Marcellus Shale

Talisman Energy Announces Possible Future Reduction In Marcellus Shale Drilling in 2012

Talisman Energy (TLM) is planning further cuts in drilling in the Marcellus Shale in 2012, as low natural gas prices lead to reduced capital plans for many operators.

Talisman Energy announced its 2012 capital spending plan on January 10, 2012, and said that it would end the year with 11 rigs working in the Marcellus Shale, with a plan to average between five and seven rigs here in 2012.

Talisman Energy reported fourth quarter of 2011 and full year results on February 15, 2012, and reported that the company ended the year with ten rigs operating in the Marcellus Shale.  Talisman Energy said that the company may reduce its rig count to “as few as three rigs over the course of the year.”

Ultra Petroleum To Reduce Marcellus Shale Drilling In 2012

Ultra Petroleum (UPL) is reducing development of the Marcellus Shale in 2012, and plans to spend only $400 million on development drilling in the Marcellus Shale during the year. The company’s latest presentation indicates that in 2011, 40%, or $540 million of a $1.35 billion capital budget was dedicated to the Marcellus Shale and other properties in the Appalachian Basin.

Ultra Petroleum’s total capital budget for 2012 is $925 million, a 38% cut from the $1.5 billion spent in 2011.  The company expects to produce in a range from 250 to 260 Bcfe, representing 2% to 6% over 2011.

Rex Energy Sets Marcellus Shale Budget For 2012

Rex Energy (REXX) established a $189.7 million capital budget for 2012, with approximately 90% directed towards the development of the company’s Marcellus Shale acreage.

Rex Energy plans to spend $168.1 million on its operated and non operated Marcellus Shale acreage in the Appalachian Basin.  The funds will be split between its operated and non operated acreage.

Butler County

Rex Energy is the operator in this area and plans to drill 12 gross or 8.4 net wells and complete 20 gross or 12.9 net wells in 2012.  The company expects to put 21 gross or 13.6 net wells onto production during the year.

Westmoreland, Clearfield and Centre Counties

Rex Energy is involved as a non operator with Williams (WMB) in this area and owns a 40% working interest in the Marcellus Shale. The joint venture is expected to drill 17 gross or 6.6 net wells and complete 16 gross or 6.4 net wells in 2012.  The company expects to put 16 gross or 6.4 net wells onto production during the year.