Marcellus Shale

Ultra Petroleum - Q4 2011 Marcellus Shale Summary

Ultra Petroleum (UPL) issued an operational update on its activities in the Marcellus Shale during the fourth quarter of 2011.  The company was producing 196 million cubic feet of natural gas equivalents per day from the Marcellus Shale as of January 21, 2012.

• Drilled 30 gross or 12 net horizontal wells, and started production from 53 gross or 23 net horizontal wells.
• Average production of 149 million cubic feet of natural gas equivalents per day, up 18% sequentially and 104% on a year over year basis.
• Pennsylvania net production record of 188 million cubic feet of natural gas equivalents per day.
• Tioga County Marcellus Shale Wells – initial production rates averaged 7.1 million cubic feet of natural gas equivalents per day.
• Lycoming County Marcellus Shale Wells - initial production rates averaged 6.1 million cubic feet of natural gas equivalents per day.

Rex Energy Sets Marcellus Shale Budget For 2012

Rex Energy (REXX) established a $189.7 million capital budget for 2012, with approximately 90% directed towards the development of the company’s Marcellus Shale acreage.

Rex Energy plans to spend $168.1 million on its operated and non operated Marcellus Shale acreage in the Appalachian Basin.  The funds will be split between its operated and non operated acreage.

Butler County

Rex Energy is the operator in this area and plans to drill 12 gross or 8.4 net wells and complete 20 gross or 12.9 net wells in 2012.  The company expects to put 21 gross or 13.6 net wells onto production during the year.

Westmoreland, Clearfield and Centre Counties

Rex Energy is involved as a non operator with Williams (WMB) in this area and owns a 40% working interest in the Marcellus Shale. The joint venture is expected to drill 17 gross or 6.6 net wells and complete 16 gross or 6.4 net wells in 2012.  The company expects to put 16 gross or 6.4 net wells onto production during the year.

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.