Atlas Energy, Inc. has identified over 3,150 horizontal Marcellus Shale drilling locations on its acreage and estimates that the incremental net recoverable reserves from these are 13 trillion cubic feet equivalents (Tcfe).
Atlas' reserve report has so far identified 73 Marcellus horizontal locations as proved undeveloped.
Atlas has prioritised developing its Marcellus Shale acreage in southwestern Pennsylvania and announced that its year end 2009 proved reserves totaled 1.02 Tcfe, driven by 34 percent growth in Appalachia reserves.
Approximately 52 percent of the Company's proved reserves were proved developed and approximately 99 percent were natural gas, according to Oil Voice.
"Reserves reflect the success of Marcellus Shale"
Throughout 2009 Atlas replaced over 850 percent of its production through the drill bit, and incurred total capital costs of approximately $109 million drilling and completing wells last year. This was comprised of its own investments in drilling partnerships it sponsored as well as the cost of wells drilled directly for its own account.
The Company's reserves-to-production ratio is 27.7 years; indicating the long-lived nature of the Company's reserves.
Speaking of the company's progress, Atlas chairman and CEO Edward E.Cohen said: "Our year end proved reserves reflect the success of our Marcellus Shale development-albeit limited by having funded almost all of our Marcellus Shale drilling in 2009 through our drilling partnerships, which served to limit our capital investment, but also limited the growth of our reserves.
"Now in 2010, having improved our cash flow through our transformation from a master limited partnership making large distributions into an operating entity reinvesting our cash flow in operations, we intend to grow our reserves and cash flow at an increased rate by drilling most horizontal Marcellus Shale wells for our own account."
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