The Energy Report - Atlas: Holding Down the Fort

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Atlas: Holding Down the Fort

AMIR ARIF, Stifel Nicolaus (02/10/2010)
"Within the core part of the Marcellus play (the key asset for the company's 3P NAV), the company holds about 260,000-300,000 net acres. About 50% of this core acreage is held by production and the remainder needing to be drilled over the coming few years. The company believes that it can manage these upcoming lease terms from a combination of (1) drilling Marcellus wells (2 rig program currently), (2) drilling shallow wells if need be (no puke clauses on most of its leases), (3) extending current leases. Additionally, based on a conversation with the company, Atlas states that it does have forced pooling rights built into the majority of its lease clauses allowing it to drill less wells to hold a similar amount of acreage relative to what other company's in the area would have to drill to hold the same amount of acreage."

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