Marcellus Shale

CONSOL Energy To Spend $575 million In Marcellus Shale In 2012

CONSOL Energy (CNX) approved a $1.7 billion capital budget for 2012 and plans to spend $575 million in the Marcellus Shale, up from $427 million in 2011.  The funds will be used to drill 61 net wells during the year.  CONSOL Energy estimates that the company’s drilling in the Marcellus Shale through 2015 will be:

2012 – 61 net wells

2013 – 114 net wells

2014 – 158 net wells

2015 – 179 net wells

CONSOL Energy said that in 2012 the company will target development towards parts of the Marcellus Shale that contain liquids, with 39 of the 122 gross wells during the year planned for these areas.  CONSOL Energy is involved in a joint venture with Noble Energy (NBL) in the Marcellus Shale.

EXCO Resources To Increase Marcellus Shale Drilling In 2012

EXCO Resources (XCO) has budgeted $585 million in 2012 to conduct drilling and completion operations across the company’s oil and gas properties.  The company plans to spend $93 million of these funds in the Marcellus Shale for drilling and completion activities.  This is an increase over 2011 spending levels.

EXCO Resources will spend an additional $13 million to acquire more leases and $22 million for other projects and seismic acquisition.

EXCO Resources plans to drill 55 gross or 13.2 net Marcellus Shale wells in 2012, and 16 gross or 6 net appraisal wells. The company will operate an average of five rigs in the Marcellus Shale in 2012, up from four rigs in 2011.

Ultra Petroleum - Q3 2011 Marcellus Shale Summary

Ultra Petroleum (UPL) issued an operations update for the third quarter of 2011and disclosed additional information on the company’s activity in the Marcellus Shale.

Ultra Petroleum drilled forty eight gross or thirty two net wells into the Marcellus Shale during the quarter, and reported total average production of 126 million cubic feet of natural gas equivalents per day.  This was a 20% sequential growth rate from the second quarter of 2011, and 155% higher than the second quarter of 2010.

During the first nine months of 2011, Ultra Petroleum has put fifty nine horizontal wells onto production with an average initial production rate of 6.4 million cubic feet of natural gas equivalents per day.

In Lycoming County, Pennsylvania, Ultra Petroleum recently put onto production two pads with three wells each.  These wells reported average initial production rate of 8.2 million cubic feet of natural gas equivalents per day, and has higher flowing pressures.  Ultra Petroleum said that wells in this area of the Marcellus Shale will have higher estimated ultimate recoveries than in other parts of Pennsylvania where the company has drilled.

Ultra Petroleum estimates that the company will add 47 gross or 18 net Marcellus Shale wells onto production during the fourth quarter of 2011, boosting the total for 2011 to 106 gross or 53 net wells. Ultra Petroleum said that production from Pennsylvania in 2011 will exceed 40 Bcfe.