This represents a 145 Bcfe net increase over the 5,220 Bcfe the company reported last year, and a reserve replacement ratio of 173%. Proved reserves increased in the Marcellus shale play as a result of wells drilled in 2011 and continued improvement in the estimated ultimate recovery (EUR) per Marcellus well. The EUR of proved developed Marcellus wells averaged 5.7 Bcfe, with an average length of pay of 4,050 feet; while proved undeveloped Marcellus wells averaged 6.3 Bcfe, with an average length of pay of 3,765 feet. Partially offsetting the Marcellus reserve additions was the elimination of Huron proved undeveloped reserves, consistent with the company's decision to suspend development of this play. Lower natural gas prices, the resultant reduction in projected cash flow and the company's decision to live within its means financially, drove this decision. Drill bit finding costs were $1.36 per Mcfe in 2011.
EQT estimates year-end 2011 total natural gas reserves, including proved, probable and possible reserve categories (3P), at 21.4 Tcfe.
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