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Permalink Reply by Jack Straw on October 14, 2014 at 2:28pm

RE: “The recent monster well discovery on the stewart winland pad in tyler county wv had eye opening ip flow of 46 mil with plus 7000 psi. What decline would make this well or wells not be worth drilling.”

A decline rate so steep as to result in the Operator not recovering their costs of acquiring the acreage, drilling and completing the well PLUS a good return on their investment.  The price at which the product can be sold OBVIOUSLY plays into this (sadly we are currently in a very low price environment).

 

RE: “Plus what would be a great decline rate”

A truly great decline rate would be no decline …. Actually, there is always the possibility that there will be some ‘clean up’ of the well and production  increases for a while before decline sets in.

Obviously the shallower the decline rate, the better.

 

RE: “Will the deep Utica wells hold up”

Not to be flippant; but, that is a question that can only be answered in the future …. looking back in the rear view mirror. 

We cannot expect the Utica to be homogeneous and isotropic …. some areas will ultimately behave better than others …. and it will take a lot of drilling to determine which areas do behave best …. and importantly, through time, and with experience; the Operators and their contracted Service Companies will gain knowledge that will allow them to optimize techniques and methodology that best fits individual areas of the Utica (there should be a combination of learning curve and improvements in current technology).

 

RE: “What are people’s opinions regarding this.”

My personal opinion is that we are all (Industry and Landowners) awaiting the answer to your questions …. only time will accurately reveal the answers to your questions.

 

All IMHO,

                     JS

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Permalink Reply by Bill Barnaby on October 14, 2014 at 2:56pm

Now the question is, is the Utica better, or is it the drilling techniques that are better.

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Permalink Reply by Jack Straw on October 14, 2014 at 3:37pm

RE: "the question is, is the Utica better, or is it the drilling techniques that are better"

Not sure whether you are referencing the location within the Utica or the Utica versus Marcellus.

Utica versus Marcellus:

Natural gas (as a gas) is compressible.

The greater the pressure, the more natural gas that is able to be present in a given space.

Utica is found several thousand feet beneath the Marcellus   .... the deeper the sediments, the greater the pressure ... and the more natural gas that is able to be present in a given space.

However, with the deeper the sediments, and the greater the pressure .... results in higher drilling costs and higher fracing and completion costs.

If you were attempting a comparison of one area of the Utica versus another .... the search for the most economic areas continues, as exploration of the Utica (and Marcellus) is still in it's earliest days.

Personally, I cannot believe that drilling and completion techniques have yet to be optimized for each area ... not enough wells (data points), large areas not yet penetrated to the Utica .... we are still early on the learning curve. Also, Operators are likely piggy-backing on what knowledge and techniques that they have learned from the area's Marcellus.

My personal opinion is that the referenced well is in a particularly good area .... an area at an optimum depth with good source/reservoir characteristics. And drilling and completion techniques could (and probably did) contribute to the results. But, on my part, these are just guesses.

All IMHO,

                  JS

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Permalink Reply by jason irvine on October 15, 2014 at 5:07am

Thank you so much for your response.

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