Monday, February 20, 2012

Susquehanna County, PA - Marcellus Shale

By Tim -

Talisman Energy (TLM) recently reported an operational update on the Marcellus Shale in Susquehanna County, PA. Talisman Energy (TLM) plans to spend $250 million on building out infrastructure as they move east towards Susquehanna County. However, due to low natural gas prices in the U.S, Talisman will reducing their drilling activity.

In the Marcellus, we'll reduce activity substantially in the light of current gas prices. We exited the year with 11 rigs, but will plan to reduce to an average of 7 rigs for this year and are actively considering reducing further to 5 rigs in the play. Even with 5 rigs operating, we expect to be able to hold production around 500 million cubic feet a day. Capital will be between $600 million and $800 million in total, with up to $250 million spent on building out infrastructure as we move east towards Susquehanna County.We produced over 400 million cubic feet a day in the Marcellus last year and about 485 million cubic feet a day in the fourth quarter and secured some of the highest margins in that region