Activity in Millwood Township (Guernsey)

Information about drilling activity, pipelines, etc. in Millwood Township.

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Permalink Reply by Philip Brutz on January 5, 2016 at 5:23am

http://www.businesswire.com/news/home/20160104006469/en/

Eclipse Resources Fourth Quarter 2015 Operational Update and Conference Participation

January 04, 2016 04:50 PM Eastern Standard Time

STATE COLLEGE, Pa.--(BUSINESS WIRE)--Eclipse Resources Corporation (NYSE:ECR) (the “Company”) today is pleased to provide an operational update, its initial outlook on the First Quarter 2016 guidance and capital budget and the participation of members from the Company’s executive management team in the following upcoming investor conferences:

  • Wednesday January 6, 2016 through Thursday January 7, 2016 (Miami, FL)- Goldman Sachs Global Energy Conference. Benjamin W. Hulburt (Chairman, President and CEO) and Matthew R. DeNezza (Executive Vice President and CFO) will host one-on-one meetings.
  • Thursday January 13, 2016 (Boston, MA)- BMO Capital Markets Energy Forum. Benjamin W. Hulburt (Chairman, President and CEO) and Matthew R. DeNezza (Executive Vice President and CFO) will host one-on-one meetings.

The Company has posted an updated corporate presentation on the Company website at www.eclipseresources.comwhich includes information contained in this release as well as additional updated information.

Operational Update

The Company continues to closely monitor the commodity price environment, and the Company currently plans to minimize its drilling and completion activity until commodity prices improve. Despite its drilling cessation, which the Company initiated in November of 2015, the Company believes it is on pace to exceed the high end of its fourth quarter 2015 and full year production guidance range. Based on preliminary estimates, which are subject to change as final sales figures are determined, the Company currently anticipates that it exited 2015 with approximately 268 MMcfe per day of net production with fourth quarter 2015 average net production of at least 236 MMcfe per day, and full year 2015 average net production of approximately 206 MMcfe per day. Additionally, the Company estimates that it exited the year with $281 million in liquidity derived from its undrawn revolving credit facility and cash on hand of approximately $184 million.

The Company is pleased to announce that it placed all seven of its Fuchs/Dietrich wells in the Utica Shale Dry Gas East area into sales during the fourth quarter of 2015. These seven wells were drilled with lateral lengths ranging from approximately 7,450 feet to 10,520 feet (average lateral length of approximately 8,800 feet) and were completed using what the Company currently believes to be an “optimized” frack design. The wells have been placed into sales and were produced at the Company’s Type Well target rate with initial casing pressures of 7,500-8,000 psi.

Given the lower current market prices for both natural gas and oil, coupled with the uncertain outlook in the near term, the Company is focusing its initial 2016 plan on limiting cash outlays on drilling while allowing for greater productivity as prices rebound. To implement this strategy, the Company has begun voluntarily reducing its aggregate operated production to attempt to maintain net production at approximately the same level as its 2015 average, or approximately 200 MMcfe per day, until commodity prices recover. As the Company has both liquids/condensate rich and dry natural gas production areas currently producing the Company plans to adjust its production mix according to changes in the commodity prices for the near term. The Company believes these measures are prudent given the significant decline in oil and natural gas prices as they will enable the Company to maintain sufficient cash flows to meet its obligations, limit use of cash on hand for drilling expenses, avoid selling its valuable products in a depressed price environment and return to its historic production growth profile as commodities begin to rebound in the future.

For the first quarter 2016, the Company anticipates capital expenditures of approximately $33 million, which will include the drilling and completion of 1 net, extended reach well along with associated land and non-operated activity that was commenced in the fourth quarter of 2015. The Company will focus on managing production based upon wells that demonstrate the best variable margin in the current commodity price environment. The table below outlines Eclipse Resources’ first quarter 2016 guidance along with the previously announced fourth quarter and full year 2015 guidance.

      Q4 2015       FY 2015       Q1 2016
Production Mmcfe/d 225 ‐ 235 202 ‐ 205 ~200
% Gas 68% ‐ 74% 64% ‐ 66% 73%-80%
% NGL 16% ‐ 18% 18% ‐ 20% 15%-17%
% Oil 10% ‐ 14% 15% ‐ 17% 6%-10%
Gas Price Differential1 $(0.12) ‐ $(0.22) $(0.12) ‐ $(0.15) $(0.10) - $(0.20)

FT Expense

$(0.38) ‐ $(0.49)

$(0.30) ‐ $(0.34)

 $(0.40) - $(0.50)

Gas Price Differential with FT expense1

 $(0.50) ‐ $(0.71) $(0.42) ‐ $(0.49) $(0.50) - $(0.70)
Oil Differential1 $(11.00) ‐ $(13.00) $(11.25) ‐ $(12.25) $(11.25) - $(12.25)
NGL % WTI 15% ‐ 25% 20% ‐ 24% 20% -30%
Operating Expenses ($/Mcfe)2 $1.32 ‐ $1.37 $1.28 ‐ $1.33 $1.35 -$1.45
Cash G&A ($mm)3 $10 ‐ $12 $45 ‐ $47 $11 - $12
CAPEX ($mm)4,5 $330 $33
       
1. Excludes impact of hedges
2. Excludes firm transportation, DD&A, exploration, and general and administrative expenses
3. Excludes costs associated with rig terminations
4.

Includes routine lease acquisition, land related expenses, and net of projected midstream reimbursements; excludes land and producing asset acquisitions
5. Includes delay rental payments which are classified as exploration for financial reporting purposes
 

Commenting on the Company’s operations, Benjamin Hulburt, Chairman, President and CEO said, “As natural gas prices hover around fifteen year lows, I believe we are making the financially prudent decision regarding our significantly decreased capital spending plan and the curtailment of our production. Although we are not setting a capital budget for the year at this time, we currently anticipate that our ultimate capital plan, absent a significant increase in commodity prices, will be constructed with the objective of ending 2016 with a cash balance and no new debt drawn. As well, this plan will allow the Company flexibility to adjust which wells are curtailed throughout the year based on operating costs, volume commitments and commodity prices.”

Permalink Reply by David Allen Lilly on January 6, 2016 at 1:51am

Yesterday I went outside to find a surveyor in front of my house. We talked a little while and he told me that they were doing work necessary to widen the access road to the McClain well pad because the pipeliners were going to use it as access for the new pipeline to connect the units to the others on Oxford road.

So it appears Chesapeake is actually going to build their own pipeline. I wonder if the row's will be used from other row's that were obtained for the Mark West pipeline that runs right by the well site ?

Anyway, I am glad my lease specifically forbids being charged for building pipelines and the transmission of the well products.

Just what we wanted, more pipeliner traffic. Those guys are the worst.

Permalink Reply by evan on January 6, 2016 at 9:54am
They are paying for their own ROW. Not using Mark West
Unfortunately we will be the ones that pay for it , you just won't know it.
Permalink Reply by David Allen Lilly on January 6, 2016 at 3:01pm

I think you under estimate me, and my lease. I don't have a Herb McClain lease, I have a good one.

Permalink Reply by evan on January 7, 2016 at 1:06am
Your lease couldn't t have been very good for Antero to flip you to Eclipse without your consent. No you have no idea how these companies work. Wait till you get a royalty check. You will soon learn. Good lease or not you will not stop them from doing what they want.
Permalink Reply by Fast on January 13, 2016 at 9:35am
Hi Evan,
I was wondering if you received your check from Eclipse? I know checks are cut at the end of the month. We have not received our check yet. Any information would be appreciated.
Thank you
Permalink Reply by Jeffrey Stoll on January 13, 2016 at 9:38am

Checks went out Monday and I know my neighbor got theirs today.  I usually get mine the same day and it should be in the box when I get home

Permalink Reply by Fast on January 13, 2016 at 9:41am
Thank you for the information. It is much appreciated.
Permalink Reply by evan on January 13, 2016 at 9:45am
As of now with me laying on the couch and already checking the mail the answer is no. Not sure the holdup. The good news is maybe if this months checks are cut the 25th the sting will hurt less. Their coming to do a route for the waterline for the Purple Hayes tomorrow I guess. So maybe they will hand deliver if not I guess we won't look at the route
Permalink Reply by Fast on January 13, 2016 at 9:49am
I'm sure it's on its way. If they need something from you they won't keep your money.
Permalink Reply by GW3 on January 13, 2016 at 11:16am
good luck ,eclipse told us that some owners will be getting letters stating they overpayed or did not take enough deductions out.. some wont be getting any checks at all ,just letter explaining why .. needless to say we retained our lawyer .. just give it a few more days
Permalink Reply by Fast on January 13, 2016 at 11:27am
Have to pay lawyer to get your money. I think something seriously wrong.

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