This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

CONSOL Energy Provides Latest Marcellus Shale Well Results; Acquires Nearly 90,000 Acres With Marcellus Shale And Upper Devonian Potential

PITTSBURGH, Dec. 10, 2013 /PRNewswire/ -- CONSOL Energy Inc. (NYSE: CNX), a leading Appalachian natural gas producer, is providing an update on Marcellus Shale well results from several CONSOL-operated drilling pads in Washington County, Pa. The eleven wells on three pads had an average lateral length of 5,300 feet and were completed with some combination of shorter stage lengths, reduced cluster spacing, and other enhanced production techniques. Initial production from the wells averaged 10.7 MMcfe per day, and ranged from 5.3 MMcfe to 18.4 MMcfe per day. While EURs 1 have yet to be calculated for these wells, the company believes they should easily approach 2.0 Bcfe per thousand lateral feet. The wells were turned into line quickly after flowing back frack fluids.

(Logo: http://photos.prnewswire.com/prnh/20120416/NE87957LOGO )

Separately, in Barbour County, W. Va., CONSOL has recently completed its first pad, the six-well Philippi 13 pad, that employed the same short stage lengths, reduced cluster spacing, and enhanced production techniques with positive early results.  Drillout and flowback activities are ongoing but the first well, PHL 13F which is 8,733 feet in lateral length, recently went into production with a maximum 24-hour flow rate of 13.6 MMcfe per day.

"While CONSOL Energy has experimented with various components of enhanced completion and production techniques over the past 18 months, these wells represent the first large-scale application," commented J. Brett Harvey, chairman and CEO. "These results are a splendid example of one of our core values – continuous improvement – that we strive for in all areas."

For the company's 2014 Marcellus Shale program, CONSOL Energy intends to make extensive use of these enhanced completion and production techniques.

In addition to providing well results, CONSOL Energy has acquired the gas drilling rights to nearly 90,000 contiguous acres from Dominion Transmission, a unit of Dominion Resources. The majority of the acreage, which is associated with Dominion's Fink-Kennedy, Lost Creek, and Racket Newberne gas storage fields in West Virginia, lies in the northern portion of Lewis County and the southern portion of Harrison County. CONSOL anticipates that over one-half of the acres will have wet gas.

CONSOL Energy has acquired the gas rights to both the Marcellus Shale and the Upper Devonian formations in the storage fields. A total gross consideration of up to $190 million will be paid in two installments – approximately 50% paid at closing last week, with the balance due over time as the acres are drilled. CONSOL has also committed to be an anchor shipper on Dominion's transmission system.

"This transaction reinforces CONSOL Energy's commitment to being a leading natural gas producer in the Appalachian Basin," continued Mr. Harvey. "These parcels represent what could be the largest untapped contiguous acreage in the southern core of the Marcellus Shale. They complement our already significant acreage position in Northern West Virginia. As CONSOL Energy accelerates its gas drilling in the next few years, and continues to improve its efficiency through enhanced production techniques, we believe this transaction could provide us with more than 350 risked long lateral Marcellus Shale drilling locations."

Noble Energy, CONSOL Energy's joint venture partner in the Marcellus Shale, is exercising its right to participate at a 50% level in this transaction.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
SYM TRADE IT LAST %CHG

Markets

DOW 18,080.14 +21.45 0.12%
S&P 500 2,117.69 +4.76 0.23%
NASDAQ 5,092.0850 +36.0220 0.71%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs