Marcellus Shale

PDC Energy Issues Marcellus Shale Update

PDC Energy (PDC) issued an update on its development activities in the Appalachian Basin, where the company is developing the Marcellus Shale. 

PDC Energy has drilled and completed the first three wells in the company’s joint venture with Lime Rock Partners.  The average 24 hour peak rate of production for the three wells was 2.4 million cubic feet per day of natural gas.   

PDC Energy said that the reserves on each of these wells will range between 3.5 billion and 5 billion cubic feet.  The company has started drilling its sixth horizontal well into the Marcellus Shale and expects to complete this and two other wells during the first quarter of 2011.  PDC Energy plans a nine well Marcellus Shale drilling program in 2011.

Petroleum Development Corporation Enters Joint Venture in Marcellus Shale

Petroleum Development Corporation (PETD) announced the formation of a joint venture with Lime Rock Partners to develop its properties in the Marcellus Shale. Lime Rock Partners is a privately held company.

Petroleum Development Corporation will put 115,000 net acres that are located in the Appalachian Basin into the venture. The company said that approximately 55,000 of these acres are prospective for the Marcellus shale. The properties currently produce 12 million cubic feet per day of natural gas. Total proved reserves on the acreage are 113 billion cubic feet equivalent.

Lime Rock put $45 million into the joint venture, and Petroleum Development Corporation has an option to receive a future cash contribution of $11.5 million by the end of 2010. Lime Rock Partners must fund in full by December 31, 2011 to earn a 50% interest in the joint venture.