Consol sees gas reserves nearly double

Posted March 9, 2011

Business briefs

CANONSBURG - Consol Energy Inc. said Tuesday its proved gas reserves nearly doubled in 2010.

In a news release, Southpointe-based Consol said its proved reserves ended 2010 at 3.7 trillion cubic feet, an increase of 1.8 Tcf, or 95 percent, from the 1.9 Tcf reported at year-end 2009.

The company said its proved developed reserves increased by 86 percent and the proved undeveloped reserves increased 107 percent. Of the 3.7 Tcf of proved reserves, 52 percent are categorized as proved developed and 48 percent are classified as proved undeveloped.

Consol said it invested $255.7 million in drilling capital in 2010, which yielded extensions and discoveries of 621.3 Bcf, resulting in a drill bit finding cost of 41 cents per Mcfe.

As reported Jan. 27, Consol drilled 24 horizontal wells in the Marcellus Shale in 2010, with 13 turned on line. Total well costs averaged $4.1 million. Total daily production from the Marcellus Shale grew from 14 million cubic feet per day as of Dec. 1, 2009, to 40 MMcf per day as of Dec. 31, 2010.

The company said drilling capital in 2011 is expected to total $475 million. Consol said it expects to invest $225 million for development drilling in its Virginia coalbed methane and Marcellus Shale in Southwestern Pennsylvania. An additional $215 million is planned for delineation drilling, including Marcellus Shale drilling in Central Pennsylvania and Northern West Virginia. The company expects to drill 70 horizontal wells in the Marcellus Shale in 2011.

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