CNX Gas Corporation (CXG) has allocated a $400 million capital expenditure budget for 2010, including $160 million to develop its acreage in the Marcellus Shale. The company is currently operating one horizontal rig, and will start a second rig in the Marcellus Shale beginning in March 2010.
CNX Gas has 230,000 acres under net lease that are prospective for the Marcellus Shale. This position is located in West Virginia, Ohio, New York and Pennsylvania. The company has drilled eight wells on its properties through September 2009, with an average peak daily production rate of 4.1 million cubic feet equivalent per day of natural gas. CNX Gas uses an average estimated ultimate recovery (EUR) of 3.5 billion cubic feet per well.
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