EQT Increases EUR in Its Core Marcellus Acreage
Updated Investor Presentation Available
PITTSBURGH--(BUSINESS WIRE)-- EQT Corporation (NYS: EQT) today released updated information, including increased estimated ultimate recovery (EUR) rates, estimated drilling locations, and projected type curves, for its core Marcellus acreage in southwestern and central Pennsylvania, and northern West Virginia. Details for each of the three core geographic areas can be found in the updated investor presentation, available electronically via www.eqt.com.
EQT holds approximately 95,000 acres in this prolific dry gas region of the Marcellus, which includes Greene, Washington, and Allegheny Counties. Utilizing reduced cluster spacing on at least 90% of the wells, EQT anticipates 1,080 well locations throughout the region. Based on a 4,800 foot lateral length, the EUR is 9.8 Bcfe per well or 2,050 Mcfe EUR per lateral foot. As of March 31, 2013, EQT had 109 wells online, with plans to drill 56 wells by year-end.
Northern West Virginia
EQT holds approximately 90,000 acres across the liquids rich counties of Doddridge, Wetzel, Ritchie, and Tyler. EQT expects to use reduced cluster spacing on 100% of the wells, which will yield at least 1,065 well locations. Based on a 4,800 foot lateral length, and including an estimated 1.9 Bcfe per well uplift from liquids (excluding Ethane), the EUR is 9.8 Bcfe per well or 2,035 Mcfe EUR per lateral foot. As of March 31, 2013, EQT had 86 wells online and plans to drill 84 wells by year-end.
EQT will focus near-term dry gas development on approximately 80,000 acres in Armstrong, Clarion, Jefferson, Elk, Cameron, Clearfield, and Tioga Counties. EQT expects to use reduced cluster spacing on 100% of the wells, which will yield at least 727 well locations. Based on a 4,800 foot lateral length, the EUR is 6.6 Bcfe per well or 1,375 Mcfe EUR per lateral foot. As of March 31, 2013, EQT had 34 wells online, with plans to drill 17 wells by year-end.
EQT has a total of 3.5 million acres - 560,000 of which are located in the Marcellus. In recent years, EQT's Marcellus development has been focused on the above-mentioned three core areas, which represent 265,000 acres. As EQT steps out development from its core areas, the remaining 295,000 acres will be delineated over time; with preliminary estimates of 1,235 Mcfe EUR per lateral foot for wells drilled on this acreage.
About EQT Corporation:
EQT Corporation is an integrated energy company with emphasis on Appalachian area natural gas production, gathering, transmission, and distribution. EQT is the general partner and majority equity owner of EQT Midstream Partners, LP. With more than 120 years of experience, EQT is a technology-driven leader in the integration of air and horizontal drilling. Through safe and responsible operations, the Company is committed to meeting the country's growing demand for clean-burning energy, while continuing to provide a rewarding workplace and enrich the communities where its employees live and work. Company shares are traded on the New York Stock Exchange as EQT.
Visit EQT Corporation on the Internet at www.EQT.com.
EQT's approximately 560,000 Marcellus acres include approximately 25,000 developable acres within EQT's Southwestern Pennsylvania development area that EQT expects to acquire from Chesapeake Energy Corporation. An additional 42,000 Marcellus acres to be acquired are unlikely to be developed due to near-term lease expirations or a scatted footprint.
The United States Securities and Exchange Commission (SEC) permits oil and gas companies, in their filings with the SEC, to disclose only proved, probable and possible reserves that a company anticipates as of a given date to be economically and legally producible and deliverable by application of development projects to known accumulations. We use certain terms in this press release, such as "EUR" (estimated ultimate recovery), that the SEC's guidelines prohibit us from including in filings with the SEC. This measure is by its nature more speculative than estimates of reserves prepared in accordance with SEC definitions and guidelines and accordingly is less certain.
Disclosures in this press release contain forward-looking statements. Statements that do not relate strictly to historical or current facts are forward-looking. Without limiting the generality of the foregoing, forward-looking statements contained in this press release specifically include the number of developable acres expected to be acquired by EQT from Chesapeake Energy Corporation, the number of estimated drilling locations, EUR, including liquids uplift, type curves and projected well drilling plans for EQT's Marcellus acreage, including geographic areas of focus, the number of wells to be drilled, feet of pay, well spacing and the use of reduced cluster spacing. These statements involve risks and uncertainties that could cause actual results to differ materially from projected results. Accordingly, investors should not place undue reliance on forward-looking statements as a prediction of actual results. The company has based these forward-looking statements on current expectations and assumptions about future events. While the company considers these expectations and assumptions to be reasonable, they are inherently subject to significant business, economic, competitive, regulatory and other risks and uncertainties, most of which are difficult to predict and many of which are beyond the company's control. The risks and uncertainties that may affect the operations, performance and results of the company's business and forward-looking statements include, but are not limited to, those set forth under Item 1A, "Risk Factors" of the company's Form 10-K filed for the year ended December 31, 2012, as updated by any subsequent Form 10-Qs.
Any forward-looking statement speaks only as of the date on which such statement is made and the company does not intend to correct or update any forward-looking statement, whether as a result of new information, future events or otherwise.
EQT Analyst inquiries
Patrick Kane - Chief Investor Relations Officer, 412-553-7833
Nate Tetlow - Manager, Investor Relations, 412-553-5834
EQT Media inquiries
Natalie Cox - Corporate Director, Communications, 412-395-3941
KEYWORDS: United States North America Pennsylvania West Virginia
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