CNX Resources said Monday today total proved reserves at Dec. 31, 2019, rose 7% from a year earlier, to 8.48 trillion cubic feet-equivalent (Tcfe), Kallanish Energy reports.
The Pittsburgh-based independent producer organically added 1.65 Tcfe of proved reserves through extensions and discoveries, which resulted in the company replacing over 300% of its 2019 net production of 539 billion cubic feet-equivalent (Bcfe). All the additions were a result of CNX’s continued development within the Marcellus and Utica Shale plays.
At the end of December, CNX has total proved, probable, and possible reserves (3P reserves) of 10.3 Tcfe, comprised of reserves expected to be developed in the company’s five-year plan. There are an additional 113 Tcfe of recoverable resources in the other resource potential the company expects to develop beyond the five-year plan.
In 2019, drilling and completion costs incurred directly attributable to extensions and discoveries totaled $630 million. When divided by the extensions and discoveries of 1.65 Tcfe, the drillbit F&D cost was $0.38 per thousand cubic feet-equivalent (Mcfe).
Future development costs for proved undeveloped reserves (PUDs) are estimated at roughly $942 million, or $0.26/Mcfe.
Last year, total net revisions were -564 Bcfe. The revisions included 709 Bcfe positive revisions due to improved well performance in both proved developed and proved undeveloped reserves, offset by 97 Bcfe negative pricing and other revisions primarily from decreasing natural gas prices compared to year-end 2018, 304 Bcfe of reductions due to the reclassification of PUD’s through compliance with Securities and Exchange Commission rules, and 872 Bcfe negative revisions due to plans changes from CNX’s portfolio optimization.
Proved developed and undeveloped reserves were 4.84 Tcfe (57%) and 3.59 Tcfe (43%), respectively, for 2019. PUDs at year-end 2019 represent 67% of the total wells the company expects to drill over the next five years.
During 2019, in the Marcellus Shale, CNX turned-in-line (TIL) 41 gross wells with an average completed lateral length of approximately 9,400 feet and expected ultimate recoveries (EURs) averaging 2.6 Bcfe per thousand feet of completed lateral.