Monday, March 31, 2008

Appalachian Basin’s Marcellus – the new target

a technical paper from Penn State and SUNY-Fredonia, estimating original gas in place at 168-516 Tcf and recoverable reserves of as much as 50 Tcf, got picked up by USA Today.

Several of the major independents, including Range Resources (RRC) and Chesapeake Energy (CHK), have large acreage positions and drilling programs. Among the smaller independents, the most relatively outsized acreage positions include those of Atlas Energy Resources (ATN), Cabot Oil & Gas (COG), Linn Energy (LINE), Exco Resources (XCO), and Rex Energy (REXX). Essentially all the participants are reporting good-to-excellent results from increasingly aggressive capex programs, including horizontal drilling.

RRC has 650,000 net acres in the play out of 1.1M acres in the Marcellus trend and estimates its net unrisked reserve potential at 10-15 Tcf.

No comments: