Eclipse Resources Drilling 1 Well in 2016, Restricting Production

Eclipse_logo_hiresEclipse Resources issued their fourth quarter 2015 operational update yesterday, along with publishing an updated investor’s PowerPoint. We have both below. Eclipse is a smaller but important Marcellus/Utica driller with its headquarters in State College, PA–although they do almost all of their drilling in Ohio’s Utica Shale. In November word leaked out that Eclipse is shopping the company (see Marcellus/Utica Driller Eclipse Resources Looking for a Buyer). There was no overt or implied reference to that in yesterday’s update. What the update did say, however, is that save a single well they plan to drill in the first quarter of this year, Eclipse is not planning to do any more drilling until the price of natgas increases. They also said that although previously drilled wells going online have the potential to boost Eclipse’s production in 2016, they plan to reign in the flow rates to keep them at 2015 levels–again, until the price of natgas goes up. Nobody is predicting an increase in natgas prices any time soon (at least not in 2016), but it appears Eclipse is buckling in for a long ride through low-price valley…

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