ODNR releases 4th QTR Production Reports

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015334grltd9mPermalink Reply by 015334grltd9m on April 27, 2014 at 5:29am

What I am gleaning from all this is what  has been my theory for a long time here on GMS.  Carrol county is the hottest county but is not even in the top of the reports.  Carrol county is controlled by CHK/Total, wet gas is not segregated in detail.  Around 500 carrol county wells are not hooked up, cryo plants are just now being streamlined.  Most of the touted top wells are smaller stock companies who benefit by rallying their production.

BP up north is producing albeit in a confidential manner.  We know wet gas pipelines do not exist and BP's activity with Halcon are in their infancy.  As Blu discloses, production reporting is controlled.  I further that the entire Utica right now will be controlled as far as production, for the only reason of keeping the value of minerals down that will be required in the future once production, including exporting is at it's full capacity. 

Permalink Reply by elliemae82 on April 27, 2014 at 6:08am

Hey Ron, If I remember correctly you said in one of your old post someone told you to invest in Ashtabula Co. Property. Do you still agree that there will be some value in the near future? Or do you think it will be more than 5 years? You seem to have some inside information, like to hear your opinion. Thanks and keep up the good post!

015334grltd9mPermalink Reply by 015334grltd9m on April 27, 2014 at 6:42am

Yes, a Project Geologist from Poland, Ohio, who is with a major driller in the Permian basin.  He is the son of a very good old friend of mine.  He says the oil window will be tapped when the low hanging fruit is picked.  Watch what you buy the minerals for ...as long as you know you will wait.

Permalink Reply by Philip Thackray on April 27, 2014 at 6:22am

Wet production does not need a cryogenic plant unless ethane is being recovered.  Propane and Butane can be removed at the well head using special equipment.  Full recovery of the condensate at the well pad is readily done.  These liquids can be hauled away by truck and the residual methane and ethane blown into natural gas transmission lines.  Wet wells must be operated into low pressure lines or else you risk leaving the wet components behind.  An XTO presenter used the term "you have to suck the wells".  Here in Forward Township, Butler County PA XTO wells, the gathering line pressure is about 150 psi.

With all of the above in place, you can operate a wet well with no cryogenic plant.

I have never seen this done back here in the wet Marcellus but this is clearly being done in the wet Utica because the infrastructure does not exist and the enormous output of the good wet Utica wells justify the equipment at the well pad.

Phil

015334grltd9mPermalink Reply by 015334grltd9m on April 27, 2014 at 6:46am

Question is, is it cost effective?  Most likely not, that is why they build cryo's.

Permalink Reply by Philip Thackray on April 27, 2014 at 7:09am

Ron,

It is being done in Carroll County.

Phil

015334grltd9mPermalink Reply by 015334grltd9m on April 27, 2014 at 7:40am

Wow! Okay, so why are they not using the cryo's or again why do they need cryo's then?  I'm sure these are wells not hooked up yet?

Permalink Reply by Philip Thackray on April 28, 2014 at 7:58am

Utica Shale,

Lots of ethane over here (Forward Township, Butler County, PA) as well.  About 3 gallons per well head Mcf.  XTO has their own cryogenic plant with ethane recovery (Hicks Road Plant) and Rex lines all go to Markwest cryogenic plants with ethane recovery but I know that XTO is currently rejecting all ethane and the most recent check stub "report" I have seen for a Rex well pad indicates full rejection of ethane as well.

I follow RBNenergy.com rather closely and article after article describes a surplus of ethane into the distant future.  The cracker plants won't begin to use all the ethane and they are years away.

Regards,

Phil

Permalink Reply by Bluflame on April 28, 2014 at 8:04am

Agreed Philip. Several more crackers could be built, and they still would not absorb all of the ethane. I did read that the recent spike in NG prices will incentivize drilling in the Utica dry gas zone. A fringe benefit is that ethane can be blended with NG from the dry gas wells, and still remain below pipeline BTU limitations.

 

BluFlame

Permalink Reply by Philip Thackray on April 27, 2014 at 8:11am

Ron,

The well  pad equipment can only remove the propane, butane and condensate not the ethane.  If fact there are full blown cryogenic plants that cannot remove the ethane.

I suppose that a centralized cryogenic plant is more economical and necessary if ethane is to be recovered.

I suspect that many well pads in Carroll County and South are using this setup.  All you need is a connection to a normal natural gas pipeline.

The Carroll County well pad of which I speak is in production.

The well pad owner of the Carroll County location that I'm talking about is a frequent poster here.  I'm not going to link a member with a well pad but if he comes along perhaps he will add to this.

Phil

Permalink Reply by Bluflame on April 27, 2014 at 1:24pm

Philip,

  MW's Cadiz, Ohio cryo plant includes a de-ethanizer. An MW fractionator is located a few miles east of Cadiz. Also under construction is a condensate splitter. Everything except the splitter is in operation. MW in constructing a third cryo "train" at Cadiz. This plant mostly processes hydrocarbons arriving via trunk pipeline from SW of Cadiz.

BluFlame

015334grltd9mPermalink Reply by 015334grltd9m on April 27, 2014 at 1:31pm

Now I'm more confused.

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