EOG Resources flow tested a Marcellus Shale well at an average rate of over 3.0 million cubic feet per day for 7 days. Seneca Resources Corp., a wholly-owned subsidiary of National Fuel Gas Co. holds a 50% working interest and a 60% net revenue interest in the well.
Matthew D. Cabell, president of Seneca, stated, "This flow test confirms our expectations for the potential of our Marcellus Shale position, most of which is fee mineral acreage, where we pay no royalty. This is a tremendous opportunity for Seneca, and as the primary focus of our E&P activities, we expect the Marcellus Shale to provide significant growth in production and reserves for many years. We are currently fracture-stimulating another well and expect flare testing to begin by the end of the month. Later in the summer, we expect to discuss the results from that next well, and, once we have more data-in-hand, we may be in a position to discuss an estimate for the range of Marcellus Shale resource potential across our extensive acreage position." Seneca plans to operate 10 vertical wells and two to three horizontal wells in fiscal 2009, and participate in another eight to 10 wells to be operated by EOG Resources.
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