Category Archives: Uinta

Consol puts focus on dry Utica play as wet-gas prices decline

Consol Energy Inc.’s strategy is going to include a lot more dry-gas development in the Utica Shale as some of the economics of the basin have shifted away from the wet-gas areas of the Marcellus Shale.”We believe the Utica will make up a larger portion of Consol’s development plans in the future,” COO Timothy Dugan told a crowd of industry executives at the DUG East natural gas conference in downtown Pittsburgh.Consol (NYSE: CNX) halted its drilling program in 2015 as commodity prices declined. It has yet to resume drilling in Pennsylvania, Ohio or West Virginia, where it has one of the largest acreages among exploration and production companies in the Appalachian Basin. Consol has signaled that it is close to making a decision as to when it will resume drilling, perhaps as early as the second half of this year. But no announcement was made today, and Dugan declined to say when drilling might resume or whether a rig would first go into the Utica or Marcellus shales.

Source: Consol puts focus on dry Utica play as wet-gas prices decline – Pittsburgh Business Times

Ultra to Escalate NatGas Operations in Rockies, Ignore Marcellus

With natural gas pricing differentials continuing to accentuate the negative in the Appalachian Basin, Ultra Petroleum Corp. plans to continue to escalate operations in the Rockies while continuing to decrease operations in the Marcellus Shale, CEO Mike Watford said last week.”Our production mix is changing, with increasing higher-returning oil being added while natural gas production overall grows modestly, with a clear goal of increasing Western basin production and decreasing Eastern basin production,” he told analysts during a conference call to discuss 2Q2014 results.”Price discounts on our oil is decreasing, as is the basis differential on Western basin gas. Eastern basin gas differentials are expanding significantly. So on a relative basis, our margins should be improving as we enter the second half of the year…We continue to be constructive on natural gas demand going forward, particularly 2016 and beyond.”The Houston-based independent reported net income of $106,049 million 69 cents/share in 2Q2014, versus $116,377 million 76 cents in 2Q2013. Operating cash flow rose year/year to $145,086 million from $135,064 million. Total operating revenue of $296.1 million in the latest period easily beat year-ago numbers of $261.4 million, mostly on higher oil prices.Once a gas-only operator, Ultra’s total oil and gas production in the period increased marginally to 58.5 Bcfe from 58.4 Bcfe. Gas volumes, which account for around 92.2% of Ultra’s output, fell 4.6% to 54 Bcf. However, oil production increased 153.7% year/year to 758,844 bbl.”Our oil and natural gas production is growing again,” said Watford. “But more importantly, we are generating healthy returns.” The company’s crude oil investments are returning 400-500% internal rates of return, “with an impressive payout period of months, not years.

via Ultra to Escalate NatGas Operations in Rockies, Ignore Marcellus | 2014-08-04 | Natural Gas Intelligence.