Question-and-Answer Session
Operator
(Operator Instructions) Your first question comes from Gil Yang – Citigroup.
Gil Yang – Citigroup
I was wondering if you could give a little bit more information about some of the well results in the Marcellus and Quebec land holdings?
John A. Manzoni
I’m going to look at Ron here and see if we’ve got any additional detail we want to give?
Ronald J. Eckhardt
Sure. I’ll give you an update on Marcellus. We’ve drilled four wells to date with test rates averaging 3 million a day for the horizontal wells and EURs seem to be right where we had them pegged between 2.5 and 3 bcf per well. Our completion costs are coming down as John mentioned in the call and our last well was drilled and completed for around $4.3 million. These are still one off drilling and we haven’t yet started in to [pagulin] programs so I see further improvements there.
Just to add to that we’ve secured 200 million a day from egress capacity from our lands in Pennsylvania and we’re set up to move ahead with our drilling program this year.
Gil Yang – Citigroup
That egress capacity is for 2012?
Ronald J. Eckhardt
Yes. But, we do have 100 million a day for 2010 as well. Then, there’s interruptible service prior to that but this is firm.
Gil Yang – Citigroup
And in the Utica shale?
Ronald J. Eckhardt
Well in Quebec, a little update there, we just finished fracing the [inaudible] well. This was our second vertical well and we just frac’d both the Lorraine and Utica and we’re just flowing them back now so I really don’t have any more new information. We finished drilling the [inaudible], it’s been drilled and logged and we’re picking zones to complete there. And, we’ve spudded [Le Clerkville] well on January 9th. So that program is moving ahead quite well. We expect to spud the Saint Edward well by mid to late February.
Gil Yang – Citigroup
Now your comment John that North America unconventional would be the primary user of incremental cash flow, does that imply that the returns are better there or they are just better on a risk adjusted perspective?
John A. Manzoni
I think the later is true, that’s on a risk adjusted basis. Clearly, some of our other areas, if you have an incremental dollar of capital some of the things in the North Sea are very high return, very high cash return and very high income return. But, on a risk adjusted basis in the light of our strategic focus and for the future in the long term growth them we’ve elected to put the incremental capital in the unconventional activity in North America.
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