Marcellus ShaleOur gross Marcellus shale production as of October 20, 2012, was approximately 154 Mmcf per day (32.4 Mmcf per day net), which represents an increase of more than 37% since the end of 2011. For the week ended October 24, 2012, we had more than 19.5 Mmcf per day (4.0 Mmcf per day net) of production shut in due primarily to offset drilling and completion activities. We have implemented a development program within our acreage in Northeast Pennsylvania and are continuing an appraisal program in Central Pennsylvania. Most of our drilling activity will be in Lycoming County, Pennsylvania where we are realizing our best returns in the Marcellus shale, particularly in West Lycoming where our last completion had initial production of 6.9 Mmcf per day. However, we continue to see good results in Central Pennsylvania with initial production from our most recent wells averaging over 7.0 Mmcf per day. We are currently drilling with one operated rig. Our budget, as revised in February 2012, was to drill 49 gross (12.4 net) operated wells in the Marcellus shale play in our Appalachia region. Of the 49 wells, 46 gross (11.5 net) are development wells and 3 gross (0.9 net) are appraisal wells. We continue to evaluate our 2012 Marcellus program, which could impact our rig count, activity levels and number of wells turned to sales. Our net drilling dollars are reduced by the effect of the carry we receive from BG Group. Approximately $5.2 million of the carry remains available to us from BG Group as of September 30, 2012. We expect that the remaining carry will be used in the fourth quarter 2012.
EXCO Resources, Inc. Reports Third Quarter 2012 Results
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts
More than 30 investing pros with skin in the game give you actionable insight and investment ideas.