National Fuel's (NFG) Seneca Resources Updates on Marcellus Shale Ops
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Price: $83.53 +0.38%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.9%
Revenue Growth %: +6.0%
Overall Analyst Rating:
SELL (= Flat)
Dividend Yield: 2.9%
Revenue Growth %: +6.0%
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Seneca Resources Corporation, the wholly owned exploration and production subsidiary of National Fuel Gas Company (NYSE: NFG) provided an update on its program to assess the Utica Shale formation, as a second producing horizon underlying much of its Marcellus Shale acreage in western Pennsylvania.
In Forest County, Pa., Seneca has flow tested its first horizontal Utica Shale well at a peak 24-hour rate of 3.9 million cubic feet per day. Initial testing on this well began on Nov. 11, 2012 and lasted for six days. Currently, this well is shut-in while awaiting pipeline infrastructure and is expected to begin production in the second quarter of fiscal 2013. Thus far, Seneca has drilled two horizontal and three vertical exploration wells into the Utica Shale formation. The second horizontal well, located in the Mt. Jewett prospect area in McKean County, Pa., currently has three frac stages complete and the ability to complete additional stages is under evaluation.
“The Utica Shale represents a great opportunity for National Fuel given its presence across a significant portion of our Appalachian acreage,” said David F. Smith, Chairman and Chief Executive Officer of National Fuel. “In addition to our second delineation well that was drilled earlier this year in Mt. Jewett, we remain committed to further evaluation of the Utica’s potential. Two additional horizontal wells in Pennsylvania are planned during this fiscal year, one in the Owl’s Nest prospect area of Elk County, and another in the Henderson prospect area of Venango and Mercer counties. These delineation efforts will help us to further understand the extent, the characteristics, and the economics of the Utica across our acreage and the potential of the Utica to add to the value of our already attractive Marcellus Shale footprint.”
In Forest County, Pa., Seneca has flow tested its first horizontal Utica Shale well at a peak 24-hour rate of 3.9 million cubic feet per day. Initial testing on this well began on Nov. 11, 2012 and lasted for six days. Currently, this well is shut-in while awaiting pipeline infrastructure and is expected to begin production in the second quarter of fiscal 2013. Thus far, Seneca has drilled two horizontal and three vertical exploration wells into the Utica Shale formation. The second horizontal well, located in the Mt. Jewett prospect area in McKean County, Pa., currently has three frac stages complete and the ability to complete additional stages is under evaluation.
“The Utica Shale represents a great opportunity for National Fuel given its presence across a significant portion of our Appalachian acreage,” said David F. Smith, Chairman and Chief Executive Officer of National Fuel. “In addition to our second delineation well that was drilled earlier this year in Mt. Jewett, we remain committed to further evaluation of the Utica’s potential. Two additional horizontal wells in Pennsylvania are planned during this fiscal year, one in the Owl’s Nest prospect area of Elk County, and another in the Henderson prospect area of Venango and Mercer counties. These delineation efforts will help us to further understand the extent, the characteristics, and the economics of the Utica across our acreage and the potential of the Utica to add to the value of our already attractive Marcellus Shale footprint.”
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