operations
Operations

Appalachia

As of September 30, 2011, we had approximately one million net acres in Appalachia. We are currently focused on exploring the Marcellus Shale in Pennsylvania and have reserves and production from a variety of unconventional, coalbed methane and royalty properties in West Virginia, Virginia and Kentucky.

We have an estimated inventory of over 200 horizontal Marcellus Shale drilling locations on our approximately 35,000 net acres in Potter and Tioga Counties, Pennsylvania and approximately 20,000 net acres in other parts of this play. We operate our acreage in this play and expect reserves and production will will be comprised almost entirely of dry gas.  We plan to resume testing of our acreage in eastern Potter and western Tioga Counties in 2012 or 2013.