Chief Oil & Gas Announces Marcellus Shale Results and Development Plans for 2010
Chief Oil & Gas LLC ("Chief") today provided a status update of its Marcellus Shale development.
DALLAS, TX (November 4, 2009) - Chief Oil & Gas LLC ("Chief") today provided a status update of its Marcellus Shale development. Chief's Marcellus leasehold has increased to more than 560,000 acres and leasing continues in selected areas. The Marcellus drilling program continues to expand, to date 39 wells have been drilled: 28 horizontal wells and 11 vertical wells. Currently, 20 horizontal wells are waiting on completion and 7 horizontal wells are being drilled or remain to be drilled in 2009. Chief has four horizontal rigs that are currently under long term-contract, three of which are new fit-for-purpose rigs.
"Since we entered the Marcellus in 2007, we have tested multiple drilling and completion methods and drilled wells in 9 counties in 2 states throughout our acreage gathering valuable knowledge for our drilling and completion program," said Michael Radler, Chief Operating Officer. "We are very pleased with our recent production rates and are seeing excellent EUR's on our horizontal wells. After analyzing our research and results, we have identified at least 3 key areas for development in the Northeast and Southwest. Our current goal is to focus on specific areas, such as Susquehanna County, where we have 15 wells planned in 2010 and will begin testing multi-well completion techniques."
Chief has set a 2010 development budget of $325-350 million depending upon success and natural gas prices and expects to exit 2010 with 7 rigs running. "We have 70 wells planned, primarily horizontal, for 2010." said Radler. "As we ramp up production, we will continue to improve efficiencies and reduce costs while extending lateral length and improving completion rates."
Chief Gathering LLC, the midstream subsidiary of Chief Oil & Gas, continues to progress with the build out of its pipeline infrastructure and securing contracts from 3rd party producers. Chief Gathering has been operating in the Marcellus since November 2008 and has secured 7 interstate pipeline interconnects: 2 each in Lycoming and Fayette counties, and one each in Bradford, Susquehanna, and Clearfield counties. With gathering systems in place in multiple areas, Chief Gathering can move wells to production and sales quickly.
About Chief Oil & Gas LLC
Based in Dallas, Texas, Chief Oil & Gas is a privately held, independent oil & gas company engaged in the exploration, development and production of oil and natural gas throughout the continental United States. For more information, visit www.chiefog.com.
The statements regarding future performance and results and any other statements, which are not historical facts contained in this release are forward-looking statements that involve risks and uncertainties, including, but not limited to market factors of natural gas including the market price, results of future drilling and marketing activity, drilling inventory, future production and costs associated and future processing capacity.