CNX Gas Provides Data on Marcellus Vertical with Earnings Call

CNX Gas brought its first Marcellus well online last Friday. The vertical well was drilled to a depth of about 8,000 feet at an estimated cost of $1.3 million. Shale thickness is 80 feet. The well was stimulated with a single-stage water frac resulting in a flow rate of 1.3 MMcf per day on a 56/64" choke and 50 pounds of back pressure. Because of the strong initial reading, a 24-hour open flow test was not necessary. Instead, the well was immediately placed online where it is currently equilibrating and generating a choke-back pressure of 2,300 pounds. During this morning's conference call it was noted that in the few days since the press release was drafted, flow data to the meter has improved from 480 mcfd to 850 mcfd.

Randy Albert, senior vice president-emerging business units noted, "CNX Gas brought its first Marcellus well online two weeks after it was fraced, with no rig, well service, water treatment, or gas transmission issues. Just simple and efficient execution. This continues to be the hallmark of CNX Gas as we manage and drill our portfolio across the Appalachian and Illinois basins."

Full Story at http://money.cnn.com/news/newsfeeds/articles/prnewswire/200807300730PR_NEWS_USPR_____NEW011.htm

Mr. McClendon Goes to Washington

Aubrey McClendon, Chairman & CEO of Chesapeake Energy, is making the rounds on Capitol Hill today armed with a new study showing that US natural gas reserves are 50% higher than recently thought and equate to 118 years (2,247 tcf) of supply. He follows T. Boone Pickens in a quest to make natural gas the primary fuel to lead us away from foreign sources of energy. He also appeared on CNBC this morning to discuss the findings.

According to McClendon, whose company helps funds the foundation, the new study is a real time analysis that includes current assessments of the major shale plays in the US. The study was done by Navigant Consulting.

Full Story at http://www.accountability-central.com/single-view-default/single-view-lexis-nexis/article/study-raises-estimates-of-us-natural-gas-reserves-could-be-50-bigger/?tx_ttnews%5BbackPid%5D=1&cHash=fd08742dd4
Video at http://www.cnbc.com/id/15840232?video=807915389

Talisman Increasing North American Unconventional Exploration

Talisman Energy announced that it has increased it's capital budget and drilling program for North America from $1B to $1.5B and from 130 wells to 160. Allocation to the Marcellus was not disclosed but the company reported having mobilized its first dedicated rig to the play. Through its partner (presumably Fortuna),one horizontal and two verticals were completed in the Marcellus with very favorable results and are in the cleanup phase.

Full Story at http://cnrp.ccnmatthews.com/client/talisman_energy/release.jsp?actionFor=883544&year=2008&releaseSeq=0&disclaimer=1

It's Not Easy Being Green

Scrambling for a seat at the Marcellus table, several environmental groups have asked New York Governor David Paterson for a moratorium on natural gas drilling until the environmental review that he promised has been completed. The signatories are the Catskill Mountainkeeper, Sierra Club Atlanta Chapter, Riverkeeper, Delaware Riverkeeper Network, Natural Resources Defense Council, Catskill Center for Conservation and Development, The Wilderness Society, and Catskill Citizens for Safe Energy.

Full Story at http://www.nytimes.com/2008/07/27/nyregion/27towns.html?ref=nyregion