Eclipse Resources Announces Operational Update

3/26/18

STATE COLLEGE, Pa.--(BUSINESS WIRE)--Eclipse Resources Corporation (NYSE:ECR) (the “Company” or “Eclipse Resources”) today is pleased to provide an operational update, update its projections regarding its Marcellus Condensate type curve and announce the Company’s participation in the investor conference listed below:

Upcoming Investor Conferences

Tuesday March 27th – Wednesday March 28th (New Orleans, LA):Scotia Howard Weil 2018 Energy Conference. Benjamin W. Hulburt (Chairman, President and CEO) will present and host investor meetings along with Matthew R. DeNezza (Executive Vice President and CFO).

The Company’s updated investor presentation, which is posted on the corporate website at www.eclipseresources.com under the investor relations section, will be referenced during the conference.

Operational Update

  • Based upon the performance of the two Marcellus wells that were turned to sales in January 2018, the Company has updated its Marcellus Condensate type curve. The type curve has a projected EUR of 1.8 Bcfe per 1,000 foot of lateral and an anticipated well level rate of return of approximately 73%1.
  • The Company successfully drilled its longest Utica Dry Gas well to date, the Wiley D 8H, with a total measured depth of approximately 30,130 feet and a lateral extension of approximately 19,335 feet in 20.5 days from spud to total depth, setting a new lateral length record for a Dry Gas well for the Company.
  • The Company has recently spud its first Flat Castle operated well, the Painter 2H, with an expected lateral length of approximately 13,500 feet in the Company’s newly acquired Flat Castle acreage located in Tioga County, Pennsylvania.
  • The Company has reaffirmed its first quarter 2018 production guidance of 304 to 311 MMcfe per day with the expectation that production will be above the midpoint of such guidance range.
  • The Company has recently added to its 2018 and 2019 natural gas hedge portfolio:
    • The Company has approximately 82% of expected 2018 natural gas production hedged at an average floor price2 of $2.93 per MMBtu and an average ceiling price of $3.26 per MMBtu.
    • The Company has an average of 142,500 MMBtu per day of expected 2019 natural gas production hedged at an average floor price2 of $2.83 per MMBtu and an average ceiling price of $2.94 per MMBtu.

1Based upon $3.00 per Mcf natural gas and $55 per barrel oil pricing.
2 For the purposes of calculating three-way floor price, the higher valued put is used.

Commenting on the operational announcement, Benjamin W. Hulburt, Chairman, President and Chief Executive Officer, said, "The Company’s two Marcellus wells, which were turned to sales in January 2018, have shown strong initial production characteristics with the early well performance providing higher gas production with an initial gas production rate average of 6.7 Mmcf per day while yielding approximately 68 barrels of condensate per Mmcf. We have made upward adjustments to our internal gas EUR estimates to over 1.25 Bcf per 1,000 foot as we have been able to flow the wells harder than we planned, while pressure drop has slowed over that same time period. Based upon this out-performance we have seen from these two wells, the Company has increased its Marcellus Condensate type curve expectation to 1.8 Bcfe per 1,000 foot of lateral. These results exceed our anticipated expectations and help de-risk this set of high returning, liquids weighted locations, and we remain excited for the prospect of this area becoming a more meaningful part of our drilling program in the future, as we can now co-develop both the Utica and Marcellus on the same pad.”

“Additionally, the Company has continued to showcase its operational capabilities, successfully drilling its longest Dry Gas lateral to date, the Wiley D 8H, with a total measured depth of approximately 30,130 feet and a lateral extension of approximately 19,335 feet. This well was drilled from spud to total depth in 20.5 days and set a new Utica Dry Gas lateral length record for the Company. Our team has also now spud the Company’s first Flat Castle area well, which will include a number of scientific and data mining technical applications to allow us to further study the potential of this new area. We anticipate turning this well to sales late in the third quarter of 2018.”

“I am pleased to note that, based upon recent State of Ohio cumulative production data, Eclipse Resources had eight of the top ten oil producing wells during the fourth quarter of 2017. We believe this data further confirms the Company’s competitive advantage over other Appalachian producers primarily due to our Super Lateral development capabilities. We remain highly confident in our total production forecast for the first quarter of 2018, despite the harsh winter operating environment we have experienced in the Appalachian Basin.”

About Eclipse Resources

Eclipse Resources is an independent exploration and production company engaged in the acquisition and development of oil and natural gas properties in the Appalachian Basin, including the Utica and Marcellus Shales. For more information, please visit the Company’s website at www.eclipseresources.com.