Atlas Energy Increased Natural Gas Production

PITTSBURGH, Jul 07, 2010 (BUSINESS WIRE) -- Atlas Energy, Inc.(ATLS 28.38, +0.03, +0.11%) ("Atlas" or "the Company") reported today that net average daily production in the Appalachian segment reached a record of approximately 55 million cubic feet of natural gas equivalents ("Mmcfe") per day in the second quarter 2010, up approximately 21% from the first quarter 2010, due to strong results from new horizontal Marcellus Shale wells turned into line in the quarter and increased capacity on its legacy gathering system in southwestern Pennsylvania. In addition, the Company exited June 2010 with a net Appalachia production rate of approximately 59 Mmcfe per day. Gross Marcellus Shale production grew from 62.8 Mmcfe per day at the end of March 2010 to 81.9 Mmcfe per day at the end of June 2010, a 31% increase. Net Marcellus Shale gas production grew from 20.2 Mmcfe per day at the end of March 2010 to 33.2 Mmcfe per day at the end of June 2010, representing a 64% increase. Total company net production was approximately 110 Mmcfe per day for the second quarter 2010, a 10% increase over the first quarter 2010.

During the second quarter, Atlas turned into line a total of eight new horizontal Marcellus Shale wells in southwestern Pennsylvania with average peak daily rates of production of 5.1 Mmcfe per day. The lateral portion of each of these wells was landed low in the Marcellus section, which the Company believes is vital to maximizing production. As the table below demonstrates, wells landed low in the Marcellus section had average initial peak daily rates of production that were almost 138% higher than horizontal wells landed higher in the section.

"We are proud of the consistently strong results of our recent Marcellus Shale horizontal wells," stated Richard D. Weber, President of Atlas Energy, Inc. "With average initial rates of production in excess of 5 Mmcfe per day, we expect first year average production to be in excess of 2 Mmcfe per day per well. We have concluded that landing our laterals low in the Marcellus Shale section produces superior results and we intend to continue to drill our wells accordingly in the future."