Replies to This Discussion

Permalink Reply by Philip Thackray on April 2, 2014 at 1:45am

Todd,

Hi!

The vertical drilling drawings I have seen from Rex show the Burket as about 25' thick.  I just looked at the Stebbins drawing, a well pad on the border of Forward and Penn Townships, Butler County, PA.  So what is "100 feet" - I don't know.  Certainly, Rex has proven the Burket in the Southern Butler County, PA and SouthEast Lancaster County, PA areas.  Now I'm seeing a parade of XTO permits to the Burket in the Southern Butler County, PA area as well.

In this recent Rex report they are now calling the Rhinestreet "Reservoir #4" the same thing that Consol did in the Corporate report that you posted over in the Beaver County, PA discussion.

What all is real and what all is for the stock brokers - I don't know.

I'm glad to see that Rex backed down on their estimates of ethane sales.  The future ethane requirements are greatly exceeded by the future (possible if not rejected) ethane supply.  See RBNEnergy.com

 

Marcellus/Hamilton?  When Rex reported their results for the Baillie Trust pad (stacked Burket over Marcellus) they mentioned some "interaction".  I don't know what that means but it certainly implies that the Marcellus frac when up through the Hamilton and Tully and/or the Burket frack went down through the Tully limestone into the Marcellus/Hamilton.  At any rate, at Rex's Ferree pad they decided to interdigitate the Burket and Marcellus laterals - not stack them.  I note that the Consol layout at the airport is interdigitated as well.

Phil

Permalink Reply by Chris Crawley on April 2, 2014 at 6:59am

Phil,

I'm wondering how this "interaction" between the wells will impact royalties?

Permalink Reply by Philip Thackray on April 2, 2014 at 7:15am

Chris,

As long as the same unit contained both classes of wells then I don't see this affecting the royalties.  If the Marcellus and Burket wells are in different units that would be complicated.  From what I have seen so far with Rex and XTO here in Southern Butler County, PA the Burket wells have been added without modifying the surface unit.

Both Rex and Range have implied that adding Burket wells above existing Marcellus wells may improve the total production but I have no details about that.

Phil

Permalink Reply by Chris Crawley on April 2, 2014 at 8:53am

It would seem that the co-mingled wells would have to be in the same production unit because you couldn't quantify the individual wells?

Permalink Reply by Todd on April 2, 2014 at 5:51am

Hi Phil!
Wow - Thanks! Great research.
Do you know how Rex interdigitated the Burket and Marcellus laterals at the Ferree pad and where I would go to view this?
Todd

Permalink Reply by Philip Thackray on April 2, 2014 at 6:55am

See here:

Attachments:

• Rex Ferree.pdf, 427 KB

Permalink Reply by Philip Thackray on April 2, 2014 at 6:59am

Todd

This pdf represents the lateral spacings not the actual starts and stops.  These lines were created from the Latitude and longitude information on the well plats and are quite accurate with regard to lateral spacings.

Phil

Permalink Reply by Jon on April 2, 2014 at 9:56am

How many acres is the unit?

Permalink Reply by Philip Thackray on April 2, 2014 at 10:30am

Jon,

No unit(s) have been declared - which is typical at this stage.  On each well plat outlines are drawn and acreage indicated but the outlines and acreage from this stage rarely relates to the finished unit.  In keeping with the recent high density well pad concept, at least two units will eventually be declared with all wells leaving the Ferree pad.  The recently declared Shipley South unit does not even include the well pad.

Also of interest, the Shipley South unit is Marcellus only.

Phil

Permalink Reply by Jon on April 2, 2014 at 10:37am

Ok. Just curious. Units seem to be a wide range of sizes, so I was thinking 3 wells in a small unit would be pretty good money. It doesn't sound like that's the case though.

Permalink Reply by Philip Thackray on April 2, 2014 at 10:44am

Jon,

I have not shown all the wells that are being drilled from the Ferree pad.  Six total at this time with more to follow.  My map was created to determine the representative spacing for the interdigitated Burket and Marcellus laterals, something which is not indicated on individual well plats.

Phil

Permalink Reply by Jon on April 2, 2014 at 10:52am

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