Chattanooga Shale

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.

The Chattanooga Shale - CNX Gas

CNX Gas (CXG) is an exploration and production company with nearly one million acres under net lease in various shale plays in North America. CNX Gas has 244,000 net acres under lease in the Chattanooga Shale, and the company estimates that its net unrisked resource in its Chattanooga Shale acreage to be in a range of 1.1-2.5 Tcf. Its proved reserves are currently 11 Bcf.

CNX Gas is currently developing its acreage in the Chattanooga Shale in Tennessee. The company’s first horizontal well in the Chattanooga Shale had an initial production (IP) rate of 3.9 Mmcf per day. CNX gas has drilled a total of 20 horizontal wells in the Chattanooga Shale through June 2009.

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