cubic feet
Well Cost (Vertical) - $450,000
Well Cost (Horizontal) - $1.1 million
Porosity – 4%
Gas in Place – 8 to 15 billion cubic feet per section ___________________________________________________________________

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Miller Energy Resources Adds To Chattanooga Shale Acreage

Miller Energy Resources (MILL.OB) closed on two purchases in June 2009 that added to its portfolio of assets in the Chattanooga Shale. Miller Energy Resources, also known as Miller Petroleum purchased East Tennessee Consultants.  The assets purchased include 377 natural gas and oil wells and approximately 5,000 leased acres located in the Chattanooga Shale in Tennessee.

The company also purchased Ky-Tenn Oil, Inc., a private oil and gas company, whose assets includes approximately 35,325 leased acres located in the Chattanooga Shale and 173 existing natural gas and oil producing wells. Miller Energy Resources said that there are up to 700 drilling locations on the newly acquired acreage. ___________________________________________________________________

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Energen Resources - Chattanooga Shale Update

Energen Resources (EGN) reported its second quarter of 2009 earnings and updated its exploration and development activity in the Chattanooga Shale. The company said it plans to drill a new well targeting the Chattanooga Shale formation in Alabama before the end of 2009.

Energen Resources obtained its acreage in the Chattanooga Shale through a farm out agreement with Chesapeake Energy Corporation (CHK). Energen Resources received a 50% interest in 660,000 acres but is obligated to drill a well into both the Chattanooga and Conasauga Shales. ___________________________________________________________________

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