EQT presses Marcellus, phases out Huron drilling

EQT Corp., Pittsburgh, has reported yearend 2011 reserves of 5.365 tcf equivalent compared with 5.22 tcfe a year earlier as it emphasizes Marcellus shale drilling and phases out Huron operations during 2012.

EQT Corp., Pittsburgh, has reported yearend 2011 reserves of 5.365 tcf equivalent compared with 5.22 tcfe a year earlier as it emphasizes Marcellus shale drilling and phases out Huron operations during 2012.

The estimated ultimate recovery of proved developed Marcellus wells averaged 5.7 bcfe in 2011 with an average pay length of 4,050 ft, while proved undeveloped Marcellus wells averaged 6.3 bcfe with a 3,765-ft average length.

Partly offsetting Marcellus reserve additions was the elimination of Huron proved undeveloped reserves consistent with the company’s decision to suspend development of this play as current wells are completed and placed on line (OGJ Online, Jan. 28, 2011). Lower gas prices, the resultant reduction in projected cash flow, and the decision to live within its means financially drove that decision.

EQT estimated end-2011 combined proved, probable, and possible reserves at 21.4 tcfe.

The company spudded 222 wells in 2011, including 105 Marcellus wells and 115 Huron wells. The company includes the Lower Huron, Cleveland, Berea sandstone, and other Devonian shales except Marcellus in its Huron play.

The company’s 2011 production sales volumes of 194.4 bcfe were up 44.4% on the year and came 42% from Marcellus wells. EQT reduced the 2012 sales volumes forecast by 5 bcfe to 250-255 bcfe to reflect the decision to suspend Huron drilling in the current price environment. The 2011 wellhead sales price averaged $5.37/Mcfe.

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