National Fuel Announces Significant Marcellus Shale Well Results

January 22, 2013 07:00 AM Eastern Time

WILLIAMSVILLE, N.Y.–(BUSINESS WIRE)–Seneca Resources Corporation (“Seneca”), the wholly owned exploration and production subsidiary of National Fuel Gas Company (NYSE: NFG)  (“National Fuel” or the “Company”), has announced initial results from six recently completed Marcellus Shale wells within its DCNR 100 tract in Lycoming County, Pa.

Seneca has completed six new Marcellus Shale wells on a pad located within its DCNR 100 tract in Lycoming County, Pa. These six wells had  24-hour peak production rates averaging 17.8 million cubic feet (“MMcf”)        of natural gas per day, five of which represent the highest peak production rates of any wells operated by Seneca in the Marcellus.      Treatable lateral lengths on these wells ranged between 4,292 and 5,101 feet and they were completed with 14 to 18 frac stages per well. All six wells are expected to be flowing into National Fuel Gas Midstream Corporation’s Trout Run Gathering System by the end of January.

David F. Smith, Chairman and Chief Executive Officer of National Fuel,  stated, “The success we are achieving in Lycoming County validates the prolific nature of the Marcellus in this area. With three wells reaching       peak production rates above 20 MMcf of natural gas per day, and all six reaching a combined 24-hour peak production rate of 107 MMcf of natural gas per day, these wells represent some of the most productive wells ever drilled in the Marcellus by any operator. With two drilling rigs running in Lycoming County, and without the production infrastructure constraints facing many other operators in the Marcellus, we anticipate this acreage will be a key driver of Seneca’s production growth over the next two to three years.”

Well Name Treatable Lateral Length Number of Stages 24-Hour Peak Production
          DCNR 100 3H           5,101’ 18           21.4 MMcf
          DCNR 100 6H           4,807’ 17           20.9 MMcf
DCNR 100 7H           4,840’ 17           18.8 MMcf
          DCNR 100 8H           5,054’ 18           20.2 MMcf
          DCNR 100 9H           4,292’ 14           8.0 MMcf
          DCNR 100 66H           4,845’ 17           17.7MMcf

Including these six wells, Seneca expects to have a total of 15 wells       producing into the Trout Run Gathering System by the end of January.       Additionally, 16 more wells on the DCNR 100 tract will be completed this       fiscal year, with approximately 25 more scheduled for completion in       Fiscal 2014. The Company plans to provide further details on its       Appalachian operations during its scheduled earnings teleconference on       February 8, 2013.

National Fuel is an integrated energy company with $5.9 billion in  assets comprised of the following four operating segments: Exploration and Production, Pipeline and Storage, Utility, and Energy Marketing.       Additional information about National Fuel is available at www.nationalfuelgas.com  or through its investor information service at 1-800-334-2188.

Certain statements contained herein, including statements identified by the use of the words “anticipates,” “estimates,” “expects,” “forecasts,”  “intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,”  “may” and similar expressions, and statements which are other than       statements of historical facts, 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:       factors affecting the Company’s ability to successfully identify, drill       for and produce economically viable natural gas and oil reserves,   including among others geology, lease availability, title disputes,  weather conditions, shortages, delays or unavailability of equipment and       services required in drilling operations, insufficient gathering,   processing and transportation capacity, the need to obtain governmental approvals and permits, and compliance with environmental laws and       regulations; changes in laws, regulations or judicial interpretations to  which the Company is subject, including those involving taxes, safety,  climate change, other environmental matters, real property, and  exploration and production activities such as hydraulic fracturing;  changes in the price of natural gas or oil; impairments under the SEC’s  full cost ceiling test for natural gas and oil reserves; uncertainty of  oil and gas reserve estimates; significant differences between the  Company’s projected and actual production levels for natural gas or oil;   governmental/regulatory actions, initiatives and proceedings; delays or  changes in costs or plans with respect to Company projects or related       projects of other companies, including difficulties or delays in obtaining necessary governmental approvals, permits or orders or in  obtaining the cooperation of interconnecting facility operators;       financial and economic conditions, including the availability of credit,  and occurrences affecting the Company’s ability to obtain financing on acceptable terms for working capital, capital expenditures and other       investments, 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 performance of the Company’s key suppliers counterparties; or economic disruptions or       uninsured losses resulting from major accidents, fires, severe weather,  natural disasters, terrorist activities, acts of war or cyber attacks.   The Company disclaims any obligation to update any forward-looking  statements to reflect events or circumstances after the date thereof.

Contacts

National Fuel Gas Company Analyst: Timothy J.  Silverstein  716-857-6987

Media: Karen L. Merkel  716-857-7654

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About cberl

Chris Berl is President and CEO of Restroom Direct and Managing Director of Bavada.com. Both companies specialize in the sales of commercial restroom accessories and hand dryers. Chris is also a Director at Hoyt Royalty which is a family run enterprise managing mineral rights in the Marcellus Shale region of Pennsylvania.