CNX Gas Corp.’s first horizontal well in the Marcellus Shale is producing at a rate of 6.5 MMcf/d, which sets a company record for daily output. The production rate is among the highest reported to date by any producer operating in the Appalachian Basin play.

The CNX well, located in Green County, PA, began flowing on Oct. 2 at an initial rate of 1.2 MMcf/d and 4,000 pounds/square inch (psi) of backpressure. The backpressure had gradually been reduced since then, which allowed daily production to increase to about 4 MMcf/d until last Friday, when newly installed surface equipment enabled the well to flow at the record rate. The backpressure was being held at 2,640 psi. Cumulative production from the well prior to last week was 106 MMcf.

“This was a team effort from our engineers, operators and support personnel,” said CEO Nicholas J. Deluliis. “To achieve this kind of success with our first horizontal Marcellus Shale well speaks volumes about the breadth of our horizontal drilling expertise.” CNX had drilled 160 horizontal coalbed methane (CBM) wells before drilling its first well in the Marcellus play, the CEO noted.

The Marcellus well was drilled to a vertical depth of 8,140 feet in the Huntersville Chert, penetrating 83 vertical feet of shale. The well was logged and then plugged back, and a horizontal section of 3,395 feet was cut for a total measured depth of 10,738 feet. A five-stage slickwater fracture treatment using three million pounds of proppant was used to complete the well.

CNX holds a 100% working stake in the well and also has 100% net revenue interest. The Pittsburgh-based independent is drilling its second vertical Marcellus Shale well, which would be hydraulically fractured using second and third horizontal wells.

CNX on Monday raised its 2008 production forecast for the third time this year to 75 Bcf from 74 Bcf, which puts the company on track to lift output this year by 29% from the 58.2 Bcf produced in 2007.

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