Here are some additional details from the conference call held by Noble Energy (NBL) and CONSOL Energy (CNX) to discuss the Marcellus Shale joint venture.
- Noble Energy is paying $160 million for a 50% stake in the proved developed producing (PDP) reserves of CONSOL Energy. The company held 89 Bcf of PDP reserves which converts to $1.80 per Mcf.
- CONSOL Energy estimates that the company has proved undeveloped reserves in the Marcellus Shale totaling 770 Bcf.
- CONSOL Energy will be the operator on the 570,000 net acres that are in the dray gas area of the play, and Noble Energy will be the operator on the 95,000 net acres that are in the wet gas area of the Marcellus Shale.
The rig count and gross wells drilled in the joint venture will ramp up according to this schedule through 2015:
2011 - Four rigs and 35 wells.
2012 - Eight rigs and 140 wells.
2013 - Twelve rigs and 227 wells.
2014 – Fifteen rigs and 318 wells.
2015 - Sixteen rigs and 354 wells.
CONSOL Energy paid $1.88 billion or $3,827 per acre in 2010 for the Marcellus Shale assets held by Dominion Resources (D). The company said that the joint venture deal values the acreage at $9,650 per acre.
