CNX Gas Corp. plans to use the bulk of its 2008 capital budget to target natural gas deposits in the Marcellus, Huron, Chattanooga and New Albany shales, as well as the Trenton Black River this year. In the Marcellus Shale, CNX has a leasehold that includes about 161,000 acres. In Kentucky and Virginia’s Huron Shale CNX holds another 193,000 acre-leasehold. Tennessee’s Chattanooga Shale holdings number about 132,000 acres, and in the New Albany Shale play, which extends into Kentucky, Indiana and Illinois, CNX has about 300,000 acres. The Pittsburgh-based company said that overall, exploration spending will jump 35% to $470 million from $348.6 million in 2007. Of the total, $377 million directed toward drilling, midstream and land operations in the company’s Virginia and Pennsylvania coalbed methane (CBM) development projects. Besides its gas shale plays, CNX also will be developing its holdings in the Trenton Black River, which is “thought to underlie nearly all of the Appalachian shales,” the company said. In that leasehold, “CNX Gas believes it has 486,000 acres with Trenton Black River potential.”
Budget
Articles from Budget
Alberta’s Gas Revenue Leads to Record Government Budget Surplus
Natural gas propelled Alberta, Canada’s chief gas producing province, to a record government budget surplus of C$8.7 billion (US$7.8 billion) in the 2005-06 fiscal year that ended March 31.
Industrial Gas Group Seeks Boost in Forest Service’s Permitting Budget
Industrial natural gas consumers have called on a House appropriations subcommittee to increase the U.S. Forest Service’s budget for permit processing by $18 million in fiscal 2007 to spur oil and gas activity in the Rocky Mountain West region.
NGI The Weekly Gas Market Report
XTO to Spend $1.7B, Grow Production 10-12%
XTO Energy Inc. said it plans to grow production by 10 to 12% over 2005 levels with a 2006 exploration and development budget of $1.7 billion, plus $100 million for pipeline, compression and processing facilities.
Hess Exploratory Program to Focus on Deepwater Gulf
Amerada Hess Corp. has set aside $4 billion for its capital budget this year, with about $766 million earmarked for overseas opportunities. The New York-based producer plans to spend $570 million for exploration and exploitation, with more than half of the exploratory program focused on the deepwater Gulf of Mexico.
Industry Briefs
California-based Berry Petroleum Co. raised its 2006 capital expenditure budget 15% to $160 million, with about 60% of the total going to exploration and production in the Rocky Mountains and Midcontinent assets. The other 40%, or $62 million, will be used to develop Berry’s California assets. Berry is targeting production growth of 9% to average about 25,000 boe/d before acquisitions. Production in 2006 is expected to be about 70% heavy oil, 15% light oil and 15% natural gas.
Chevron Boosts Capital Budget 35% in ’06 to $14.9B
Chevron Corp. on Thursday boosted its 2006 capital and exploratory budget by 35%, to $14.9 billion, earmarking $3.3 billion for projects in the U.S. upstream, including the deepwater Gulf of Mexico, liquefied natural gas (LNG) and gas-to-liquids (GTL) facilities. Chevron also will repurchase another $5 billion in shares over the next three years; it has repurchased $5 billion in shares since April 2004.
NGI The Weekly Gas Market Report
Opening Eastern Gulf in Bush Administration’s Hands; Congress Shies Away from OCS
While proponents of expanded offshore drilling were disappointed that the Senate Energy and Natural Resources Committee did not take up the issue in its budget reconciliation package last Wednesday, Chairman Pete Domenici (R-NM) said he would continue to press President Bush to exercise his power to open up a portion of the gas-rich eastern Gulf of Mexico to production activity.
Opening Up OCS in Bush Administration’s Hands; Congress Shies Away from Issue
While expanded drilling in federal waters will not be addressed in the Senate Energy and Natural Resources Committee’s budget reconciliation package Wednesday, Chairman Pete Domenici (R-NM) said he will press the Bush administration to use his own powers to open up a portion of the eastern Gulf of Mexico to production activity.
APGA Calls for Congress to Tackle Coastal Drilling in Budget Reconciliation
The American Public Gas Association (APGA) on Wednesday called on Congress to include language in budget reconciliation legislation that would allow coastal states to open up their currently closed shores to oil and natural gas production.
