WILLIAMSVILLE, N.Y.--(BUSINESS WIRE)--Nov. 27, 2012--
Seneca Resources Corporation (“Seneca”), the wholly owned exploration
and production subsidiary of National Fuel Gas Company (NYSE: NFG)
(“National Fuel” or the “Company”) today provided an update on its
program to assess the Utica Shale formation, as a second producing
horizon underlying much of its Marcellus Shale acreage in western
Pennsylvania.
In Forest County, Pa., Seneca has flow tested its first horizontal Utica
Shale well at a peak 24-hour rate of 3.9 million cubic feet per day.
Initial testing on this well began on Nov. 11, 2012 and lasted for six
days. Currently, this well is shut-in while awaiting pipeline
infrastructure and is expected to begin production in the second quarter
of fiscal 2013. Thus far, Seneca has drilled two horizontal and three
vertical exploration wells into the Utica Shale formation. The second
horizontal well, located in the Mt. Jewett prospect area in McKean
County, Pa., currently has three frac stages complete and the ability to
complete additional stages is under evaluation.
“The Utica Shale represents a great opportunity for National Fuel given
its presence across a significant portion of our Appalachian acreage,”
said
David F. Smith
, Chairman and Chief Executive Officer of National
Fuel. “In addition to our second delineation well that was drilled
earlier this year in Mt. Jewett, we remain committed to further
evaluation of the Utica’s potential. Two additional horizontal wells in
Pennsylvania are planned during this fiscal year, one in the Owl’s Nest
prospect area of Elk County, and another in the Henderson prospect area
of Venango and Mercer counties. These delineation efforts will help us
to further understand the extent, the characteristics, and the economics
of the Utica across our acreage and the potential of the Utica to add to
the value of our already attractive Marcellus Shale footprint.”
National Fuel is an integrated energy company with $5.9 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 identified by
the use of the words “anticipates,” “estimates,” “expects,” “forecasts,”
“intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,”
“may” and similar expressions, and statements which are other than
statements of historical facts, 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 taxes, safety,
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; impairments under the SEC’s
full cost ceiling test for natural gas and oil reserves; 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 performance of the
Company’s key suppliers counterparties; or economic disruptions or
uninsured losses resulting from major accidents, fires, severe weather,
natural disasters, terrorist activities, acts of war or cyber attacks.
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
Investor Relations
Timothy J.
Silverstein, 716-857-6987
or
Media
Karen L. Merkel,
716-857-7654