The U.S. Eastern seaboard's Atlas Energy Resources has completed a vertical well in the Marcellus Shale that produced a record five million cubic feet per day of natural gas into a pipeline and, after 25 days of production, has produced approximately 81 MMcf.

Atlas completed this well using a two-stage frac design pioneered earlier this year, which was drilled on the Company’s own account. The Company has now successfully completed seven two-stage vertical fracs in the Marcellus Shale and has averaged initial rates of production for 24 hours of 2.5 MM cfd.

The Company, one of the Eastern United States' largest, intends to complete all future vertical Marcellus wells with similar multi-stage fracs. Atlas has performed over 100 vertical Marcellus completions.

"These results reflect not only the effectiveness of our completion designs, but also the quality of our acreage," stated Richard D. Weber, President and Chief Operating Officer.

"The potential of horizontal wells having frac designs with up to eight stages is very exciting given the exceptional results from our two stage verticals."

Atlas expects to complete 12 wells by early in the second quarter of 2009.

The company is hedging gas prices through to 2013 at prices ranging from $8.00 to $9.00 per million cubic feet.

Tags: Atlas Energy Resources