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Permalink Reply by William Harris on December 11, 2013 at 1:35am

Utica,

Is that the average per well, or per unit (640 acres), Because Im thinking they can get 6-8 wells per pad?

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Permalink Reply by William Harris on December 11, 2013 at 3:58am

Thanks for the clarification.

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Permalink Reply by Sam Moore on December 17, 2013 at 4:04am

300 barrels of oil per day average sounds high? That would make the average well producing over 16 million a year?

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Permalink Reply by Zack Smith, Geologist/Appraiser on January 2, 2014 at 7:53am

There is no such thing as an "average" well output - two wells on the same pad can easily differ by a factor of two and "average" production per well can differ by a factor of 5 between adjoining units. That being said, there are areas in PA where 15 Mmcf/day is not at all unusual.

I'm a geologist working in mineral appraisal/valuation and the variations in production generally have more to do with whether or not the gas company wants to operate that well at full capacity. Gas prices are relatively low at this time and they don't want to flood the market again as they did at the end of 2011/early 2012.

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Permalink Reply by INVICTUS on January 25, 2014 at 12:07am

For the Utica, can you comment in general what you are seeing concerning EUR's, decline curves, and timeframes (i.e., what is the "lifetime" of a well) for the purposes of an estimated cash flow analysis? You can tell I'm trying to generate some reasonable NPV's.

Invictus

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