Seneca Resources Announces 10 Million Cubic Feet Of Natural Gas Flow Each Day

Seneca Resources Corporation announced this week its third Seneca-operated horizontal Marcellus Shale well flowed at an initial 24-hour rate of over 10 million cubic feet per day (“Mmcfd”) and averaged 9.5 Mmcfd over seven days.

In addition, the Company’s wholly owned subsidiary, National Fuel Gas Midstream Corporation, began flowing gas on its Covington Gathering System in November 2009.

“We continue to make considerable progress on our Marcellus related initiatives. The successful completion of our third Seneca-operated horizontal Marcellus well and our ability to complete the Covington project in such an efficient manner demonstrates our ability to execute on our Marcellus strategy.”

Matthew D. Cabell, President of Seneca, stated, “Our 7-day initial production rates for our Tioga County horizontals are averaging 6.7 Mmcfd, far above the industry average. With three high-rate wells drilled and completed, we are more confident than ever in our ability to efficiently and effectively develop our substantial acreage position. We now have two Seneca-operated horizontal rigs running and anticipate drilling 50-70 horizontal wells during fiscal 2010, including those operated by EOG Resources in our joint venture.”

Located in Tioga County, Pennsylvania, construction on Covington began in July 2009 and gas began flowing on November 17, 2009. Midstream’s Covington system consists of eight miles of mostly 12-inch high-pressure gathering lines, dehydration facilities and an interconnection to the Tennessee Gas Pipeline system operated by El Paso Corporation. Covington will serve natural gas producers in the region, including Seneca, with daily capacity of up to 100 million cubic feet. Midstream will continue to expand Covington throughout the upcoming winter.

David F. Smith, President and Chief Executive Officer of National Fuel Gas Company added, “We continue to make considerable progress on our Marcellus related initiatives. The successful completion of our third Seneca-operated horizontal Marcellus well and our ability to complete the Covington project in such an efficient manner demonstrates our ability to execute on our Marcellus strategy.”