National Fuel Gas Backs FY14,'15 Operational & Capital Expenditure Views

(RTTNews) - National Fuel Gas Co.'s (NFG) exploration and production subsidiary, Seneca Resources Corp., issued an operational update and reported initial results from its first Geneseo Shale well located in Lycoming County, Pa. Also, the firm confirmed its capital expenditure and production guidance ranges for fiscal 2014 and 2015.

Seneca's first Geneseo Shale well drilled in Lycoming County, Pa., achieved a peak 24-hour production rate of 14.1 million cubic feet or "MMcf" per day and averaged 8.6 MMcf per day during its first 30 days. The well was drilled to a lateral length of 4,920 feet and completed with 33 stages. The initial estimated ultimate recovery for this well is 7.0 billion cubic feet or "Bcf".

With respect to production guidance, the firm is confirming its production forecast range for the entire 2014 and 2015 fiscal years of 145 to 165 billion cubic feet equivalent or "Bcfe" and 180 to 220 Bcfe, respectively. At the midpoint of these forecasted ranges, production growth for each of fiscal 2014 and 2015 is projected to be 28% and 29%, respectively.

Looking ahead, National Fuel Gas is backing its consolidated capital expenditure forecast range for the entire 2014 and 2015 fiscal years of $855 to $1,035 million and $1,065 to $1,275 million, respectively. These targets assume a consistent operation of three horizontal drilling rigs in Seneca's East unit.