US-based natural gas and coal producer Consol Energy has announced plans to invest approximately $1.5bn in a bid to accelerate its natural gas production.
Consol Energy chairman and CEO Brett Harvey said that the company executed in 2013 by selling low-growth, non-core coal assets.
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"Our primary sale, which closed last month, yielded approximately $1bn in cash when taking into account after-tax proceeds and related administrative cost reductions. We will apply these funds toward our aggressive 2014 natural gas drilling program," Harvey added.
The company will invest approximately $1.1bn for gas operations, much of it in drilling and completion costs in the Marcellus and Utica shales.
Dry-side drilling will focus mainly on areas in the Marcellus shale. These areas have a better outlook from a high net revenue interest, economies of scale, or reservoir performance.
Consol plans to operate an average of four to five horizontal rigs in the Marcellus shale joint venture (JV). Consol and its partner will each drill at least a combined 162 gross wells.
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By GlobalDataThe company expects its 2014 natural gas production to be between 215 billion cubic feet equivalent (bcfe) and 223 bcfe as a result of the growth / liquids-oriented gas investment.
Image: Consol Energy plans a $1.5bn investment in natural gas production. Photo: courtesy of PRNewsFoto/CONSOL Energy Inc.
