☰ Menu
Ohio Utica Shale

PDC plans Utica shale expansion, signs midstream agreement

By Bob Downing Published: March 19, 2013

From PDC Energy:

PDC Energy Announces Increases in 2013 Capital Budget and Estimated Net Production, and Signing of Midstream Agreement in the Utica Shale


DENVER, March 18, 2013 (GLOBE NEWSWIRE) -- PDC Energy, Inc. ("PDC" or the "Company") (Nasdaq:PDCE) today announced an increase in the Company's capital budget and estimated net production for 2013. The Company also announced the signing of an agreement for the provision of midstream services in the Utica Shale.

PDC's capital budget increased from $365 million to $443 million, 85% of which is allocated to accelerate development of liquid-rich projects in the Wattenberg Field and Utica Shale. The Wattenberg Field budget increased $26 million to $280 million to accommodate the projected start-up of a third rig in May, 2013. For the year, the Company expects to drill a total of 69 horizontal wells in the liquid-rich Niobrara and Codell formations.

The Company also increased its budget for the Utica Shale from $53 million to $96 million to maintain a one-rig drilling program throughout 2013 and drill a total of 11 horizontal wells. The Utica budget includes approximately $7 million for leasehold acquisitions. The full-year drilling program was facilitated by the execution of long-term agreements with a subsidiary of MarkWest Energy Partners, LP (NYSE:MWE) ("MarkWest") to provide midstream services, including gas gathering, processing, fractionation, and marketing to support PDC's Utica operations in Guernsey County in southeast Ohio. PDC expects MarkWest to begin gathering its Guernsey County gas by the end of the second quarter of 2013 and marketing its residue gas and natural gas liquids at the tailgate of the MarkWest processing facilities.

The remaining $9 million increase is related to the Company's joint venture ("PDCM") in the Marcellus Shale to reflect the startup of its 2013 horizontal drilling program in January rather than March as originally budgeted. PDCM's capital budget is expected to be funded largely by the joint venture's cash flow and borrowings under the joint venture's revolving credit facility.

Guidance for 2013 net production, pro forma for the sale of non-core Colorado assets, has been adjusted to a range of 7.0 to 7.5 million barrels of oil equivalent (MMboe) as a result of the increase in the capital budget and the drilling of 13 additional horizontal wells. Net production volumes for 2013 are expected to be comprised of approximately 54% liquids and 46% natural gas. The benefit of additional production from the accelerated drilling program is expected to be realized beginning in the fourth quarter of 2013 and into 2014.

James Trimble, Chief Executive Officer and President, commented, "We are very excited to accelerate our liquid-rich development with the addition of a third horizontal rig in the prolific core Wattenberg Field and extending our one-rig drilling program in the Utica Shale for the full year 2013. These two plays are expected to drive the Company's organic growth for many years as we continue to increase the liquids percentage of our production and reserves and establish a more balanced portfolio of oil and natural gas."

Upcoming Investor Presentations and Analyst Day

PDC management is scheduled to present at the Howard Weil Energy Conference in New Orleans, Louisiana, on Wednesday, March 20, 2013. PDC management also plans to host an Analyst Day in New York on Thursday, April 4, 2013. Please see the Company's website at for full details and webcast information. The related slide presentations are expected to be available on the Company's website immediately prior to the events.

About PDC Energy, Inc.

PDC Energy is a domestic independent energy company engaged in the exploration, development and production of crude oil, NGLs and natural gas. Its operations are focused primarily in the liquid-rich Wattenberg Field of Colorado, including the horizontal Niobrara and Codell plays, the Utica Shale in Ohio and the Marcellus Shale in West Virginia. PDC is included in the S&P SmallCap 600 Index and the Russell 3000 Index of Companies.



See the most recent drilling report and an injection wells map From
Prev Next

Utica and Marcellus shale web sites

Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

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.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

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.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.