Source: Atlas Energy
Atlas Energy, Inc. (NASDAQ:ATLS) reported that average net production in the company’s Appalachian business unit reached a record 63.3 million cubic feet of natural gas equivalents (“Mmcfe”) per day in the third quarter 2010, representing a 53.2% increase year over year and a 15.4% increase from the second quarter 2010.
Total Company average net production reached 118.3 Mmcfe per day in the third quarter 2010, up 18.4% over the prior year and 7.7% from the prior quarter. This growth reflects increasingly strong results from the Company’s development of its leading Marcellus Shale position in southwestern Pennsylvania.
During the third quarter, Atlas drilled 19 horizontal Marcellus Shale wells. During this period, the company fractured and completed 12 wells, of which 6 wells were turned into line.
These results exceeded the Company’s budget. The average initial peak rate of production from the 12 horizontal Marcellus Shale wells completed in the quarter was 6.8 Mmcfe per day, and included a well in Westmoreland County that reached a Company-record initial rate of production of 21 Mmcf per day. This well is a step out from existing infrastructure and is not expected to be turned into line until the second quarter of 2011.
Four of the other wells, which were completed, but not yet turned into line during the third quarter, will be turned into line during October, while the last well is also waiting on pipeline and will be turned into line in 2011.
“Our strong operating results and well performance in the third quarter exceeded our earlier estimates and reflect the quality of our acreage, the relatively shallow decline of our wells and the contribution of our new hires and the quality of our senior operating team,” stated Richard D. Weber, President of Atlas Energy, Inc.