Business, Government Legal News from throughout WVNoble, CONSOL reducing Marcellus drilling in dry gas areas of WV

Noble Energy Inc., which partners with CONSOL Energy to drill for natural gas in Marcellus shale formations, announced its production strategy Thursday shortly after releasing its financial results for the fourth quarter and for the year.

Noble reported a net loss of $296 million in the fourth quarter on revenues of $985 million. It attributed the loss to an asset impairment charge and an unrealized commodity derivatives loss. Excluding those items, fourth quarter adjusted net income was $211 million, up from $52 million on revenues of $783 million in the fourth quarter of 2010.

For the year, Noble reported net income of $453 million, down from $725 million in 2010.

In a conference call with analysts, Charles D. Davidson, chairman and CEO of Noble Energy, discussed the company's Marcellus strategy. He said Noble and CONSOL have jointly decided to slow the pace of development in dry gas regions of the field.

Dry gas wells produce mainly natural gas, or methane, as opposed to wet gas wells, which produce methane along with liquids such as ethane that can be processed into raw materials for petrochemicals industries.

Part of the capital that had been allocated for Marcellus drilling this year will be used elsewhere, Davidson said.

David L. Stover, president and COO of Noble, told analysts that drilling completion costs remains at around $5 million per well. Noble and CONSOL have deferred drilling in northwest West Virginia and southwestern Pennsylvania. The two companies will continue to acquire leases and permits in anticipation of a rebound in gas prices, he said.