From the AP:
Seneca Resources Corp., a subsidiary of National Fuel Gas Co., announced results of two new Marcellus Shale wells on Wednesday and its plans to explore joint-venture opportunities in the Marcellus Shale.
The company said it tested a well in Lycoming County, Pa., at a rate of 15.8 million cubic feet per day. In Clearfield County, Pa., a well operated by its joint-venture partner, EOG Resources Inc., flowed at a 24-hour rate of 8.9 million cubic feet per day.
The full story can be found here: NFG Marcellus Article
So, why do I post this you ask. Nope, its not to recommend NFG, but rather to bring more attention to the shale gas finds (Marcellus and Haynesville). The wells hitting in the shale areas have tremendous flow rates and pressure. While the decline curve for shale can be up to 80% in the first year, the amount of gas coming out of the ground is significant. Supply is abundant, demand has not grown anywhere near as fast which should serve to keep nat gas prices low for the foreseeable future.
No positions in NFG or EOG (although EOG is worth a look as they have decent exposure to both shale plays).
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