Sep. 22, 2009 (Business Wire) -- Seneca Resources Corporation (“Seneca”), a wholly owned subsidiary of National Fuel Gas Company (NYSE: NFG) (“National Fuel” or the “Company”), today announced that its first Seneca-operated Marcellus Shale horizontal well tested at an average rate of 5.8 million cubic feet per day (“Mmcfd”) over six days. The well is located in Tioga County, Pennsylvania.
Matthew D. Cabell, President of Seneca, stated, “This test exceeded our expectations, with the well flowing at a high rate with almost no decline. It is a very encouraging result for our first Seneca-operated horizontal well.” Seneca is currently drilling its third horizontal well and plans to drill an additional 15 to 20 horizontal Marcellus wells in fiscal 2010. Seneca also participated in 12 horizontal Marcellus Shale wells drilled by its joint-venture partner, EOG Resources (“EOG”), in fiscal 2009 and will participate in approximately 20 EOG-operated wells to be drilled in fiscal 2010.
David F. Smith, President and Chief Executive Officer, added, “With this well test and our continued progress in the EOG joint-venture, I am confident that we will meet or exceed our expectations of 20 to 30 Mmcfd of production in the Marcellus shale play by the end of our 2010 fiscal year. We have a great acreage position and a talented team that is proving we can execute the program for rapid growth in this region.”
Seneca, 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 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 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.
