CONSOL Energy (CNX) held a conference call on July 29, 2010, and made comments on its operations in the Marcellus Shale. The company has a large position in Pennsylvania and West Virginia.
“We have seen outstanding results in the last five Marcellus Shale wells, including three wells brought online in the second quarter. The estimated ultimate recoveries of these wells range from 5.5 Bcf to 9.9 Bcf. These estimated ultimate recoveries, though still preliminary, are far higher than the standard type curve that we have previously seen.”
“CONSOL Energy's position on the Marcellus Shale will allow us to be profitable in the current pricing environment due to the basis premium for being close to important northeast markets and our position as a low-cost producer within the Marcellus play.”
“By the end of this year we'll know definitively what the northern West Virginia and Central PA acreage positions look like because of our drilling program so I think we'll have a much better view on our 10- to 15-year drilling development plan on a standalone basis. And at that point, I think we'll be in a much better position to see not just what asset-based portion we want to monetize, but what the market opportunities are with regard to it.”
“The wells that we disclosed there were sort of the wells that were tied to the line in 2010 to date. And if you look at the 50-day average for the IPs that, that would correspond to, it's somewhere around 4.5 million a day.”
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