Marcellus Shale

Ultra Petroleum Releases 2011 Marcellus Shale Capital Budget

Ultra Petroleum (UPL) released a $1.1 billion capital budget for 2011, and has allocated $380 million to develop its properties in the Marcellus Shale.

Ultra Petroleum plans to participate in a total of 213 gross or 105 net wells in the Marcellus Shale in 2011.  This well count is composed of 163 gross or 80 net horizontal wells and 50 gross or 25 net vertical wells. In 2010, Ultra Petroleum participated in 116 gross or 72 net horizontal wells and 61 gross or 31 net vertical wells.

Talisman Energy Releases Marcellus Shale Budget For 2011

Talisman Energy (TLM) has allocated $800 million in capital in 2011 to develop its properties in the Marcellus Shale.  The company will spend $1.7 billion in total in 2011 across the entire company.

Talisman Energy is diverting capital away from dry gas plays in 2011 and plans to reduce its rig count in the Marcellus Shale from 12 rigs at the end of 2010 to 9 rigs during the year.  The company plans to drill 100 net wells in the Marcellus Shale in 2011, and expects production to average 350 million to 400 million cubic feet per day in 2011.  

Talisman Energy produced an average of 180 million cubic feet per day in 2010 from the Marcellus Shale, and 315 million cubic feet per day at the end of 2010.

National Fuel Gas Company Buys Additional Marcellus Shale Acreage

National Fuel Gas Company (NFG) announced the purchase of properties in the Appalachian Basin that are prospective for the Marcellus Shale.

National Fuel Gas Company is purchasing oil and gas properties in Tioga County, Pennsylvania, from EOG Resources (EOG).  The company will pay $23 million for the acreage, which is located in Covington Township.

National Fuel Gas Company will add 42 billion cubic feet equivalent of proved reserves as a result of the transaction.  The company conducts its exploration and production activities through Seneca Resources Corporation, a wholly owned subsidiary of the company.

National Fuel Gas Company increased its expected production for fiscal 2011 to a range of 65 to 75 billion cubic feet equivalent, from the previous range of 60 to 70 billion cubic feet equivalent.  The company will also spend between $485 million and $560 million in capital expenditures in fiscal 2011.  The previous expected range was from $425 million to $500 million.