Penn Virginia Disappointed with Output from First Three Marcellus Shale Wells Drilled in PA

The CEO of drilling company Penn Virginia has expressed disappointment with the output of the first three Marcellus Shale wells they have drilled in Pennsylvania. From a press release issued Tuesday:

Penn Virginia Corporation today provided an update of its activity in the Marcellus Shale.

Peak 24-hour production rates from our first three Marcellus horizontal wells, the Risser #A-1H, Risser #A-2H and Dunn #A-1H, were approximately 3.1, 2.8 and 4.0 million cubic feet (MMcf) per day, with an average rate over a 72-hour test period of 2.1, 1.7 and 2.7 MMcf per day, respectively. These three test wells are located in the central portion of our approximately 35,000 net acre position in Potter and Tioga Counties, Pennsylvania. Pipeline construction is in progress with sales expected to begin by early August. One additional well in the western portion of our acreage is currently waiting on completion. During the second half of 2011, we plan to test, initially with vertical wells, the eastern portion of our acreage, comprised of approximately 20,000 net acres.

H. Baird Whitehead, President and Chief Executive Officer, stated, “The Marcellus Shale test wells had initial production rates which fell short of our expectations. We will monitor longer term production once these wells are turned into the pipeline and determine if the reserves can support a development program in this immediate area. As important, we will begin testing our eastern acreage position during the second half of the year.”*

*Business Wire/Penn Virginia Press Release (Jun 28, 2011) – Penn Virginia Corporation Provides Marcellus Shale Update