Marcellus Shale

CONSOL Energy Sells Royalty Interests In Marcellus Shale

CONSOL Energy (CNX) reported that the company sold a portion of its interests in the Marcellus Shale to Antero Resources, a private oil and gas company.

CONSOL Energy has received $193 million in exchange for a 7% share of the overriding royalty interests in 115,647 net acres in Pennsylvania and West Virginia.  The company is retaining the ownership of existing shallow wells on the acreage as well as the rights to other formations located at above and below the Marcellus Shale.

Rex Energy Reports Three Marcellus Shale Wells From Behm Pad

Rex Energy (REXX) issued an operational update on the company’s operated activity in the Appalachian basin where it is developing the Marcellus Shale.

Butler County

Rex Energy put onto production three wells drilled from the Behm pad in Butler County, Pennsylvania.  The wells had an average production rate during the first five days of 6.6 million cubic feet of natural gas equivalents per day.  The company said that this production rate was 50% higher than wells drilled from the Talarico pad and 74% higher than the Drushel pad.

The Behm wells had an average production rate during the first thirty days of 5.3 million cubic feet of natural gas equivalents per day.  This is 66% and 71% above the Talarico and Drushel pads, respectively.  

Rex Energy believes that the Behm Marcellus Shale wells will have an estimated ultimate recovery rate in excess of 5 Bcfe.

Cabot Oil and Gas Reaffirms Production Guidance

Cabot Oil and Gas Corporation (COG) reaffirmed the company’s guidance on production for the third quarter of 2011.  The company is active in the Marcellus Shale and generates the majority of its production from this play.

Cabot Oil and Gas Corporation guidance for the third quarter of 2011 is for a range of 521 to 567 million cubic feet of natural gas equivalents per day.  The company issued the affirmation due to speculation in the market that “operational challenges” and the “logistics of moving gas” in Pennsylvania might impact production growth.

Cabot Oil and Gas Corporation also has fourth quarter of 2011 guidance in a range of 562 to 608 million cubic feet of natural gas equivalents per day.  

Cabot Oil and Gas Corporation also disclosed that the company’s Marcellus Shale gross production set a 24 record of 483 million cubic feet of natural gas equivalents per day, and a peak inter-day rate of 520 million cubic feet of natural gas equivalents per day.   

Cabot Oil and Gas Corporation is constructing the Laser and Springville pipelines to accommodate increased production in the Marcellus Shale.