EQT to press Marcellus over Huron, other plays

By OGJ editors
HOUSTON, Jan. 28 -- EQT Corp., Pittsburgh, will increase the projected number of Marcellus shale wells to be drilled in the next 5 years while anticipating reduced investment in the Huron shale, coalbed methane, and other plays in the same period.

In reporting that it replaced more than nine times its 2010 production, EQT ended the year with 5.22 tcfe of proved reserves, a 28% net increase from the end of 2009. Its proved, probable, and possible reserves totaled 21.177 tcfe, up 70%.

The 2010 reserves increases were driven mainly by the success of the company’s Marcellus and to a lesser extent its Huron horizontal drilling programs. The company includes the Lower Huron, Cleveland, Berea sandstone, and other Devonian shales except Marcellus in its Huron play.

Marcellus proved reserves grew to 2.879 tcfe at the end of 2010 from 1.061 tcfe a year earlier, while Huron proved reserves fell to 1.475 tcfe from 2.016 tcfe. EQT said Huron and CBM/other reserves previously booked as proved undeveloped have been removed because they will not be developed in the next 5 years.

Sales of produced natural gas were a record 134.6 bcfe, 34.5% higher than in 2009 and 48% derived from horizontal shale wells. Daily sales from Marcellus wells was 142 MMcfd at the end of 2010 and is expected to exceed 250 MMcfd by the end of 2011.

The company drilled 489 gross wells, 326 of them horizontal, including 236 Huron play wells with 3,850 ft typical pay length and 90 Marcellus wells at 3,735 ft. EQT drilled 95 wells for CBM, mostly in Nora field in Virginia.