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Across all of the gas plays, the $755 million includes $519 of drilling capital, $124 million of gathering and compression capital, $30 million for production equipment, $26 million for water, and $23 million for land.
As a result, the total drilling in the liquids-rich/oil window is expected to be the 39 (gross) wells in the Marcellus Shale, and 22 (gross) wells in the Utica Shale, for a total of 61 (gross) wells out of the 144 (gross) wells, or 42%, expected to be drilled in the two plays.
Within the coal category, CONSOL anticipates investing $310 million for maintenance-of-production projects. Another $205 million has been allocated to projects such as the BMX Mine which will result in increased production. This project is on track to add 5 million tons a year of high-quality Pittsburgh seam coal, which will be sold in either the high-vol or thermal markets. A further $155 million will go towards efficiency improvements such as the overland belt at Enlow Fork Mine, while health and safety items will require $50 million.
PITTSBURGH, Jan. 10, 2012 /PRNewswire via COMTEX/ –
CONSOL Energy Inc.’s
Board of Directors has approved a 2012 Capital Budget of $1.7 billion, an increase from $1.4 billion invested in 2011. The budget includes $720 million for coal, $755 million for gas, $135 million for water, and $110 million for other.
Within the gas category, CONSOL plans to spend $575 million on developing its extensive Marcellus Shale assets. Included in this is drilling capital of $395 million. The budget anticipates that the CONSOL/Noble Energy joint venture will drill 122 (gross) horizontal Marcellus Shale wells, including 39 (gross) wells in the liquids-rich area of the play. CONSOL expects to invest $90 million in related gathering and compression.