Marcellus Shale

National Fuel Gas Reports Increase In Production From Marcellus Shale

National Fuel Gas (NFG) reported that the company’s net production from the Marcellus Shale has reached 120 million cubic feet equivalent per day as of 3/7/2011.  The company has 32 operated and 27 non operated wells producing from the Marcellus Shale.

National Fuel Gas has also revised operational information on wells drilled here.  The company now expects wells to cost between $5.0 million and $6.4 million due to an increased number of hydraulic fracturing stages.   The estimated ultimate recovery (EUR) on several recent Marcellus Shale wells has been as high as 8 billion cubic feet. 

Magnum Hunter Resources To Buy NGAS Resources - Adds To Marcellus Shale Position

Magnum Hunter Resources (MHR) announced the purchase of NGAS Resources (NGAS), an Appalachian based exploration and production company with extensive acreage prospective for the Marcellus Shale.

Magnum Hunter Resources will pay $0.55 per share for all the outstanding shares of NGAS Resources.  The company will issue approximately 6.6 million shares of its common stock in the deal, or 0.0846 shares of Magnum Hunter Resources for each share of NGAS Resources.  The value of the deal including debt assumed by Magnum Hunter Resources is $98 million.

The Marcellus Shale assets acquired from NGAS Resources include proved reserves of 78.4 Bcfe as of the end of 2009, and net production of 9.2 million cubic feet of natural gas equivalents per day as of the end of the third quarter of 2010. The company has approximately 360,000 net acres under lease, much of which is prospective for the Marcellus Shale.

Atlas Energy Updates Marcellus Shale Activity

Atlas Energy (ATLS) reported on the company’s operations in the Marcellus Shale during the second quarter of 2010. The company has 342,000 net acres in a joint venture with Reliance Industries Limited, and 280,000 net acres outside of that joint venture.

The joint venture agreement calls for the following drilling schedule in the Marcellus Shale over the next three years:

2011 – 108 wells

2012 – 171 wells

2013 – 300 wells

Atlas Energy reported Marcellus Shale gross production of 82 million cubic feet equivalent per day, or net production of 33 million cubic feet equivalent per day at the end of the second quarter of 2010.