As a part of the United States Department of Energy's Eastern Gas Shales Project, INTERCOMP was contracted in the fall of 1978 to provide a comprehensive analysis of the production of natural gas from Devonian shale. The analysis was divided into two contract phases. The first of the two phases included data assimilation and analysis, and the validation of a numerical model of the Devonian shale. A final report on this phase was submitted in April, 1979. Shortly after the draft final report was submitted in September, 1978, INTERCOMP received and began work on the second contract phase. Included in this phase were: (1) a geological and petrophysical analysis which included a review of logs run, an investigation of new log analysis techniques, and a study of core analysis results; (2) a continued effort to more conclusively identify the production mechanism in effect in the Devonian shale; (3) a sensitivity analysis of various reservoir and stimulation parameters; (4) a study of well pressure testing procedure and test analysis techniques; (5) an economic analysis of drilling on closer spacing. Detailed herein are the results of the work outlined above. 118 figures, 7 tables.