Gas In Place (GIP) Analysis Shows Greatest Potential in SW PA per RRC

See RRC's October 29, 2013 Presentation that shows the GIP (Gas In Place) for the Utica/Point Pleasant, Upper Devonian and Marcellus Shales:

http://phx.corporate-ir.net/phoenix.zhtml?c=101196&p=irol-prese...

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Permalink Reply by Tim Tarr on November 6, 2013 at 5:29am

That map is from Vanmeter's presentation Here's the whole thing.

http://www.searchanddiscovery.com/documents/2012/50738vanmeter/ndx_...

on page 23 of that file:

Reservoir mapping indicated two reservoir “fairways” in Pennsylvania.
 In southern PA there are two reservoir packages, whereas in
northeastern PA the Burkett is the main reservoir.

Pay particular attention to that "packages". Not just two reservoirs !

Permalink Reply by Philip Thackray on November 6, 2013 at 11:57am

Tim,

Yes, I have the full presentation.  In fact VanMeter himself sent me the link during an email discussion we had following his presentation of the paper.

Your earlier post about a Rhinestreet well near you (Washington County) was quite a surprise.  It has been generally assumed that Range's Upper Devonian activity was to the Burkett.  Rex keeps saying that they intend to frack an old vertical well that goes through the Rhinestreet but I have heard nothing about any results.

Based on VanMeter's presentation, the Rhinestreet sweet spot appears to be mostly in Allegheny county but extends to southern Butler County and Northern Washington county.  It is very possible that the "stacked" plays could include 4 shale layers (in some areas), something I thought after first seeing VanMeter's presentation last year.  I have not heard anyone talk about the Middlesex.

Regards,

Phil

Permalink Reply by Todd on November 7, 2013 at 5:19pm

Phil,

What are your thoughts on the Rhinestreet in southern Beaver County and Hancock County, WV?

Thanks for your evaluation.

Todd

Permalink Reply by Philip Thackray on November 8, 2013 at 2:46am

Todd,

I wish I was qualified to answer your question but I’m just a curious landowner.  The Range presentation you posted at the start of this post and the VanMeter presentation that Tim Tarr posted above are the most modern pieces of information that I have seen.  One of the documents that started all of this is found here The Eastern Gas Shale Project.  The “Plates” are links to maps which are referred to in the “text” document.  One of the Plates is a map of the radioactive Rhinestreet.  Each “Plate” is quite large (7-10 megabytes).  For myself, I uploaded each Plate, renamed the file based on the legend on the map and saved them in a file folder.  I assume that Range and VanMeter have better and more recent data as the maps in those presentations differ from the EGSP maps.

One important piece of information is how “frackable” is the shale.  You would like to have an unfrackable limestone barrier above and below the shale you want to frack – see the Marcellus interval on the Range “PA stacked pays” diagram I posted on the previous page.  In the most recent Rex presentation (Nov 6, 2013 page 17) a test of the expected impenetrability of the Tully limestone is proposed – which gives you some idea about how little is actually known about what goes on down there.  How frackable is the Rhinestreet – I don’t know.

I was most interested when Tim Tarr said there was a Rhinestreet well in Washington County – but until/or if Range talks about it ????.

As a landowner in the “Stacked pay” region of Southern Butler County, PA I’m very interested in all of this – if anyone learns more about what is going on I hope they post the information here.

Regards,

Phil

Permalink Reply by Todd on November 8, 2013 at 7:16am

Ok thanks Phil,

Who are you leased with?  Rex Energy is drilling many important wells in your area to the Upper Devonian Burkett and Marcellus Shales:

http://ir.rexenergycorp.com/events.cfm

http://ir.rexenergycorp.com/releases.cfm

Rex is getting great results from both formations in your area!

Operational Update

Note: Unless specifically stated otherwise in this operational update, all numbers are gross; all well results assume full ethane recovery and all wells were completed using the company’s 150′ “Super Frac” design.

Appalachian Basin — Butler Operated Area, Pennsylvania

In the Butler Operated Area, the company drilled four gross (2.8 net) wells in the third quarter of 2013, with eight gross (5.6 net) wells fracture stimulated and nine gross (6.3 net) wells placed into sales. The company had nine gross (6.3 net) wells drilled and awaiting completion as of September 30, 2013.

Marcellus Results

The company placed into sales five (3.5 net) Marcellus wells in the Butler Operated Area in the third quarter of 2013. The average 5-day rate of these wells was 6.2 MMcfe/d from an average lateral length of 3,273 feet. Three of the five wells placed into sales were completed with lateral lengths below 3,300 feet. After adjusting the lateral lengths to 4,000 feet, the average 5-day sales rate would have been 7.8 MMcfe/d. In addition, the wells averaged 1,228 BTU and produced 51% liquids.

The tables below list, where available, the 5-day and 30-day sales rates for the company’s recent completions.

Upper Devonian Burkett Results

During the third quarter, the company placed into sales its fourth Upper Devonian Burkett well, the Stebbins 2H. The Stebbins 2H was drilled to a total measured depth of 8,711 feet with a horizontal lateral length of 2,825 feet and was completed in 19 stages. Based on composition analysis, the gas being produced is approximately 1,215 BTU.

The company also placed into sales the Perry Township 1HD, the company’s fifth Upper Devonian Burkett well and second “Super Rich” Upper Devonian Burkett well. The well was drilled to a total measured depth of 9,806 feet with a horizontal lateral length of 4,588 feet and was completed in 31 stages. Based on composition analysis, the gas being produced is approximately 1,314 BTU. By the end of 2013, the company expects to have seven Upper Devonian Burkett wells flowing into sales.

The company is completing the six-well Baillie Trust pad and the wells will be shut-in for a 30-day resting period. As previously reported, the six-well Baillie Trust pad includes two Upper Devonian Burkett wells in addition to four Marcellus wells. The two Upper Devonian laterals are offset above the laterals in the Marcellus formation. In addition, the company is testing 600 foot spacing between the Marcellus laterals. The six-well Baillie Trust pad was drilled with an average lateral length of 4,337 feet, which represents the company’s longest average lateral length for wells drilled from a single pad to date in the Butler Operated Area.

The tables below list, where available, the 5-day and 30-day sales rates for the company’s recent completions.

5-Day Sales Rate (Average Per Well)
Well Name Target Formation Natural Gas (Mcf/d) NGLs / Condensate (Bbls/d) a % Liquids Total — Ethane Recovery (Mcfe/d) Total — Adjusted to 4,000′ Lateral Total - Ethane Rejection (Mcfe/d)
Lynn N&S 3H, 5H Marcellus 3,650 550 47% 6,946 10,059 4,909
Rape 2H Marcellus 3,360 501 47% 6,362 6,233 4,530
Warner 1H, 2H Marcellus 2,476 468 53% 5,282 5,305 3,683
Stebbins 2H Upper Devonian 2,838 443 48% 5,492 7,776 3,916
Perry Township 1HD “Super Rich” Upper Devonian 2,379 481 55% 5,267 4,592 3,762
a. Condensate average was approximately 10 bbls/d for wells shown above
30-Day Sales Rate (Average Per Well)
Well Name Target Formation Natural Gas (Mcf/d) NGLs / Condensate (Bbls/d) a % Liquids Total — Ethane Recovery (Mcfe/d) Total — Adjusted to 4,000′ Lateral Total - Ethane Rejection (Mcfe/d)
Rape 2H Marcellus 2,944 439 47% 5,576 5,463 3,971
Warner 1H, 2H Marcellus 2,152 399 53% 4,547 4,566 3,156
Stebbins 2H Upper Devonian 2,381 369 48% 4,592 6,502 3,268
Perry Township 1HD “Super Rich” Upper Devonian 1,819 369 55% 4,030 3,514 2,880
a. Condensate average was approximately 8 bbls/d for wells shown above
Total Operated Area — Butler County, PA
  Wells Drilled Wells Fracture Stimulated Wells Placed Into Sales Wells Awaiting Completion
YTD 2013 17 24 19 11
FY 2013 Forecast 19 26 23 11

Good Luck,

Todd

 

Permalink Reply by Philip Thackray on November 8, 2013 at 8:03am

 

Hi Todd,

Thanks for all the information!  I also have a discussion at the GMS PA state Butler County location on the Upper Devonian.  It is certainly a welcome addition to the Marcellus and Utica intervals we have here.

In Butler County, Forward Township I'm leased to XTO and am in the Marburger B Unit which currently has two completed wells on the pad and is in production as of the beginning of October.  Those are Marcellus wells.  The XTO people tell me that they will likely not do the Burkett at this time which makes sense for a company that is not tying to push their production or reserves up as W. PA is a small blip on the stock value of XTO/Exxon.  They are just running around doing the Marcellus to hold all the layers and getting the infrastructure put in place.  They go through the Burkett each time they drill a Marcellus so they certainly know what is down there.  If you believe the Range report, the Upper Devonian is best to the east of where Rex has their Burket wells and that is the area that XTO has concentrated on.

Phil

Permalink Reply by Todd on November 8, 2013 at 8:33am

Hey Phil,

Are you in SW Butler County?

I'm only about a mile west of the Beaver County line in Hancock County.

Hancock County's GIP appears to be very similar to SW Butler County, especially for the UD and Utica Shales.  Hancock County is definitely in the middle of the Utica trend of SE Jefferson County, Ohio and SW Butler County, PA:

http://www.eclipseresources.com/wp-content/uploads/2012/11/January-...

See Pages 10 and 14 especially.  I know this is dated somewhat but I had a good idea of the trend well prior to Range's GIP release.

Now, I'm headed to Disney World with the fam! 

Let me know what you think and Good Luck with your unit!

Todd

Permalink Reply by Philip Thackray on November 8, 2013 at 9:57am

Todd,

Marburger B is in Forward township.

Things look good over your way as well! 

I love Disney World.  Good off-site dining at Hemingway’s in the Hyatt Grand Cypress Hotel.  "In park dining"  Flying Fish Café in Boardwalk

Nice character breakfast - Cape May Café in Beach Club Resort.

Enjoy!

Phil

Permalink Reply by Tim Tarr on November 8, 2013 at 11:08am

I've been looking at some well plats in my area and did some "homework".

I used Tully as my marker. Your results may vary due to different local geology.

  There is ~398 feet between base of Elk and Tully. In that 398 feet are those Black Shales (Rhinestreet, Middlesex and Burkett) with the Burket  ~28 feet above the Tully.

 Whats very interesting is the Elk isn't supposed to be this far West ! Than again the Rhinestreet isn't here either! HA

  The Marcellus is ~130 feet below the Tully.

                                           Now some food for thought.

    Below the Marcellus in descending order are the Onondaga Fm (Limestone),  Bois Blanc Fm, Oriskany (Sandstone), and finally the Helderberg Gp (mostly Limestone and Chert) which is the base of the Devonian.

    In that Bois Blanc is another Black Shale (Needmore) along with Chert and SS. Seems no one is even talking about that one (yet). What's interesting is RRC is drilling "pilot" holes ~250 feet below Marcellus on their pads. Now I was told it had to do with the "Conservation Law" but I suspect it's for more than that.

Permalink Reply by Philip Thackray on November 8, 2013 at 12:06pm

Tim,

What's interesting is RRC is drilling "pilot" holes ~250 feet below Marcellus on their pads.

They may be taking a peek at the oriskany with a mind to possible future horizontal drilling.

 

There have been a few horizontal wells into the dry Utica in Butler, Beaver and Lawrence Counties.  If there are viable layers between the Marcellus and the Utica in those areas we should have heard about it.  Rex is quick to do/say anything that boosts their stock value.  Perhaps down in Washington County the geology is different.

Phil

Permalink Reply by Todd on November 8, 2013 at 5:50pm
Phil, Tim,

Has Rex drilled any Utica wells in their Butler operated area? All I hear about with Rex in their Butler area is the UD Burkett and Marcellus. CHK has several wells and permits for the Utica in western Beaver County, along with 8 Rhinestreet permits parallel to the Utica wells about 4000' shallower (same degree of direction and everything!) But, Chessy ain't gonna tell us what they know! :)

Great homework Tim - I like it!

Thanks for the Disney tips Phil! Just gettin settled in.

Cheers,

Todd
Permalink Reply by Philip Thackray on November 9, 2013 at 1:28am

Todd,

Rex Utica wells:

They drilled and completed the Cheesman 1H near Portersville.  It went into production Q1 2012 at 9.2 MMcfe/d.  It is dry.  They have never said any more about subsequent production.

They drilled the Hufnagel 1H last July and said they would complete it in the second half of 2013.  Have heard no more.  They permitted a Utica on the Rutledge pad but never drilled it.

All of the Utica in Southwest PA is dry so It doesn’t make much sense for the “wet” operators to drill to the Utica.  The pipeline infrastructure that comes to a “wet” pad is designed to carry some actual liquids (condensate) and they run to the cryogenic plant.  The Cheesman for example is an independent pad and the gas goes to one of the national methane pipelines not to one of the (now) Mark West plants.

However, if they keep rejecting the ethane (that is, selling it with the methane) the BTU levels will reach an unsalable level and they could use dry gas to adjust the BTU – who knows.

The CHK Rhinestreet permits sure is interesting!

Enjoy your vacation!

Phil

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