EQT Corporation (NYSE: EQT) today reported year-end 2012 total proved reserves of 6,004 Bcfe. This represents a 639 Bcfe net increase over the 5,365 Bcfe reported last year, with a reserve replacement ratio of 345%. The Company's Marcellus proved reserves increased by 864 Bcfe based on wells drilled in 2012, a higher estimated ultimate recovery (EUR) from reduced cluster spacing wells, and an increased well density across a portion of its acreage in Greene County, Pennsylvania. The utilization of reduced cluster spacing increased EUR an average of 23% per well, where applicable. Reduced cluster spacing was used for approximately 25% of the proved developed wells, and will be used for 25% of the proved undeveloped wells. The EUR of proved Marcellus wells averaged 6.4 Bcfe, with an average length of pay of 4,512 feet.
For 2012, drill bit finding costs were $0.53 per Mcfe. The Company's Marcellus proved developed producing (PDP) additions totaled 309 Bcfe on $389 million of capital for a development cost of $1.26 per Mcfe. PDP negative revisions totaled 110 Bcfe, primarily due to a reduction in expected well life, as a result of lower natural gas prices. Nearly all of the negative revisions relate to Coal Bed Methane (CBM) and other vertical wells.
EQT estimates year-end 2012 total reserves, including proved, probable and possible (3P) reserves, at 25.9 Tcfe, an increase of 4.5 Tcfe over the 2011 estimate. More than half of the 3P reserves increase was from a portion of the Company's 170,000 Upper Devonian net acreage, which are expected to be developed independently from the Marcellus. The Company also has approximately 13,600 net Utica acres in Ohio, which add an insignificant amount of possible reserves. To delineate the plays, EQT plans to drill 11 Upper Devonian and 8 Utica wells in 2013.
Ryder Scott Company, petroleum consultants audited 100% of the Company’s proved reserves, while estimated 3P reserves are determined in accordance with the Securities and Exchange Commission regulations. The Company also made an assessment of its total resource potential, which include 3P reserve totals.