By OGJ editors
HOUSTON, Feb. 26 -- Atlas Energy Inc., Pittsburgh, said it has identified more than 3,150 horizontal Marcellus shale drilling locations on its acreage from which it estimates the net incremental recovery is 13 tcf of gas equivalent.
The figures assume 1,000-ft spacing between laterals, and Atlas noted that downspacing could result in more horizontal locations and reserve potential.
The company listed 1.02 tcfe of proved reserves. Its reserve report includes 73 Marcellus shale horizontal locations as proved developed. Atlas replaced more than 8.5 times its production in 2009.
About 52% of the company’s proved reserves, and 99% are natural gas. Most of its Marcellus properties are in southwestern Pennsylvania.
Atlas incurred total capital costs of $109 million drilling and completing wells in 2009, which was comprised of its own investments in drilling partnerships it sponsored as well as the cost of wells drilled directly for its own account.
In 2010, having improved cash flow through in a transformation from a master limited partnership making large distributions into an operating entity reinvesting cash flow in operations, Atlas plans to hike its reserves and cash flow at an increased rate by drilling most horizontal Marcellus shale wells for its own account, the company said.
None of the proved undeveloped locations in the company’s 2009 reserve report are more than one offset away from another proved undeveloped location, although farther offsets are permitted by new federal rules.
In Appalachia, Atlas Pipeline Partners LP is a 49% joint venture partner with Williams Cos. in Laurel Mountain Midstream LLC, which manages the gas gathering system in that region, namely from the Marcellus shale in southwestern Pennsylvania.
Atlas sees 13 tcfe net Marcellus recoverable
By OGJ editors