|Plans 50 Horizontal Wells in the Next 18 Months
PITTSBURGH–(BUSINESS WIRE)–June 20, 2008–Atlas Energy Resources, LLC (NYSE:ATN) (“Atlas Energy” or “the Company”) announces today that it has drilled or participated in four successful horizontal wells in the Chattanooga Shale of Eastern Tennessee. Initial results indicate that horizontal Chattanooga Shale wells, with a 3,000 foot lateral, can be drilled and completed for approximately $1.1 million, and are capable of stabilized production into a pipeline of between 300 and 500 Mcfe per day.
Over the last 18 months, Atlas Energy has accumulated 105,000 net acres located in Eastern Tennessee. The Company believes that its acreage contains up to 500 potential horizontal drilling locations in the Chattanooga Shale. Furthermore, most of this acreage is prospective from conventional reservoirs, such as the Monteagle (Big Lime), the Fort Payne Limestone, the Stones River and the Knox Group, for which the Company believes it has up to 750 locations.
Atlas Energy entered Tennessee approximately four years ago through a farm out with Knox Energy, LLC, which has since expired. Today, Atlas Energy operates over 375 vertical wells producing from conventional zones, as well as the Chattanooga Shale, and is the largest producer of oil and gas in the state. The Company has plans to drill and complete approximately 150 conventional wells by March 31, 2009 and plans a two rig horizontal shale program capable of drilling four wells per month.
The Devonian Chattanooga Shale is an organic, hydrocarbon rich shale found throughout Eastern Tennessee. This productive horizon is located beneath the Mississippian Fort Payne Limestone at a depth of between 3,000 and 4,000 feet. The shale thickness ranges from 80 to over 200 feet and is thought to be the source rock for the hydro-carbons produced from many of the conventional reservoirs in Tennessee. The Chattanooga Shale is the stratigraphic equivalent of the Lower Huron found in Eastern Kentucky and West Virginia.
Natural gas produced in Tennessee is generally high Btu and will require processing within the next twelve months in order to be delivered into Spectra’s East Tennessee Natural Gas Pipeline. Atlas Energy’s affiliate, Atlas Pipeline Partners, L.P. (NYSE:APL) (“Atlas Pipeline”), is currently installing two natural gas processing plants that will be capable of serving a broad area of Eastern Tennessee. Atlas Pipeline’s ownership of these facilities, along with its recently acquired intrastate pipeline system, offers Atlas Energy an advantage in acquiring additional leasehold acreage.
In light of its expanding operations in Tennessee, Atlas Energy has named Ronald E. Huff to the position of President of its subsidiary, Atlas Energy Tennessee, LLC. Ron has already joined our talented and growing team in Oak Ridge, Tennessee. Ron brings over 25 years of experience in the oil & gas industry, including most recently President and Chief Financial Officer of Aurora Oil & Gas Corporation, and prior to that President and Chief Financial Officer of Belden & Blake Corporation.
“We are thrilled to have added Ron to our senior management team with responsibility of accelerating our growth in Tennessee and the Southern Appalachian Basin generally,” commented Richard D. Weber, President & Chief Operating Officer of Atlas Energy. “The combination of our growing acreage position, the horizontal development of the Chattanooga Shale, Atlas Pipeline’s control over significant gathering and processing assets and our exceptional operating team is quite exciting and we expect Tennessee to become another driver of growth at Atlas Energy.”
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 Appalachian Basin and northern Michigan. Atlas Energy sponsors and manages tax-advantaged investment partnerships, in which it co-invests, to finance the exploration and development of the Company’s acreage in the Appalachian Basin. Atlas Energy is active principally in Pennsylvania, Michigan and Tennessee. For more information, visit Atlas Energy’s website at http://www.atlasenergyresources.com or contact Investor Relations at firstname.lastname@example.org.
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.
CONTACT: Atlas Energy Resources, LLC
SOURCE: Atlas Energy Resources, LLC