Independent producer CNX Resources said Thursday its total proved reserves reached 7.9 trillion cubic feet-equivalent (Tcfe) as of Dec. 31, 2018, up 4% from 2017’s total.
The increase came despite selling roughly 825 billion cubic feet-equivalent (Bcfe) in proved reserves last year via divestiture of CNX’s shallow oil and gas and Ohio Utica joint venture assets.
Pro forma for asset divestitures in 2018, reserves grew 15% compared to the previous year, Kallanish Energy reports.
During 2018, Pittsburgh-based CNX added 960 Bcfe of proved reserves through extensions and discoveries, which resulted in the company replacing 189% of its 2018 net production of 507 Bcfe.
In 2018, drilling and completion costs incurred directly attributable to extensions and discoveries were $490 million. When divided by the extensions and discoveries of 960 Bcfe, this yields a drill bit finding and development cost of $0.51 per thousand cubic feet-equivalent (Mcfe).
Future development costs for proved undeveloped reserves (PUDs) are estimated at roughly $1.43 billion, or $0.42/Mcfe.
Proved developed reserves of 4.49 Tcfe in 2018, comprised 57% of total proved reserves, compared to 58% in 2017. PUDs were 3.39 Tcfe at Dec. 31, 2018, or 43% of total proved reserves, compared to 42% at year-end 2017.
During 2018 in the Marcellus Shale, CNX turned-in-line (Til) 46 gross wells with an average completed lateral length of roughly 8,300 feet and expected ultimate recoveries (EURs) ranging between 1.7 and 3.5 Bcfe per 1,000 feet of completed lateral.
As of Dec. 31, the company’s Marcellus Shale proved reserves were 5.60 Tcfe, which included 3.03 Tcfe of proved developed reserves.
Last year in the Utica Shale, CNX Til 17 gross wells with an average completed lateral length of roughly 8,200 feet and EURs averaging over 2.5 Bcfe/1,000 feet of completed lateral.
In 2018, CNX booked 1.07 Tcfe of Utica Shale proved reserves after accounting for the reduction of 342 Bcfe due to the sale of Ohio Utica joint venture reserves-in-place.
The company was able to increase total reserves year-over-year despite the asset divestiture due to continued drilling success in the deep dry Utica Shale in Pennsylvania.
This post appeared first on Kallanish Energy News.
