Clark well putting out lots of OIL....Big tankers going out all day long...!

I don't know about the Gas.. but HUGE TANKERS full of OIl going out Cubbison Rd ALL DAY LONG...!!

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Permalink Reply by Mike Fulper on October 17, 2013 at 11:08am

Ok, thanks, Mike

Permalink Reply by Mike Fulper on October 17, 2013 at 4:20am

Sorry.. dumb me.. ha.. cannot even "click" on things right...:)

I will wait till the 2nd Kamm platt shows up.

THANKS  a bunch for all the help...

 

thanks,, Mike

Permalink Reply by bo boboski on October 17, 2013 at 9:04am

$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$$,but tell the neighbors!

Permalink Reply by James Vanderink on October 24, 2013 at 10:56am
Mike, the results today don't look too good.


Utica Well Results

The Company completed three Utica wells in the oil window in the third quarter 2013 — with 30-day initial production rates of 286, 268, and 241 bbls/d of oil, respectively. If processing were available, the wells would have produced 41, 58, and 42 bbls/d of NGLs, plus, approximately 755, 1,082, and 771 MMcf/d of natural gas, respectively. Regional pricing was realized for the natural gas; while the realized oil price was approximately $101 per bbl. The Company is on track to spud eight Utica wells in 2013.
Permalink Reply by Tony Yurina on October 25, 2013 at 3:38am

James,

I disagree with your assessment that "the results today don't look too good."

Get your calculator out and do the math.   EQT's third quarter financials indicated they received $101 per bbl for oil.  

Six  months of sustained production at these levels pays off half the well investment costs including the $2 million dollars each spent on core sampling, special scientific tests, etc.  EQT stated that each of the first three wells had extensive scientific data collected that added  two million dollars to the cost of each well, the cost was $8.5 M each.  Future wells are projected to cost $6.5 M each and economics look even better.

Sources indicate the 30 day IP rates were choked to some extent.  

Permalink Reply by James Vanderink on October 25, 2013 at 5:24am
Tony, thanks for reading deeper than I did. Maybe you or someone else can answer this for me. What are they going to do with the NGL's? In their statement:
" When processing becomes available around year end, we'll receive premium pricing by stripping and selling the natural gas liquids."

Isn't all the NGL infrastructure way east of here?
Thanks Again
Permalink Reply by Tony Yurina on October 25, 2013 at 12:59pm

To answer your question:  There are only a few weeks left in the year, and natural gas facility construction is a slow progress when you are working in rain, mud and cold weather.  (Speaking form experience, it is not very much fun)

IMO by years end, about all they could mobilize would be a JT skid to yank out some of the NGL's, somewhere in their short system. 

There needs to be a few more pieces filled in this part of the puzzle before anyone can make an educated guess.

Permalink Reply by James Vanderink on October 29, 2013 at 2:27am
Tony, is this what you mean by a JT skid?
This is from PDC:

"Moving into Utica, this is a new area for us. We're currently involved in discussions to finalize our long-term gathering, processing and fractionation options. We've recently implemented a short-term solution for our wells up in Guernsey County. And you can see on the map the Northern acreage there where we've drilled our 2 wells, the Onega and the Detweiler. The Detweiler is where we put our processing skid or refrigeration skid. We're currently processing gas off the Detweiler and selling NGLs and selling gas into the gather co -- gathering system, and we're selling to Dominion at that point."
Permalink Reply by Tony Yurina on October 30, 2013 at 4:54am

A JT skid is a type refrigeration unit that cools the gas component ie. C3 Propane, C4 Butane, etc. below the boiling point such that it is condensed into a liquid form and separated from the residue gas stream. 

Permalink Reply by Kangoo on October 29, 2013 at 10:24am

Tony,

As much I'd like EQT to be successful, these wells currently don't look economic right now.

The little gas that they produced with the oil (on average around or less than 1MMCF/d) doesn't look good. The low energy (low reservoir pressure in the western part of the Utica combined with the low gas to oil ratio reported in their press release) puts these wells at a big risk of a very steep decline. It will be interesting to see what their IP90 is, but I'd expect them to be around half the IP30 rate, maybe at bit more.

Therefore these wells won't flow for 6 months even at close the rate they flowed the first 30 days.

Also you are using $101/bbl when you are doing econmics. I'd use 65$ to $70 dollars at best for what they'll actually keep per bbl produced. You need to include operating costs, royalties, taxes, etc.... The 101 dollar mentioned in their Q3 statement is just what they received when selling the oil, not including any costs.

Hopefully they'll find ways to improve productivity on future wells, but as of now things don't look too great.   

Permalink Reply by Tony Yurina on October 30, 2013 at 5:00am

Sources indicate tubing and a hydraulic linear rod pump are being used at least on one of the wells.

Using the LRP, How much longer do you estimate the IP 30 to hold until the decline curve becomes substantial?

EQT is within two miles of the KM pipeline and compressor station 209.  I would not be surprised to learn there may be a potential future liquids outlet just waiting to be exploited.

Permalink Reply by Kangoo on October 31, 2013 at 12:01pm

That's really hard to say without the operating parameters, but in general having a rod pump installed very early (within a few weeks) is a sign that flowing pressure dropped rapidly after bringing the well on..... Currently it's all speculations, we'll know a lot more when (in case they decide to do so) they release 90 day production data.

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