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Eclipse Boosts Appalachian Production 374%

Appalachian pure-play Eclipse Resources Corp. said it produced 198.6 MMcfe/d in the second quarter, a 374% increase from the year-ago period, and it is increasing its full-year guidance by 10 MMcfe/d.

Eclipse went public in June 2014, and its production has steadily increased since then (see Shale DailyJune 23, 2014). It is expected to report full financial results next week but said its second quarter production was 10% higher than quarterly guidance. Volumes were weighted 57% to natural gas, 23% to natural gas liquids and 20% to oil.

The company turned six wells to sales during the quarter, including its three-well Sawyers pad in Monroe County, OH, which was the first 715-foot downspacing test in the dry gas window. The company's wells have been spaced at 1,000 feet there (see Shale Daily, June 3).

Production was up 24% sequentially (see Shale DailyApril 14). Management said it would increase full-year guidance  to 190-200 MMcfe/d from 180-190 MMcfe/d. It expects to produce 205-215 MMcfe/d in the third quarter.

The company, which cut this year's budget by 57% from 2014 levels, said it would continue running one rig in the Utica, where it plans to drill 10 wells and complete another nine in the second half of the year. It plans to turn seven wells to sales during that time.

After hedges, the realized natural gas price was $3.05/Mcf, a 31-cent premium to the average New York Mercantile Exchange price during the quarter.

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