From CONSOL Energy today:
"Despite the potential for distractions during a quarter with a major asset transaction,
In our gas business, our goals for 2013 included further reducing drilling costs per lateral foot drilled in both the Marcellus and
On the drilling side, CONSOL satisfied its 2013 goal of reducing costs per lateral foot drilled by identifying and minimizing the relative proportion of nonproductive time such as mobilizing rigs, running casing, and waiting on cement. In 2013, the cost per lateral foot was
CONSOL's Gas Division produced 48.5 Bcfe for the 2013 fourth quarter, or 16% more than the 41.8 Bcfe produced in the 2012 fourth quarter. Annual 2013 gas production was 172.4 Bcfe (net to CONSOL).
CONSOL's Coal Division produced 7.1 million tons for the fourth quarter of 2013, including 1.2 million tons of low-vol coking coal from the company's
During the fourth quarter of 2013, CONSOL's total coal inventory remained unchanged at 0.6 million tons as of
Gas Division Operations
For 2013, the Gas Division worked the entire year without a lost-time incident, continuing its streak dating back to 1994. In the area of compliance, CONSOL's Gas Division saw violations increase by over 21%, from 38 to 46 compared to the previous year.
During the fourth quarter,
Towards its 2013 goal of increased completion effectiveness, CONSOL continued to utilize enhanced recovery techniques through SSL and RCS, in Q4 2013, and total completion stages for 2013 increased by 58% compared to the previous year. The early results of these enhanced recovery techniques in Southwest Pa. have been very promising. In the fourth quarter of 2013, initial 24-hour production rates were as high as 18 MMcf/d and averaged 12 MMcf/d for the wells brought online. Also, four of these wells averaged over 10 MMcf/d for 30 days. The wells completed in this manner have shown initial production rates improving by as much as 40%, which the company believes will translate into potential increases to well EURs of 15%-20%. We will provide more details in our year-end 2013 reserve report, which we plan to issue around
Southwest Pa.: During the fourth quarter, CONSOL drilled six wells in
Washington County. In 2013, CONSOL drilled 26 wells in Southwest Pa.
CONSOL Energycurrently has one horizontal rig operating and expects to add a second rig during the year. In 2014, CONSOL plans to drill 44 wells in Greeneand Washingtoncounties with an expected average drilled lateral length of 6,600 feet.
CONSOL's first Upper Devonian well, the NV 39F, which was drilled in the
Burkett Shaleand turned in line in June 2013, continues to demonstrate a shallow decline rate and an EUR in the range of 5-6 Bcfe. CONSOL expects to drill five additional Burkett Shalewells in 2014, as well as one Rhinestreet Shaleformation.
Central Pa.: During the fourth quarter, CONSOL drilled five wells in Westmoreland County. In 2013, CONSOL drilled 10 wells in Central Pa.
CONSOL Energycurrently has one horizontal rig operating. In 2014, CONSOL plans to drill nine wells in the Mamont Field of Westmoreland Countywith an expected average drilled lateral length of 6,700 feet.
Northern W.Va.: During the fourth quarter, CONSOL drilled two wells in Upshur County. In 2013, CONSOL drilled 10 wells in Northern W.Va.
CONSOL Energycurrently has one horizontal rig operating. In 2014, CONSOL plans to drill 23 wells in Barbour County with an expected average lateral length of 6,200 feet.
In the wet gas portion of the Marcellus Shale, in 2013, our joint venture partner drilled, completed, and turned in line 71, 41, and 35 wells, respectively.
In the fourth quarter 2013, our JV partner turned in line the six-well SHL 17 pad, which has reached 37 MMcfe/d during flowback.
Our JV partner is currently operating five horizontal rigs in Northern W.Va. In 2014, they expect to drill 85 wells in the wet region of the Marcellus Shale.
In 2013, as part of the
CONSOL completed 10 wells in 2013 and expects to turn in line nine wells towards the end of the first quarter of 2014.
In 2013, our joint venture partner drilled, completed, and turned in line 15, eight, and four wells, respectively. They are currently operating three horizontal rigs in eastern
Coal Division Operations
For 2013, CONSOL's Coal Division saw safety exceptions increase by 21%, from 134 to 162. In the area of environmental compliance, CONSOL's Coal Division saw violations decrease by over 41%, from 79 to 46, compared to the previous year. Also, during the same period, CONSOL had a 14% reduction in total MSHA violations with all mines and a 17% reduction in total MSHA violations for the retained coal mines.
CONSOL's Coal Division expects to complete three projects in the first quarter of 2014: the
The Enlow Fork Overland Conveyor Belt is expected to begin operations by the end of
CONSOL expects the Buchanan Mine Contrary Service Hoist project to begin operations by the end of
Earnings Release Information
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.