Alcoa Wins Pennsylvania General Energy Contract to Supply Aluminum Alloy Drill Pipe for Marcellus Shale Field Exploration

August 2, 2012

NEW YORK–Alcoa (NYSE: AA) announced today that Alcoa
Oil & Gas
was awarded a contract from Pennsylvania General
Energy (PGE) to produce 3,500 feet of aluminum
alloy drill pipe
for gas drilling in the Marcellus
formation of Central Pennsylvania.

Alcoa’s 4.5” drill pipe will extend the reach of the carrier-mounted
drilling rig used on natural gas wells in the Marcellus Shale formation
to a total depth of approximately 7,500 feet. This is 1,000 feet deeper
than conventional steel drill pipe can penetrate without using larger,
more costly rigs.

Alcoa’s innovative drill pipe is a tapered, high-strength, aluminum
alloy tube coupled with proprietary thermal connection technology that
allows steel tool joints to attach to the aluminum pipe’s body. This
feature optimizes the pipe’s strength-to-weight ratio and gives it the
capability to be used with steel pipe. Alcoa’s pipe design and unique
aluminum construction make it up to 50 percent lighter than steel pipe,
yet it maintains the durability and strength of steel. The Alcoa pipe
significantly increases a rig’s operating efficiency while allowing for
deeper drilling.

“The high strength-to-weight ratio of Alcoa pipe will allow PGE to drill
deeper with less energy-intensive rigs and to maintain a smaller
drilling footprint, which is a win for PGE, our land owners, and the
environment,” said Justin L. Hansen, Drilling Engineer, PGE.

“We are pleased that Pennsylvania General Energy recognizes the value
Alcoa drill pipe can bring to challenging drilling projects like those
in the Marcellus Shale formation,” said Dr. Jamal Righi, General
Manager, Alcoa Oil & Gas. “For deep drilling, it is possible to move
twice the amount of Alcoa pipe than steel pipe, with reduced torque and
drag, making Alcoa pipe the preferred drill pipe for efficient
deep-drilling exploration.”

Pennsylvania General Energy has 30-plus years of oil and natural gas
development experience in the Appalachian Basin and was one of the first
companies to explore the Marcellus formation and successfully drill a
well in 2005.

About Alcoa Oil & Gas

Alcoa Oil and Gas offers customized solutions specific to the oil and
gas and neighboring industries, including strong, light weight Aluminum
Alloy Drill Pipe, subsea riser systems, engineered forgings and
extrusions and fabricated products. Alcoa’s aluminum alloy technology
can help enable design solutions which offer up to 50% weight savings
for the oil and gas market, including the construction of high-strength,
low-weight drilling risers, already proven in demanding deep water
applications. For more information, visit
or contact Jay Grissom at

About Alcoa

Alcoa is the world’s leading producer of primary aluminum, fabricated
aluminum and alumina. In addition to inventing the modern-day aluminum
industry, Alcoa innovation has been behind major milestones in the
aerospace, automotive, packaging, building and construction, commercial
transportation, consumer electronics and industrial markets over the
past 120 years. Among the solutions Alcoa markets are flat-rolled
products, hard alloy extrusions, and forgings, as well as Alcoa® wheels,
fastening systems, precision and investment castings, and building
systems in addition to its expertise in other light metals such as
titanium and nickel-based super alloys. Sustainability is an integral
part of Alcoa’s operating practices and the product design and
engineering it provides to customers. Alcoa has been a member of the Dow
Jones Sustainability Index for ten consecutive years and approximately
75 percent of all of the aluminum ever produced since 1888 is still in
active use today. Alcoa employs approximately 61,000 people in 31
countries across the world. More information can be found at