Consol reports 2012 gas drilling activity

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CANONSBURG – Consol Energy Inc. said Thursday that it added 954 billion cubic feet of proved natural gas reserves through extensions and discoveries during 2012.


The Southpointe-based company said in a press release its estimate of drilling and completion costs incurred during 2012 directly attributable to extensions and discoveries was $440.7 million. When divided by the extensions and discoveries of 954 Bcfe, this yields a drill bit finding and development cost of $0.46 per mcfe.


Consol noted that 2012 was the third consecutive year that it has achieved sub-$0.50 per mcfe drill bit finding and development costs. The company said it believes this is among the lowest in the industry.


Total proved reserves, as of Dec. 31, were a record 3.993 trillion cubic feet, which the compapny said represents a 15 percent increase from the 3.480 Tcfe at year-end 2011. Within the total proved reserves are approximately 88 Bcfe, or 2.2 percent, of oil, condensate, and liquids.


Marcellus Shale reserves account for approximately 83 Bcfe, or 94 percent, of these heavier hydrocarbons.


Consol said it replaced 611 percent of its 2012 gas production, when considering increases from extensions and discoveries of 954 Bcfe. Production in 2012 was 156 Bcfe.


The company said much of the increase in reserves through the category extensions and discoveries was due to the company’s highly successful Marcellus Shale program. As of Dec. 31, the Marcellus Shale consisted of 1,805 Bcfe of proved reserves, a a 105 percent increase from the 882 Bcfe shown at year-end 2011.


Marcellus Shale proved developed reserves were 427 Bcfe, or an increase of 79 percent from 239 Bcfe, over the same period.


As reported on Jan. 18, 64 Consol-operated horizontal wells were drilled in the Marcellus Shale in 2012 and 51 were turned on line. Total well costs averaged $6.7 million. The expected ultimate recovery averaged 5.9 Bcfe per well.


Total daily production from the Marcellus Shale grew from 77.5 MMcf per day as of Dec. 31, 2011 to 135.0 MMcf per day as of Dece. 31, 2012.


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