Williams Companies (WMB) held a conference call on July 29, 2010, to discuss the company’s earnings report for the second quarter of 2010. The company made comments on its activities in the Marcellus Shale.
“We completed a major E&P acquisition at the Williams level that establishes a significant and growing position in the Marcellus, we now have just under 100,000 acres there…Our all-in costs for the now-97,000 acres we hold is just under $7,000 an acre…We would note that the 70,000 of our 97,000 acres are not part of the JV.”
“We expect to drill 100 wells in the Marcellus in 2011, running about eight rigs, close to 200 wells in 2012 as we run 14 rigs. So, clearly, Marcellus is becoming a bigger part of our mix. By 2013, it will be our second largest producing basin, by 2015, we would expect that Marcellus would be producing in excess of 500 million a day.”
“With respect to the Rex JV, 12 wells have been drilled under that JV, seven wells are now producing, we have one rig operating. Since we took over operation earlier this year, we've drilled one well. That's the Westmoreland County Slavic Trust Well and it appears to be our best well, flowing approximately 4.9 million a day on a 30-day test."
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