Dec 15 (Reuters) - CNX Gas Corp said its first horizontal well in the Marcellus shale was producing at a record rate and the natural gas explorer raised its 2008 production outlook.
The company raised its production forecast to 75 billion cubic feet (bcf) from 74 bcf. This was the third production outlook raise by the company in 2008, from its initial expectation of 72 bcf.
CNX said its well in Marcellus was producing at a rate of 6.5 million cubic feet per day (mmcf), an increase of 1.3 mmcf/day from its initial drilling rate.
Shale formations like the Marcellus, which are sedimentary rocks found across the United States that make natural gas, were once considered too costly and difficult to drill.
But new technologies, like horizontal drilling and fracture stimulation, in recent years and high energy prices have led to increased drilling of natural gas in these regions.
CNX said the production rate at the well in Marcellus was a company record, adding that it will shortly start fracturing its second and third horizontal well in the region.
Shares of the company were trading up 1.4 percent at $30.22 Monday morning on the New York Stock Exchange.
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(Reporting by Arup Roychoudhury in Bangalore, Editing by Dinesh Nair) (arup.roychoudhury@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arup.roychoudhury.reuters.com@reuters.net)) Keywords: CNXGAS/
COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
The company raised its production forecast to 75 billion cubic feet (bcf) from 74 bcf. This was the third production outlook raise by the company in 2008, from its initial expectation of 72 bcf.
CNX said its well in Marcellus was producing at a rate of 6.5 million cubic feet per day (mmcf), an increase of 1.3 mmcf/day from its initial drilling rate.
Shale formations like the Marcellus, which are sedimentary rocks found across the United States that make natural gas, were once considered too costly and difficult to drill.
But new technologies, like horizontal drilling and fracture stimulation, in recent years and high energy prices have led to increased drilling of natural gas in these regions.
CNX said the production rate at the well in Marcellus was a company record, adding that it will shortly start fracturing its second and third horizontal well in the region.
Shares of the company were trading up 1.4 percent at $30.22 Monday morning on the New York Stock Exchange.
For the alerts, please double click
(Reporting by Arup Roychoudhury in Bangalore, Editing by Dinesh Nair) (arup.roychoudhury@thomsonreuters.com; within U.S. +1 646 223 8780; outside U.S. +91 80 4135 5800; Reuters Messaging: arup.roychoudhury.reuters.com@reuters.net)) Keywords: CNXGAS/
COPYRIGHT Copyright Thomson Reuters 2008. All rights reserved. The copying, republication or redistribution of Reuters News Content, including by framing or similar means, is expressly prohibited without the prior written consent of Thomson Reuters.
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