looks like an entire revisit of the Flat Castle plan in NC Tioga co. Pa. the long lateral plan is too much for a new conservative management team and a company that has lost so many key employees that showed cutting edge technical skills under Ben Hulberts leadership. we all owe the old Eclipse a nod for bringing the whole e&p industry an incremental step forward. Montage is already setting up to be just another follower. sad day for technical risk taking and very cool engineering challenges.

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Seems like the Tioga Utica play is struggling to compete 

look at Shell and Eclipse Painter 2H as well as i'm hearing rumors of Seneca's 007 soon to report.JKLM  Potter co. not so much. the Flat Castle issue is Dominion's storage field and how to drill with shorter laterals under a Montage plan. both Shell and JKLM have been surrendering leases in areas which would create space for Montage pads on the south side.i suspect everything west of Shell's Sharret pad to go to Montage allowing lateral toes to meet rather than long laterals all the way through. both Shell and JKLM are continuing new leasing up against the surrenders. also Eclipse paid us 20% of the secondary term 18mos. in advance of the lease due date under modification. that amounts to 6 yrs. worth of total due, paid in the past  3.5yrs. Montage may put the Flat Castle up for sale, but i don't believe any company is concerned about the Utica productivity in specific areas here. they are to issue more info 3/20, as well as we may know what Seneca gets off DCNR 007. either way the checks are paid.

I'd really like to know more about this, but I keep getting notes to download a form. Where is this Flat Castle plan? I am in Charleston Twp and am unaware. 


googled it and found you. Good luck with it. 

Related to the engineering feats that Eclipse tried to be a leader in - we are seeing the market pressure to generate cash flow over achieving engineering miracles. The days of pushing to 3 mile laterals are behind us in Appalachia. Tons of challenges lead to higher costs on those longer laterals and for a company like Eclipse, they needed an influx of revenue to stay afloat.

you are right on. some of us like to play with big toys without looking over our shoulders at Wall St. ECR did some really cool stuff until they ran out of money. Encap runs this show and MR is already down 9% today. if Rinehart can't get Encap out with profit in two years he'll get the boot as well. rode ECR short right through the merger, even though i'm leased to and wish MR all the luck, it's all about the money.

check out SWN statements regarding longer laterals. they went 18000' in WV and will continue increasing averages going forward for the positive financial results of longer laterals.

Since MR stating that new pads at four well max and Lateral averaging 11,700 ft, how does everyone think it will affect already permitted wells over 15k ft.?  i.e. the Rolland wells in Monroe County.  

good question. we have a couple 14000' permitted up here in Pa. maybe over time they'll listen to Tolmachev's reasoning.

Montage's lateral length decision may be prudent for the time being when all things are considered. Rinehart brought BRMR to where it is by selling Magnum Hunter assets. BRMR never had a deep technical bench and wasn't a high producer. Eclipse has lost alot of the team during the merger turmoil. they have been recruited away like many from the Rice side of EQT to startups like Encino. Encino is sucking in talent like a Hoover vacuum. i follow alot on linkedin to see team lineups. Oleg Tolmachev is Montage key player with a couple core guys that hang with. if he is not challenged by a Montage plan that evolves in time into an optimized and technically advancing program, he could be recruited away and Montage will become stagnant. i've been through mergers and sometimes they take years to mesh and some may not, ie. EQT/Rice.

OT - have you read recent news articles saying that investors are telling gas companies to increase shareholder value and not focus entirely on growth and future earnings?   Also, to change key employee bonus money to reflect more on increasing stock value as oppose to increasing reserves or technology achievements like long laterals.   Is my impression of these articles accurate?  This message has caused many gas companies to slash their 2019 budgets.  

free cash flow is what investors are interested in and reward. average lateral lengths continue to increase across the industry because they increase a well's rate of return. it's a balance between really long riskier laterals and incremental increases. Eclipse was the pioneer, but they will all go there for the financial reasons you describe. watch SWN reach out with their owned drill rigs which keeps a growing skill set within their crews. 16000'+ isn't for third string contractors. 


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