EQT increases proved reserves by 31% to 4.1 Tcfe

EQT Corporation (EQT) today reported year-end 2009 total natural gas proved reserves of 4,068 Bcfe. This represents a 31% net increase over the 3,110 Bcfe the company reported last year. Proved reserves increased primarily in the Marcellus and Huron/Berea plays as a result of its 2009 drilling program. In addition, the application of new Securities and Exchange Commission (SEC) oil and gas reporting rules permitted the booking of proved undeveloped reserves (PUDs) in locations more than one offset away from existing wells. Partially offsetting these reserve additions, EQT also reported a reduction of CBM/other reserves as a result of removing previously booked vertical locations. 

EQT estimates year-end 2009 total natural gas reserves, including proved, probable and possible reserve categories (3P), at 12.5 Tcfe. This marks a 32% net increase over EQT's 2008 total of 9.5 Tcfe. This increase was driven mainly by the success of the company's Marcellus and Huron/Berea horizontal drilling programs. Probable reserves increased by 69% to 5.6 Tcfe and include 2.1 Tcfe of reserves from locations that would have been classified as proved, however their presumptive scheduled development is beyond the five year SEC requirement. 

The company's drill bit reserve replacement ratio was 1,104% from 1,159 Bcfe of extensions, discoveries and other additions, with a drill bit reserve replacement cost of approximately $697.1 million, or $0.60 per Mcfe. The company's total proved reserve replacement ratio, including revisions, was 1,013% from 1,063 Bcfe of additions. All-in replacement costs, including $24.9 million in acquisitions of unproved properties in Pennsylvania, totaled $722 million, or $0.68 per Mcfe. For the three year period from 2007 through 2009, EQT's drill bit reserve replacement ratio was 741% at a drill bit reserve replacement cost of $0.79 per Mcfe. The three-year total proved reserve replacement ratio, including revisions, was 664% at an all-in replacement cost of $0.94 per Mcfe.

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