Marcellus Shale

Ultra Petroleum To Reduce Marcellus Shale Drilling In 2012

Ultra Petroleum (UPL) is reducing development of the Marcellus Shale in 2012, and plans to spend only $400 million on development drilling in the Marcellus Shale during the year. The company’s latest presentation indicates that in 2011, 40%, or $540 million of a $1.35 billion capital budget was dedicated to the Marcellus Shale and other properties in the Appalachian Basin.

Ultra Petroleum’s total capital budget for 2012 is $925 million, a 38% cut from the $1.5 billion spent in 2011.  The company expects to produce in a range from 250 to 260 Bcfe, representing 2% to 6% over 2011.

Range Resources Hits Marcellus Shale Production Goal

Range Resources (RRC) announced that the company is producing 400 million cubic feet of natural gas equivalents per day from the Marcellus Shale.  This is the production level that the company established for the end of 2011. Range Resources exited 2010 producing 200 million cubic feet of natural gas equivalents per day from the Marcellus Shale.

2011 Highlights

• Increased firm transportation capacity and sales arrangements to 650 million cubic feet per day.
• Increased natural gas processing capacity in southwestern Pennsylvania to 435 million cubic feet per day.
• Executed the company’s first ethane extraction and sales contract.

Cabot Oil and Gas Reaffirms Production Guidance

Cabot Oil and Gas Corporation (COG) reaffirmed the company’s guidance on production for the third quarter of 2011.  The company is active in the Marcellus Shale and generates the majority of its production from this play.

Cabot Oil and Gas Corporation guidance for the third quarter of 2011 is for a range of 521 to 567 million cubic feet of natural gas equivalents per day.  The company issued the affirmation due to speculation in the market that “operational challenges” and the “logistics of moving gas” in Pennsylvania might impact production growth.

Cabot Oil and Gas Corporation also has fourth quarter of 2011 guidance in a range of 562 to 608 million cubic feet of natural gas equivalents per day.  

Cabot Oil and Gas Corporation also disclosed that the company’s Marcellus Shale gross production set a 24 record of 483 million cubic feet of natural gas equivalents per day, and a peak inter-day rate of 520 million cubic feet of natural gas equivalents per day.   

Cabot Oil and Gas Corporation is constructing the Laser and Springville pipelines to accommodate increased production in the Marcellus Shale.