CANONSBURG, Pa., June 2, 2014 /PRNewswire/ -- Rice Energy Inc.
(NYSE: RICE) today reported that it has successfully tested the
company's first Utica Shale well in central Belmont County, Ohio. In addition, Rice has
strategically added to its firm transportation portfolio, providing
increased market access for its growing production profile.
Finally, Rice's borrowing base under its revolving credit facility
was increased to $385.0 million.
Bigfoot 9H Production Test
We are pleased to announce the production test results of our
first operated Utica Shale well, the Bigfoot 9H. After five
days of flowback, the Bigfoot 9H stabilized at a rate of 41.69
MMcf/d of gas on a 33/64" choke with flowing casing pressures of
5850 psi. Based upon a gas composition
analysis, the heat content is 1086 Btu and therefore
will not require processing. We own an approximate 93%
working interest in the well, which has an effective lateral length
of 6,957 feet and was completed with a
40-stage frac. We anticipate first production
by early July and will produce the well into sales through our
restricted choke program.
Toby Rice, Chief Operating
Officer, commented, "This Bigfoot test is a significant step
towards validating the production potential of the Utica Shale in
central Belmont County, where we
control more than 46,000 net acres. We are especially
pleased to deliver these strong results to the landowners of
Belmont County, who have believed
in us from the beginning. Our 2014 Ohio program is off to a
great start, and we look forward to continuing our methodical
development of this world-class asset."
Firm Transportation on Rockies Express
Pipeline
To further ensure the deliverability of our Utica Shale
production, we have entered into a precedent agreement for 175,000
MMBtu/d firm transportation on the Rockies Express Pipeline
beginning in June 2015 for a term of
20 years. The Rockies Express Pipeline will provide us with greater
access to Gulf Coast and Midwest markets. With this capacity, our
firm transportation and firm sales portfolio will cover
approximately 818,000 MMBtu/d in 2015 and 921,000 MMBtu/d in
2016. We expect to enter into a firm transportation services
agreement and satisfy other customary conditions precedent to our
receiving the referenced capacity in the near term.
Redetermined Borrowing Base
In connection with our third amended and restated credit
agreement effective April 2014, our
borrowing base was subsequently redetermined and increased to
$385.0 million. This increase
provides us with greater financial flexibility to develop our
prolific Appalachian assets.
Participation in Upcoming Conferences
We plan to participate in the following energy conferences and
investor events:
June 2-3: RBC's 2014 Global Energy
and Power Conference - New York,
NY
June 4: DUG East – Pittsburgh, PA
June 16-17: Sterne Agee Executive
Summit – Boston, MA
The presentations will be made available on our website at
www.riceenergy.com.
About Rice Energy
Rice Energy Inc. is an independent natural gas and oil company
engaged in the acquisition, exploration and development of natural
gas and oil properties in the Appalachian Basin. For more
information, please visit our website at www.riceenergy.com.
Forward Looking Statements
This release includes "forward-looking statements" within the
meaning of Section 27A of the Securities Act of 1933, as amended
(the "Securities Act"), and Section 21E of the Securities Exchange
Act of 1934, as amended (the "Exchange Act"). Such forward-looking
statements are subject to a number of risks and uncertainties, many
of which are beyond our control. All statements, other than
historical facts included in this release, that address activities,
events or developments that we expect or anticipate will or may
occur in the future, including such things as our future capital
expenditures (including the amount and nature thereof), business
strategy and measures to implement strategy, competitive strengths,
goals, expansion and growth of our business and operations, plans,
market conditions, references to future success, references to
intentions as to future matters and other such matters are
forward-looking statements. All forward-looking statements speak
only as of the date of this release. Although we believe that the
plans, intentions and expectations reflected in or suggested by the
forward-looking statements are reasonable, there is no assurance
that these plans, intentions or expectations will be achieved.
Therefore, actual outcomes and results could materially differ from
what is expressed, implied or forecast in such statements.
We caution you that these forward-looking statements are subject
to risks and uncertainties, most of which are difficult to predict
and many of which are beyond our control, incident to the
exploration for and development, production, gathering and sale of
natural gas and oil. These risks include, but are not limited to:
commodity price volatility; inflation; lack of availability of
drilling and production equipment and services; environmental
risks; drilling and other operating risks; regulatory changes; the
uncertainty inherent in estimating natural gas reserves and in
projecting future rates of production, cash flow and access to
capital; and the timing of development expenditures. Information
concerning these and other factors can be found in our filings with
the Securities and Exchange Commission, including our Forms 10-K,
10-Q and 8-K. Consequently, all of the forward-looking statements
made in this news release are qualified by these cautionary
statements and there can be no assurances that the actual results
or developments anticipated by us will be realized, or even if
realized, that they will have the expected consequences to or
effects on us, our business or operations. We have no intention,
and disclaim any obligation, to update or revise any
forward-looking statements, whether as a result of new information,
future results or otherwise.
Initial production rates are subject to decline over time and
should not be regarded as reflective of sustained production
levels. In particular, production from horizontal drilling in shale
oil and natural gas resource plays and tight natural gas plays that
are stimulated with extensive pressure fracturing are typically
characterized by significant early declines in production
rates.
Certain of our wells are named after superheroes and monster
trucks, some of which may be trademarked.
Despite their size and strength, our wells are in no manner
affiliated with such superheroes or monster trucks.
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SOURCE Rice Energy Inc.