Replies to This Discussion

Permalink Reply by Don C on December 14, 2013 at 8:40am

Todd

That's an interesting presentation.  Thanks

 

Permalink Reply by Philip Thackray on December 14, 2013 at 11:57am

Greeting from Southern Butler County, PA.  Hi Todd!

Does the most recent GIP maps from Range for the Upper Devonian GIP (Nov 18, 2013 page 12) include the Rhinestreet or is it just the Burkett?  Rex and Range have been drilling the Burkett here in Butler and Washington counties (PA) and reffering to the drilling as Burkett or Upper Devonian.  However, someone posted that Range drilled a Rhinestreet in Washington County (PA) but Range has never talked about it.

The new Range GIP maps differ quite a bit from anything I have seen before.  But then again most of what is out there is thickness, API, depth type stuff not a comprehensive GIP map.  The recent GIP maps even differ from the Van Meter presentation here .  I don't know what to believe.

Phil

Permalink Reply by Todd on December 14, 2013 at 3:46pm

Hi Phil!

Thanks for posting the Van Meter presentation - this discussion would not be complete without it!

Interestingly, the Burket Shale only appears to be about 30' thick in SW Butler County and it is being drilled up by Rex.  What are you finding the thickness of the Burket to be in Butler County?

Then, look at Lawrence County and NW Butler County - there are several UD wells being drilled according to the RRC presentation, Page 31.  But the GIP map on Page 12 shows 0 to 40 Bcf/sq mi.  Well, #1, that is a huge spread... nothing or 40 Bcf/sq mile! 

Then look at the Van Meter presentation - Page 21

Total Upper Devonian Shale Net Thickness greater than 160 API:  The thickest area with 160 gamma-ray API radiation is Allegheny County at 180' and Lawrence County is only 15' at this level of radiation.

Then look at Page 22

Total Upper Devonian Shale Net Thickness greater than 200 API:

Again the thickest area with 200 gamma-ray API radiation is Allegheny County at 70'.  However, most of Lawrence County has 50' of thickness at 200 API.

So, even though Lawrence County has a maximum of 40 Bcf/sq mile, it is likely that most of that gas is located within 50' of shale which could attract the rigs.

Hence, in looking at the RRC UD GIP map on Page 12, Allegheny County has the most GIP at 100-130 Bcf/sq mile which I would expect based on the gamma-ray testing.  However, that same GIP of 100-130 Bcf/sq mile is also shown for Greene County, PA and that completely contradicts the Van Meter presentation.  Perhaps, the Van Meter presentation is already outdated from 1 year ago on 10/17/2012!

Oh well, I tried to make some sense of it!

Todd

Permalink Reply by Philip Thackray on December 15, 2013 at 2:38am

Todd,

It is impossible to draw firm conclusions from the data available to us.

Observations / speculations (mostly Butler County):

Relative to Range presentation page 31.  All southern Butler County, PA UDs are Rex Burketts as is the UD shown in SE Lancaster county.  All of those wells are now on line and are described in the recent Rex presentation.

The Northern Butler County UD is the SWEPI Drake in Worth township and I do not know what strata that was heading for.  As you know, SWEPI has been busy plugging some/many/all? of those wells.

The completed Range UDs are Burkett.  The others being drilled in Washington and Green counties are probably Range and EQT to what strata??

Perhaps everything else to west of the above are Rhinestreets?

The Range UDs are very good (according to them)

The most recent Rex UDs are good (according to them).

The two southern most Rex UDs (Drushel 6HD and Stebbins H) are the best consistent with the Range GIP presentation. 

Also consistent with the Range GIP presentation for the Marcellus, the Rex Lynn (eastern most) is their best Marcellus yet.

The Rex Baillie Trust is on line (stacked Marcellus and Burkett) there was a press release but limited information.   Info in next Rex presentation (if positive!!).

From Van Meter page 18 it looks like the Range GIP for the UD has Rhinestreet figured in???

With no limestone between the Burkett and the Rhinestreet, fracking the Burkett may include some of the Rhinestreet?

Just more questions…….

Phil

Permalink Reply by Todd on December 15, 2013 at 9:28am

Hey Phil,

Thanks.  Yes, I agree - no firm conclusions are possible with the little generic data available to us.  The GIP map is probably the most important map we have thus far.

I know Chesapeake currently has 8 Rhinestreet permits in extreme western Beaver County and Chesapeake has completed one Rhinestreet well in Hancock County, WV.  I would like to know whether or not CHK has drilled and completed any of these Rhinestreet wells in Beaver County.  In addition, RRC has drilled a Rhinestreet well in Independence TWP, Beaver County at the Noss Pad.

Yes, I believe that the RRC UD GIP map includes all of the gas in the Upper Devonian Shale, including the Rhinestreet Shale.

According to Van Meter, Page 4, there are 3 shale layers (one organic and two inorganic) separating the bottom of the Rhinestreet Shale and the Burket Shale. 

I don't know what kind of operator Penn Energy is but they have 3 horizontal UD wells - two in Zelienople and one in Rochester.  I'm not certain to which shale within the UD they are approved to be drilled, but they were just approved in July 2013.

Beaver%20County%20Permits%20and%20Map.xlsx

Interestingly, all of the Chesapeake permits in Beaver County that end in "M" are actually approved to drill the Rhinestreet Shale directly above and parallel to their Utica laterals.

FYI: a very good oil and gas attorney told me over a year ago that there is enough shale to drill and produce for the next 100 years and that is the operators' plan.  I certainly hope he's right!

Permalink Reply by Philip Thackray on December 15, 2013 at 9:59am

Penn Energy- http://www.pennenergyresources.com/  Local guys, subcontract everything.  But so does everybody else.

I see the Van Meter page 4 but many shales fracture easily.  A frack in the Bukett would be blocked by the Tully but could extend upward to the Rhinestreet.

I've long thought that they will be drilling here for at least 50 years.  I hope your attorney friend is more correct!!

Phil

Permalink Reply by Todd on December 15, 2013 at 10:49am

Here's a plug for them from their webpage:

"Penn Energy Resources current operations are focused in Southwest Pennsylvania in the counties of Armstrong, Butler and Beaver.  Since initiating our leasing efforts in 2011, we have built a consolidated shale acreage position of over 70,000 acres in our focus area.  Our acreage is prospective for both “wet” and “dry” natural gas in the Marcellus Shale, the Utica Shale and the Upper Devonian Shales.   A continuous drilling program was initiated in June, 2013 with first production anticipated by January, 2014. We expect to have 21 wells drilled, completed and on production by year-end 2014 with a net production rate of approximately 50 million cubic feet per day."

Good point, shale does crack/fracture easily... but what about when it's under the pressure of 4000 to 5000' of rock?  I wonder how far vertically the fractures would extend upon hydraulic fracturing the middle of a say 500' section of shale?

FYI, Cabot has now successfully fractured the lower and upper Marcellus Shale with a thickness of approximately 150' in NE PA, Susquehanna County:

 http://seekingalpha.com/article/1886651-cabot-oil-and-gas-marcellus...

Permalink Reply by Philip Thackray on December 15, 2013 at 11:09am

 

Todd,

I'm no completion geologist but I do know that one of the things Rex is testing for at the Baillie Trust stacked Marcellus / Burkett was to determine if there would be any communication between the stacked formations and note that the Tully limestone lies between them.

Also, Range has speculated that stacked Marcellus / Burkett might enhance the production from both of the layers; again implying possible vertical communication.

Phil

Permalink Reply by Todd on December 15, 2013 at 11:12am

I agree that there is communication between the layers that touch each other.  However, the communication has a limitation in terms of feet away from the catalyst. 

Permalink Reply by Todd on December 16, 2013 at 10:33am

From Rex Presentation, Page 18

Baillie Trust Stacked Laterals

http://files.shareholder.com/downloads/REXX/2779185640x0x710852/007...

　Testing both Marcellus and Upper Devonian through use of stacked laterals

• Utilizing microseismic testing to demonstrate expected lack of communication between formations

Exciting stuff going on at Baillee Trust!

Permalink Reply by Todd on December 17, 2013 at 7:03am

A lot to ponder here.

Initial findings:

The Rhinestreet is being drilled at varying depths by CHK.  Also, there are an awful lot of pads directly across the river from the proposed Shell cracker plant!

Some diagonal Burkett laterals have been drilled by Penn Energy to follow difference in elevation of the shale (folding?). 

Of note: Jenkins 3H M Landing Point TVD 4387' and TD TVD 4505' yields a 118' thick diagonal lateral with a length of 6724'

Attachments:

• Well Plats UD Beaver_Butler_2013-12-17.pdf, 3.6 MB

Permalink Reply by Todd on December 17, 2013 at 7:30am

Baillie Trust Burkett 6H thickness is only 18'

Top of Burkett at 5229' and top of Tully Limestone at 5247'

TVD of Baillie Trust Burkett 6H 5231'

Western Beaver County Marcellus thickness is about 25 to 30' thick

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