WILLIAMSVILLE, N.Y.--(BUSINESS WIRE)--Jun. 14, 2012--
National Fuel Gas Midstream Corporation (“NFG Midstream”), a wholly
owned subsidiary of National Fuel Gas Company (NYSE: NFG) (“National
Fuel” or the “Company”) has announced that the Trout Run Gathering
System (“Trout Run”), located in Lycoming County, Pa., was placed in
service on May 30, 2012, and is delivering natural gas to an
interconnect with Transcontinental Gas Pipe Line Company, LLC
(“Transco”). Initial production is from four recently completed wells
operated by Seneca Resources Corporation (“Seneca”), the wholly owned
exploration and production subsidiary of National Fuel.
NFG Midstream’s Trout Run system currently consists of approximately 25
miles of mostly 20-inch high-pressure pipeline, associated facilities
and an interconnection with the Transco pipeline system. Trout Run is
designed to serve Marcellus producers, anchored by Seneca, with natural
gas transportation capacity in excess of 450 million cubic feet (“MMcf”)
per day. Additional facilities and gathering lines will be constructed
as throughput increases.
As part of the completion of Trout Run, Seneca initiated production on a
four-well pad located on its DCNR 100 tract in Lycoming County, Pa. As
of June 11, 2012, these four wells are producing at a combined rate of
approximately 45 MMcf per day of natural gas. Peak 24-hour production
rates from these wells had a range of 10.1 to 15.7 MMcf per day. The
wells were drilled with lateral lengths between 5,224 and 8,574 feet. A
three-well pad is currently being completed and two Seneca-operated
drilling rigs are active in the area. In addition to the four wells
currently flowing into Trout Run, the tract has approximately 65
additional well locations.
David F. Smith
, Chairman and Chief Executive Officer of National Fuel,
stated, “The completion of Trout Run in conjunction with initial
production from Seneca’s Lycoming County wells is a testament to not
only the Company’s integrated Appalachian development strategy, but also
the hard work and dedication of our operational teams. The initial
results from these wells confirm our belief that this acreage holds
significant potential and will help drive production growth throughout
the next several years. Additionally, with our two major gathering
systems completed in Pennsylvania, we have built a foundation from which
NFG Midstream can continue to expand its operations for not only Seneca,
but other Appalachian producers as well.”
National Fuel is an integrated energy company with $5.8 billion in
assets comprised of the following four operating segments: Exploration
and Production, Pipeline and Storage, Utility, and Energy Marketing.
Additional information about National Fuel is available at www.nationalfuelgas.com
or through its investor information service at 1-800-334-2188.
Certain statements contained herein, including statements that are
identified by the use of the words “anticipates,” “estimates,”
“expects,” “forecasts,” “intends,” “plans,” “predicts,” “projects,”
“believes,” “seeks,” “will,” “may” and similar expressions, are
“forward-looking statements” as defined by the Private Securities
Litigation Reform Act of 1995. Forward-looking statements involve risks
and uncertainties, which could cause actual results or outcomes to
differ materially from those expressed in the forward-looking
statements. The Company’s expectations, beliefs and projections
contained herein are expressed in good faith and are believed to have a
reasonable basis, but there can be no assurance that such expectations,
beliefs or projections will result or be achieved or accomplished. In
addition to other factors, the following are important factors that
could cause actual results to differ materially from those discussed in
the forward-looking statements: factors affecting the Company’s ability
to successfully identify, drill for and produce economically viable
natural gas and oil reserves, including among others geology, lease
availability, title disputes, weather conditions, shortages, delays or
unavailability of equipment and services required in drilling
operations, insufficient gathering, processing and transportation
capacity, the need to obtain governmental approvals and permits, and
compliance with environmental laws and regulations; changes in laws,
regulations or judicial interpretations to which the Company is subject,
including those involving derivatives, taxes, safety, employment,
climate change, other environmental matters, real property, and
exploration and production activities such as hydraulic fracturing;
changes in the price of natural gas or oil; uncertainty of oil and gas
reserve estimates; significant differences between the Company’s
projected and actual production levels for natural gas or oil;
governmental/regulatory actions, initiatives and proceedings; delays or
changes in costs or plans with respect to Company projects or related
projects of other companies, including difficulties or delays in
obtaining necessary governmental approvals, permits or orders or in
obtaining the cooperation of interconnecting facility operators;
financial and economic conditions, including the availability of credit,
and occurrences affecting the Company’s ability to obtain financing on
acceptable terms for working capital, capital expenditures and other
investments, including any downgrades in the Company’s credit ratings
and changes in interest rates and other capital market conditions;
changes in economic conditions, including global, national or regional
recessions, and their effect on the demand for, and customers’ ability
to pay for, the Company’s products and services; the creditworthiness or
performance of the Company’s key suppliers, customers and
counterparties; economic disruptions or uninsured losses resulting from
major accidents, fires, severe weather, natural disasters, terrorist
activities, acts of war or cyber attacks; changes in price differential
between similar quantities of natural gas at different geographic
locations, and the effect of such changes on the demand for pipeline
transportation capacity to or from such locations; other changes in
price differentials between similar quantities of oil or natural gas
having different quality, heating value, geographic location or delivery
date; or significant differences between the Company’s projected and
actual capital expenditures and operating expenses. The Company
disclaims any obligation to update any forward-looking statements to
reflect events or circumstances after the date thereof.
Source: National Fuel Gas Company
National Fuel Gas Company
Analysts:
Timothy J.
Silverstein, 716-857-6987
or
Media:
Donna L.
DeCarolis, 716-857-7872