Appalachia

Our operations in the Appalachia region have primarily included testing and selectively developing the Marcellus shale with horizontal drilling while maintaining our existing conventional production from shallow vertical wells. We currently hold approximately 290,000 net acres in the Appalachian basin, with approximately 145,000 of these net acres prospective for the Marcellus shale. A significant amount of this acreage is held-by-production. As of December 31, 2013, we operated a total of 5,801 vertical shallow wells flowing to sales and 124 horizontal wells in the Marcellus shale.

Our Pennsylvania acreage encompasses 23 counties. Drilling, completion and production activities target the Marcellus shale as well as the Upper Devonian, Venanago, Bradford and Elk sandstone groups at depths ranging from 1,800 to more than 9,000 feet. Our West Virginia area includes 27 counties and stretches from the northern to the southern areas of the state. Drilling, completion and production activities target the Marcellus shale and multiple reservoirs of the Mississippian and Devonian formations found at depths ranging from 1,500 to 8,100 feet.