Spanish oil major Repsol said Thursday its shale gas production in the Marcellus Shale play could grow by 50% by the end of 2020, Kallanish Energy learns.
Speaking at an industry conference in New York, Repsol’s executive director for North America, Paul Ferneyhough, said the goal can be achieved with the addition of just one rig and investment of roughly $400 million a year.
“We are going to be able to raise production by 50% and be cumulative cash flow positive by the end of 2020,” he said.
The Marcellus Shale yields 47% of the company’s total production in North America, with an average gas output of 490 million cubic feet per day (Mmcf/d). The company holds an interest in 168,400 net acres in the Marcellus, located primarily in northeastern Pennsylvania, in Bradford, Susquehanna and Tioga counties.
Repsol also owns and operates midstream assets in Pennsylvania comprising roughly 315 miles of production and gathering pipelines, which are serviced by eight compression and gas dehydration facilities.
The midstream assets, having a meter sales capacity of 1.5 billion cubic feet per day (Bcf/d), and currently deliver gas into multiple interstate pipeline systems.