National Fuel Provides Update on the Status of Drilling Operations on New Pennsylvania State Leases
April 13 2009 - 4:15PM
Business Wire
Seneca Resources (�Seneca�), a wholly owned subsidiary of
National Fuel Gas Company (NYSE: NFG) (�National Fuel� or the
�Company�), today announced that it has completed drilling and
coring a vertical Marcellus Shale well on Pennsylvania�s Department
of Conservation and Natural Resources (�DCNR�) Tract 595 in Tioga
County, Pennsylvania. Seneca acquired tract 595 at the DCNR lease
sale in September 2008. At that same sale, Seneca also acquired
Tract 100 in Lycoming County, where drilling is expected to
commence this week.
Matthew D. Cabell, President of Seneca Resources, stated,
�Preliminary results from our first three Seneca-operated vertical
wells are positive and we are excited about the Marcellus Shale
potential on the tracts acquired through the DCNR lease sale. These
wells are part of a 10-well vertical Marcellus Shale drilling
program operated by Seneca that will provide the data needed to
evaluate our acreage across seven counties and help us to plan our
horizontal development drilling which is to begin this summer.
Seneca anticipates drilling more than 100 horizontal wells on tract
595 and tract 100 over the next several years.�
Two other tracts from the September 2008 lease sale, totaling
8,408 acres, for which Seneca was high bidder, will not be acquired
due to unanticipated gas pipeline routing issues. Pipeline routes
acceptable to the state were more than twice the length of what was
anticipated at the time of bidding.
Seneca Resources, the exploration and production segment of
National Fuel Gas Company explores for, develops and purchases
natural gas and oil reserves in California, the Appalachian region
and in the Gulf Coast region of Texas and Louisiana. Currently,
Seneca�s efforts are focused on evaluating, exploring and
developing reserves in the Appalachian basin, economically
producing reserves in California and exploiting opportunities in
the shallow waters of the Gulf of Mexico. Additional information
about Seneca Resources and National Fuel Gas Company is available
at www.nationalfuelgas.com or through the Company�s investor
information service at 1-800-334-2188.
Certain statements contained herein, including those regarding
estimated future earnings, and 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: financial and economic conditions, including the
availability of credit, and their effect on the Company�s ability
to obtain financing on acceptable terms for working capital,
capital expenditures and other investments; occurrences affecting
the Company�s ability to obtain financing under credit lines or
other credit facilities or through the issuance of commercial
paper, other short-term notes or debt or equity securities,
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 terrorist activities, acts of war, major
accidents, fires, hurricanes, other severe weather, pest
infestation or other natural disasters; changes in actuarial
assumptions, the interest rate environment and the return on
plan/trust assets related to the Company�s pension and other
post-retirement benefits, which can affect future funding
obligations and costs and plan liabilities; changes in demographic
patterns and weather conditions; changes in the availability and/or
price of natural gas or oil and the effect of such changes on the
accounting treatment of derivative financial instruments or the
valuation of the Company�s natural gas and oil reserves;
impairments under the SEC�s full cost ceiling test for natural gas
and oil reserves; uncertainty of oil and gas reserve estimates;
ability to successfully identify, drill for and produce
economically viable natural gas and oil reserves, including
shortages, delays or unavailability of equipment and services
required in drilling operations; significant differences between
the Company�s expected and actual production levels for natural gas
or oil; significant changes in competitive factors affecting the
Company; changes in laws and regulations to which the Company is
subject, including tax, environmental, safety and employment laws
and regulations; governmental/regulatory actions, initiatives and
proceedings, including those involving acquisitions, financings,
affiliate relationships, industry structure, franchise renewal, and
environmental/safety requirements; unanticipated impacts of
restructuring initiatives in the natural gas and electric
industries; significant differences between the Company�s expected
and actual capital expenditures and operating expenses and
unanticipated project delays or changes in project costs or plans;
the nature and projected profitability of pending and potential
projects and other investments, and the ability to obtain necessary
governmental approvals and permits; significant changes in tax
rates or policies (including cap-and-trade regimes) or in rates of
inflation or interest; significant changes in the Company�s
relationship with its employees or contractors and the potential
adverse effects if labor disputes, grievances or shortages were to
occur; changes in accounting principles or the application of such
principles to the Company; the cost and effects of legal and
administrative claims against the Company or activist shareholder
campaigns to effect changes at the Company; increasing health care
costs and the resulting effect on health insurance premiums and on
the obligation to provide other post-retirement benefits; or
increasing costs of insurance, changes in coverage and the ability
to obtain insurance.
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