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| Atlas Energy Resources Announces Initial Rate of Production of 5 Million Cubic Feet Per Day from a Vertical Marcellus Well; Has Performed over 100 Vertical Marcellus Completions |
| PITTSBURGH, Dec 19, 2008 (BUSINESS WIRE) -- Atlas Energy Resources, LLC (NYSE:ATN) ("Atlas" or "the Company") announces
today that it has completed a vertical well in the Marcellus Shale that
produced a record 5 million cubic feet of natural gas into a pipeline
over a 24-hour period and, after 25 days of production, has produced
approximately 81 million cubic feet. Atlas completed this well using a
two-stage frac design that it pioneered earlier this year, which was
drilled on the Company's own account. The Company has now successfully
completed seven two-stage vertical fracs in the Marcellus Shale and has
averaged initial rates of production for 24 hours of 2.5 million cubic
feet per day. The Company intends to complete all future vertical
Marcellus wells with similar multi-stage fracs. Atlas has performed over
100 vertical Marcellus completions.
"These results reflect not only the effectiveness of our completion designs, but also the quality of our acreage," stated Richard D. Weber, President and Chief Operating Officer. "The potential of horizontal wells having frac designs with up to eight stages is very exciting given the exceptional results from our two stage verticals." Atlas is also currently operating an extensive horizontal Marcellus program and expects to complete 12 wells by early in the second quarter of 2009. Ten of these wells will be drilled in a 50/50 joint venture with an industry partner in Washington County, Pennsylvania. The remaining two wells will be drilled in eastern Greene and western Fayette counties of Pennsylvania in an industry consortium where Atlas will have a 25% working interest. In each case, Atlas will be the operator. The Company is currently running two horizontal rigs. The first two wells have been drilled and cased to 2,400 feet and 3,800 feet, respectively, and will be completed and turned into line in January. In addition, Atlas continues to hedge the price it receives for its natural gas production, with hedges in place through 2013 at prices ranging from approximately $8.00 to $9.00 per mcf. The Company's hedge positions for 2009 and 2010 account for approximately 79% and 63%, respectively, of its recently disclosed production volume for the third quarter of 2008. Atlas Energy Resources, LLC develops and produces domestic natural gas and to a lesser extent, oil. Atlas Energy is one of the largest independent energy producers in the Eastern United States. Atlas Energy sponsors and manages tax-advantaged investment partnerships, in which it co-invests, to finance the development of its acreage. For more information, visit Atlas Energy's website at www.atlasenergyresources.com or contact Investor Relations at bbegley@atlasamerica.com. Certain matters discussed within this press release are forward-looking statements. Although Atlas Energy Resources, LLC believes the expectations reflected in such forward-looking statements are based on reasonable assumptions, it can give no assurance that its expectations will be attained. Factors that could cause actual results to differ materially from expectations include financial performance, regulatory changes, changes in local or national economic conditions and other risks detailed from time to time in Atlas Energy's reports filed with the SEC, including quarterly reports on Form 10-Q, reports on Form 8-K and annual reports on Form 10-K. SOURCE: Atlas Energy Resources, LLC
Atlas Energy Resources, LLC |
| "Safe Harbor" Statement under the Private Securities Litigation Reform Act of 1995: Statements in this press release regarding Atlas Energy Resources's business which are not historical facts are "forward-looking statements" that involve risks and uncertainties. For a discussion of such risks and uncertainties, which could cause actual results to differ from those contained in the forward-looking statements, see "Risk Factors" in the Company's Annual Report or Form 10-K for the most recently ended fiscal year. |