Replies to This Discussion

Permalink Reply by cheliped on May 10, 2013 at 3:25am

Oliver,

Thanks again for providing us with information.  I am wondering how much the Upper Devonian contains and why there is not more discussions about it.  Is there something that the oil/gas companies are keeping quiet about the Upper Devonian?  I think we are fortunate in Butler County with all of the shale formations and hope it proceeds quickly.

Permalink Reply by Oliver Perry on May 10, 2013 at 6:04am

I wish Swepi would move ahead more quickly but they seem to be very deliberate with their exploration strategy. XTO & REX are in the production mode, while Swepi is still experimenting, it's frustrating but that's the way they operate.

REX Energy has done some drilling into the Upper Devonian in Butler County. I think they are encouraged with the results. Check out the attached corporate presentation from May, 2013. There is quite a bit of good info about their Butler County operations, including the Upper Devonian drilling they have done.

Attachments:

• Rex Energy Corporate Presentation - May 2013.pdf, 2.6 MB

Permalink Reply by James E. Waldeck on May 10, 2013 at 9:01am

On April 30 Shell permitted a vertical OIL well on the Renick pad. I have been following permits for years and this is the first time I have seen one of the majors in PA permit an oil well. I suspect it is targeting the Rhinestreet. Rexx fracked a legacy well in the Rhinestreet last year and claim they got a good show of liquids. Do any of you locals know what this is targetting?

Considering what Rexx has been getting out of their Burkett well I have to agree that it is one formation that demands more drilling. Shell has a large evaluation plan. In McKean, Warren, Elk and Forest they have permitted 40 to 50 wells on 9 pads. Not all the pads have been built. They are very deliberate. After they drill they evaluate. They have brought a rig back for more drilling but they are still in the evaluation mode. I would say what is happening in Butler Mercer and Lawrence more resemble a production mode.

Permalink Reply by Oliver Perry on May 10, 2013 at 11:55am

James,

With all due respect, an oil well permitted on the Renick Pad would be news to me. The Renick 3468-1X was permitted on April 29, but it is a vertical gas well targeted to the Marcellus, see the attached well permit application and the DEP link with all the Renick permit details. 

Please post the details where I can see the permit for this oil well if you would, thanks.

http://www.ahs.dep.pa.gov/eFACTSWeb/searchResults_singleSite.aspx?S...

Attachments:

• Swepi - Renick 3468-1X Well Permit.pdf, 1.7 MB

Permalink Reply by James E. Waldeck on May 10, 2013 at 12:57pm

Butler

Center Twp

4/29/2013

SWEPI LP

NEW

Drill & Operate   Well Permit

019-22057

Yes

Vertical Well

OIL

RENICK 3468 1X

 

Well type is OIL. Every well permit I have seen from majors, including Shell, lists gas. This is from the DEP site. Link.

http://www.portal.state.pa.us/portal/server.pt/community/oil_and_ga...

Thanks for posting the actual permit. I will read it over and try to figure out what they are targeting. Usually they drill these verticals to get a good look at the play below to determine the sweet spot. Then they plug back and kick off for their lateral. In the shallow fields they frack everything on the way down. (Rhinestreet would be above the Marcellus) I have been intrigued with the Rhinestreet liquid play ever since last year when Rex fracked into the Rhinestreet in an old legacy well and said it had a good liquid yield.

Permalink Reply by James E. Waldeck on May 10, 2013 at 1:08pm

I looked over the permit. There is definately a conflict between the DEP listing and the permit. I would say it is likely an error in the DEP listing, but there is nothing that would stop them from fracking the Rhinestreet in a vertical test oil well.