Marcellus Shale

Ultra Petroleum - Q1 2010 Marcellus Shale Comments - Part Two

Ultra Petroleum (UPL) reported earnings for the first quarter of 2010, and held a conference call to discuss the results. During the call, the company made comments on its activities in the Marcellus Shale in Pennsylvania.

Ultra Petroleum has seen excellent results from the horizontal wells that it has drilled on its acreage in the Marcellus Shale.

“Since Q2 2009, Ultra has drilled or participated in a total of 74 horizontals, 20 vertical Marcellus wells. Currently, 41 of these horizontal wells have been completed and 22 are producing. The average IP rate for these horizontal Marcellus wells is over 7.7 million cubic per day. The average 30-day production rate for these wells is in excess of 4.6 million cubic feet per day, with the highest average 30-day rate at 7.86 million cubic feet a day.”

“In the first quarter of 2010, Ultra drilled or participated in the drilling of a total of 26 horizontal wells. Our drilling and completion programs have continued, and we have added an additional 13 drilled wells since the end of Q1.”

“The highest IP of these three wells was over 13.5 million cubic feet a day. We expect to drill an additional 110 horizontal Marcellus wells, 70 net and 90 -- 45 net vertical wells in the remainder of 2010.”

Source: Seeking Alpha

Range Resources Reports Two Marcellus Shale Well Completions

Range Resources (RRC) provided investors with an update on its operations in the Marcellus Shale, where the company has 1.3 million acres under lease. The company has 900,000 acres in the fairway of the play, with 600,000 in southwestern Pennsylvania and 300,000 in northeastern Pennsylvania.

Range Resources drilled its first horizontal wells on its acreage in the northeastern sector of the Marcellus Shale. The two wells produced 13.3 and 13.6 million cubic feet equivalent per day during a seven day test period.

The company estimates that its net unproved resource potential of its northeast Marcellus Shale acreage is in a range from 6 to 8 Tcfe.

Rex Energy Moves Forward With Marcellus Shale Development In Westmoreland County

Rex Energy (REXX) reported earnings and updated its operations in the Marcellus Shale in Appalachia. Rex Energy drilled four wells in Westmoreland County so far in 2010.

The wells had an average drilling and completion cost of $4.5 million; an average estimated ultimate recovery (EUR) of 3.1 Bcfe, and an average 7-day production rate of 2.9 million cubic feet equivalent per day.

During 2010, Rex Energy plans on operating two drilling rigs in the Marcellus Shale. These rigs will drill 10 net operated Marcellus Shale wells. The company will also participate in nine gross or 4.5 net non-operated wells.