National Fuel Announces Significant Marcellus Shale Well Results

  National Fuel Announces Significant Marcellus Shale Well Results

Business Wire

WILLIAMSVILLE, N.Y. -- January 22, 2013

Seneca Resources Corporation (“Seneca”), the wholly owned exploration and
production subsidiary of National Fuel Gas Company (NYSE: NFG) (“National
Fuel” or the “Company”), has announced initial results from six recently
completed Marcellus Shale wells within its DCNR 100 tract in Lycoming County,
Pa.

Seneca has completed six new Marcellus Shale wells on a pad located within its
DCNR 100 tract in Lycoming County, Pa. These six wells had 24-hour peak
production rates averaging 17.8 million cubic feet (“MMcf”) of natural gas per
day, five of which represent the highest peak production rates of any wells
operated by Seneca in the Marcellus. Treatable lateral lengths on these wells
ranged between 4,292 and 5,101 feet and they were completed with 14 to 18 frac
stages per well. All six wells are expected to be flowing into National Fuel
Gas Midstream Corporation’s Trout Run Gathering System by the end of January.

David F. Smith, Chairman and Chief Executive Officer of National Fuel, stated,
“The success we are achieving in Lycoming County validates the prolific nature
of the Marcellus in this area. With three wells reaching peak production rates
above 20 MMcf of natural gas per day, and all six reaching a combined 24-hour
peak production rate of 107 MMcf of natural gas per day, these wells represent
some of the most productive wells ever drilled in the Marcellus by any
operator. With two drilling rigs running in Lycoming County, and without the
production infrastructure constraints facing many other operators in the
Marcellus, we anticipate this acreage will be a key driver of Seneca’s
production growth over the next two to three years.”

Well Name     Treatable       Number of Stages  24-Hour Peak Production
               Lateral Length
DCNR 100 3H    5,101’           18                 21.4 MMcf
DCNR 100 6H    4,807’           17                 20.9 MMcf
DCNR 100 7H    4,840’           17                 18.8 MMcf
DCNR 100 8H    5,054’           18                 20.2 MMcf
DCNR 100 9H    4,292’           14                 8.0 MMcf
DCNR 100 66H   4,845’           17                 17.7MMcf

Including these six wells, Seneca expects to have a total of 15 wells
producing into the Trout Run Gathering System by the end of January.
Additionally, 16 more wells on the DCNR 100 tract will be completed this
fiscal year, with approximately 25 more scheduled for completion in Fiscal
2014. The Company plans to provide further details on its Appalachian
operations during its scheduled earnings teleconference on February 8, 2013.

National Fuel is an integrated energy company with $5.9 billion in assets
comprised of the following four operating segments: Exploration and
Production, Pipeline and Storage, Utility, and Energy Marketing. Additional
information about National Fuel is available at www.nationalfuelgas.com or
through its investor information service at 1-800-334-2188.

Certain statements contained herein, including statements identified by the
use of the words “anticipates,” “estimates,” “expects,” “forecasts,”
“intends,” “plans,” “predicts,” “projects,” “believes,” “seeks,” “will,” “may”
and similar expressions, and statements which are other than statements of
historical facts, are “forward-looking statements” as defined by the Private
Securities Litigation Reform Act of 1995. Forward-looking statements involve
risks and uncertainties, which could cause actual results or outcomes to
differ materially from those expressed in the forward-looking statements. The
Company’s expectations, beliefs and projections contained herein are expressed
in good faith and are believed to have a reasonable basis, but there can be no
assurance that such expectations, beliefs or projections will result or be
achieved or accomplished. In addition to other factors, the following are
important factors that could cause actual results to differ materially from
those discussed in the forward-looking statements: factors affecting the
Company’s ability to successfully identify, drill for and produce economically
viable natural gas and oil reserves, including among others geology, lease
availability, title disputes, weather conditions, shortages, delays or
unavailability of equipment and services required in drilling operations,
insufficient gathering, processing and transportation capacity, the need to
obtain governmental approvals and permits, and compliance with environmental
laws and regulations; changes in laws, regulations or judicial interpretations
to which the Company is subject, including those involving taxes, safety,
climate change, other environmental matters, real property, and exploration
and production activities such as hydraulic fracturing; changes in the price
of natural gas or oil; impairments under the SEC’s full cost ceiling test for
natural gas and oil reserves; uncertainty of oil and gas reserve estimates;
significant differences between the Company’s projected and actual production
levels for natural gas or oil; governmental/regulatory actions, initiatives
and proceedings; delays or changes in costs or plans with respect to Company
projects or related projects of other companies, including difficulties or
delays in obtaining necessary governmental approvals, permits or orders or in
obtaining the cooperation of interconnecting facility operators; financial and
economic conditions, including the availability of credit, and occurrences
affecting the Company’s ability to obtain financing on acceptable terms for
working capital, capital expenditures and other investments, including any
downgrades in the Company’s credit ratings and changes in interest rates and
other capital market conditions; changes in economic conditions, including
global, national or regional recessions, and their effect on the demand for,
and customers’ ability to pay for, the Company’s products and services; the
performance of the Company’s key suppliers counterparties; or economic
disruptions or uninsured losses resulting from major accidents, fires, severe
weather, natural disasters, terrorist activities, acts of war or cyber
attacks. The Company disclaims any obligation to update any forward-looking
statements to reflect events or circumstances after the date thereof.

Contact:

National Fuel Gas Company
Analyst: Timothy J. Silverstein 716-857-6987
Media: Karen L. Merkel 716-857-7654