Comment

Comment by sldouglass on January 23, 2013 at 7:31am

As to bowl shape, I suppose that is in the eyes of the beholder:  Half a bowl might be closer to the truth and I cannot argue that the strata "go deeper" as they go SW.  Possibly, if you follow the pattern over to NY the strata rise as they go E.

Comment by sldouglass on January 23, 2013 at 7:22am

Your second sentence is what I have been trying to say.  According to to MarcellusOrg.com about 40% of sites only have only one well on them and then there are a bunch with 2 and so on until there is 1 site with 20 wells.  I am suggesting the the marginal drilling is to hold leases in units beyond the primary term so producers can meet needs for 100 or many more years in the future.  Landowners should not have expectations of an immediate bonanza and possibly should consider options to assure some income during the long term of the lease if the lease is to continue indefinitely.

Comment by Jim Litwinowicz on January 22, 2013 at 4:30pm

Sam; the strata aren't bowl shaped but go deeper as one goes east and south. As you go north they rise to the surface and the Marcellus is exposed in Marcellus NY....thats how it got its name.  The Utica in Ohio is shallower then the Marcellus of SW Pa...thats why it has oil. Less depth = less temp and less pressure.

Every one knows that this play will take decades to fulfill. No one expects all the wells to be drilled in five years. And we know companies will drill a couple or three wells on a pad and move, waiting years or even decades before coming back to drill more.

Comment by Berk on January 22, 2013 at 2:17pm

Tonight is the premier of Fracknation 9pm...

Follow the link to see which channel carries it.

http://fracknation.com/

362 if you have dish

Comment by sldouglass on January 22, 2013 at 5:25am

Your comment about depth is helpful.  The strata are bowl shaped and closer to the surface at the edges.  I suspect the Utica wells in Ohio are drilled do depths not much different from the Marcellus in SW PA but I am not equiped to fully analize that.  No doubt there are other factors that apply in different areas in addition to depth pressure.  And to some extent the longer drilling may be experimental - "Let's see what happens if we drill a few wells further."

At any rate, my point is that the industry can not possibly fully develop over 100 years worth of drilling overnight.  There is a significant amount of drilling done near the end of the primary term to take a large unit into the secondary term which will go on indefinitely.  The producers need reserves for the future - a long long future.  They are not going to drill out every parcel overnight.

Hence I have proposed an annual advance minimum royalty a payment after an arbitrary period of say 7 years.  If there are productive wells on the unit the producer will never pay my proposed advance minimum royalty.

Comment by Jim Litwinowicz on January 22, 2013 at 3:13am

Sam; one of the main determining factors in the length of the horizontal leg is the depth at which the well is drilled.  From talking to people in the industry, they tell me that the drilling rigs have a limit on the total length of the drill string as they can handle only so much weight and torque. The deeper they have to go to get to the strata, the less capacity they have to drill horizontally. Thus when you look for various horizontal lengths you will find that they are shorter in areas where the shale is deepest.  In eastern Pa and sw Pa the Marcellus Shale is quite deep and the horizontals are shorter. Look in Ohio and you will see much longer laterals since the shale is shallower the there.  Even in w Pa like Lawrence and Butler Co the shale is shallower and the laterals are longer....at least from what I have been seeing.

I am told they have bigger rigs along the Gulf Coast capable of drilling very long laterals even at the deeper depths. Maybe we will see some of these super rigs in the future if it is financially useful to drill longer laterals once the price of nat gas rebounds.

Maybe someone with more industry experience and knowledge like Jack Straw or Brian can jump in and referee this debate between us. I'd like to know for sure just how long the laterals are, the spacing between them, and how they are determined. In any event, its been an interesting discussion.

Comment by sldouglass on January 21, 2013 at 5:01pm

continuation 2
01/20/2012
Rex Energy Updates Marcellus Shale Well Costs And EUR's
Rex Energy (REXX) issued updated information on the company’s cost to drill and complete wells into the Marcellus Shale in 2011. The company also increased the estimated ultimate recovery (EUR) on Marcellus Shale wells.
Butler County Operated
Rex Energy said that wells in this area cost $5.3 million to drill and complete, up from $4.7 million in 2010. These wells are also more productive and have a EUR of 5.3 Bcfe in 2011, up from 4.4 Bcfe in 2010.
Westmoreland County – Non Operated
Rex Energy said that wells in this area cost $5.8 million to drill and complete, up from $4.7 million in 2010. These wells are also more productive and have a EUR of 4.2 Bcfe in 2011, up from 3 Bcfe in 2010.
Centre and Clearfield Counties – Non Operated
Rex Energy said that wells in this area cost $5.8 million to drill and complete, up from $4.7 million in 2010. These wells are also more productive and have a EUR of 4.1 Bcfe in 2011, up from 3 Bcfe in 2010.
The well costs and EUR’s are based on 3,500 foot laterals and a twelve stage hydraulic fracturing operation.
You might also like:

Chesapeake Energy - Haynesville Shale Decline Curve - GMX Resources Thrown Out By The Market

Comstock Resources Comments On Haynesville Shale Operations

LinkWithin
Posted on 01/20/2012 at 05:38 AM in Butler County, Centre County, Clearfield County, Company News,Estimated Ultimate Recovery, EUR, Frac Stages, Horizontal Wells, Hydraulic Fracturing, Lateral Length,Pennsylvania, Rex Energy, Well Cost, Westmoreland County | Permalink | Comments (0) | TrackBack (0)
Technorati Tags: condensate, crude oil, energy, exploration and production, extraction, fractionation,horizontal drilling, hydraulic fracturing, Marcellus Shale, natural gas, natural gas liquids, oil,Pennsylvania Oil and Gas, petroleum, pipelines , Rex Energy, shale gas, tight gas

Comment by sldouglass on January 21, 2013 at 4:59pm

continuation -
Lateral Length
07/13/2012
CONSOL Energy Reports Marcellus Shale Gusher
CONSOL Energy (CNX) reported the results of a Marcellus Shale well that produced 17.9 million cubic feet of natural gas during a peak 24 hour period. This was the highest production rate reported on any well in the history of the company.
CONSOL Energy drilled 17 Marcellus Shale wells during the second quarter of 2012 and put an additional 18 onto production.
CONSOL Energy has also increased the average lateral length on Marcellus Shale wells and reported an average lateral length of 4,600 feet during the first two quarters of 2012, compared to 3,300 feet in 2011. The company has also reduced average costs per frac stage and spent $181,000 per stage in 2012 to date compared to $205,000 per stage in 2011.
LinkWithin
Posted on 07/13/2012 at 10:51 AM in CNX Gas, Company News, CONSOL Energy , Lateral Length, Q2 - 2012, Well Cost, Well Results, Westmoreland County | Permalink | Comments (0) | TrackBack (0)
Technorati Tags: condensate, CONSOL Energy, crude oil, energy, energy stocks, exploration and production, extraction, fractionation, horizontal drilling, hydraulic fracturing, Marcellus Shale, natural gas, natural gas liquids, oil, oil and gas investing, oil and natural gas stocks, petroleum, pipelines, shale gas, shale plays , tight gas
02/23/2012
Range Resources Designates Portion Of Marcellus Shale As "Super Rich"
Range Resources (RRC) has anointed a portion of the company’s Marcellus Shale properties in southwestern Pennsylvania as “super rich” due to the high BTU content of the production stream. The companyestimates that the natural gas stream of wells in this area will have a minimum 1350 Btu.
Range Resources has 570,000 net acres located in southwestern Pennsylvania and estimates that 125,000 net acres are in this “super rich” portion of the Marcellus Shale. One recent well completed in this area had an initial 24 hour production test rate of 6.4 million cubic feet of natural gas and 1,266 barrels of liquids per day.
Range Resources has drilled and completed eight wells into this area and has released an estimated ultimate recovery (EUR) of 305,000 barrels of natural gas liquids, 95,000 barrels of condensate and 3.9 Bcf of natural gas per well.
Range Resources estimates that once in development mode, the cost to drill and complete a “super rich” well will average $4.7 million. The typical well will have a lateral length of 3,742 feet and fourteen hydraulic fracturing stages. The well is estimated to generate an internalrate of return of 95% using the current strip and a net present value of $10.7 million per well.
You might also like:

Chesapeake Energy - Haynesville Shale Decline Curve

GMX Resources Thrown Out By The Market

EnCana Corporation - Haynesville Shale Conference Call ...

LinkWithin
Posted on 02/23/2012 at 12:32 PM in 24 Hour Production Rate, Acreage, Btu Content, Company News,Condensate, Estimated Ultimate Recovery, EUR, Frac Stages, Hydraulic Fracturing, Initial Production,Internal Rate of Return, IRR, Lateral Length, Liquids, Natural Gas, Net Acres, Net Present Value, NPV,Operational Update, Pennsylvania, Q1 - 2012, Range Resources, Super Rich | Permalink | Comments (0)| TrackBack (0)
Technorati Tags: condensate, crude oil, energy, energy stocks, exploration and production,extraction, fractionation, horizontal drilling, hydraulic fracturing, Marcellus Shale, natural gas, natural gas liquids, oil, oil and gas investing, oil and natural gas stocks, Pennsylvania Oil and Gas, petroleum,pipelines, Range Resources, shale gas, shale plays, tight gas

Comment by sldouglass on January 21, 2013 at 4:58pm

I tried to do some searching to find something close to being reliable on length of horizontal Marcellus wells. Apparently it depends on particular circumstances and drilling longer wells is not necessarily a good idea. And it does appear that some wells are getting longer, but I have had difficulty finding consistent wells of 5000 feet or more. Maybe it just is not on the net. What I found is shown below if it makes it into the comment wall. I will try to split it.
Marcellus Coalition says: “the drill bit can then turn to push its way horizontally into the Marcellus Shale, sometimes as much as 5,000 feet, into the formation. “ http://marcelluscoalition.org/marcellus-shale/production-processes/...

Comment by Oliver Perry on January 21, 2013 at 2:02pm

I don't know if the google view is before or after, but it certainly is an impressive looking site. From the pad to the retention pond, very clean and professional looking.

• ‹ Previous
• 1
• …
• 73
• 74
• 75
• 76
• 77
• …
• 151
• Next ›
• Page