Marcellus Shale - Marcellus Shale Maps - New York, Pennsylvania, Ohio, West Virginia Natural Gas

Oil - Natural Gas News
Classified Ads - Oil & Gas
Directory
North America Shale - Index
Antrim Shale
Austin Chalk Formation
Avalon Shale
Bakken Shale Oil Field
Barnett Shale Natural Gas Field
Bossier Shale - Natural Gas Field
Cardium Shale Formation
Chainman Shale Discovery
Chattanooga Shale
Collingwood Shale
Cumnock Shale Formation
Duvernay Shale
Eagle Ford Shale Discovery
Exshaw Shale Formation
Fayetteville Shale Natural Gas Field
Granite Wash - Texas
Haynesville Shale - Natural Gas Field Map
Haynesville Shale Stocks
Horn River Basin Shale - Natural Gas Field
Huron Shale - Lower Huron Shale
Kern Oil Field - California
Marcellus Shale - Natural Gas Field
Monterey Shale
Montney Shale Formation - British Columbia Natural Gas Field
Niobrara Shale Oil Discovery
Permian Basin Oil Field - Texas
Piceance Basin
Smackover Brown Dense Formation
Tuscaloosa Marine Shale
Utica Shale - Oil & Gas Field
Wolfcamp Shale
Woodford Shale - Oil & Gas Field
Shale Jobs
Mineral Rights
China Shale
Alabama Shale Plays
ANWAR Oil Field - Alaska
Brazil Tupi Oil Field - Santos Basin
Beverly Hills - Los Angeles Oil Fields
Canadian Oil Sands
Green River Basin Oil Shale Formation
Offshore Oil Drilling
Contact Us
Oil Shale Gas Site Map

Marcellus Shale Field - Natural Gas Formation Location
Marcellus Shale Formation States: New York, Pennsylvania, Ohio, West Virginia

Marcellus Shale Play is located in the following counties:  PA: Erie, Warren, McKean, Crawford, Mercer, Vanango, Lawrence, Forest, Clarion, Butler, Beaver, Armstrong, Elk, Clearfield, Indiana, Cambria, Somerset, Westmoreland, Fayette, Allegheny, Washington, Greene, Bedford, Potter, Tioga, Bradford, Susquehanna, Wayne, Pike, Lycoming, Sullivan, Wyoming View Map.  Looking for a Job in the Marcellus Shale?  View Here

hit counter html code

What is the Marcellus Shale Formation?
New Classifieds Just Posted - Click Here

History and Facts:  The Marcellus Shale Natural Gas Field Formation, which extends through Pennsylvania, New York, Ohio, and West Virginia, is a part of the Devonian Black Shale Field.  The Marcellus Shale play is hinted to hold a huge amount of natural gas, causing companies to go on a gigantic mineral rights land grab!  This shale rock formation was named after the town of Marcellus, New York due to the outcrop formation in the shale.  The Marcellus shale extends over 575 miles and has a thickness of up to 900 feet.  Also known as the Pennsylvania Shale ( or New York Shale, West Virginia Shale, Ohio Shale )  this geologic natural gas shale was reported to hold more then 1.9 trillion cubic feet back in 2002.  This did not cause much excitement because the amount that could actually be extracted was low.  Combined with the fact that natural gas prices were very low, drilling in the Marcellus Shale was not economical.  One company, Range Resources, showed up to Marcellus Shale back in 2003 in hopes to extract natural gas.  Range drilled a well in Washington County, PA and found that this natural gas well was very promising.  Like many companies now a days, Range Resources used techniques and experience from the Barnett Shale in Texas for the Marcellus Shale natural gas field.  The first well that produced gas in Marcellus Shale for Range was hit in 2005.  Range Resources ( RRC ) now has drilled over 100 natural gas wells on their 900,000 acres in the Marcellus Shale play.  See more about companies drilling at Marcellus Shale below.

A new survey issued by Terry Englander, a geoscience professor at Pennsylvania State University, and Gary Lash, a geology professor at the State University of New York at Fredonia, surprised everyone as these men think the Marcellus Natural Gas Shale Field could hold up to 500 trillion cubic feet of Natural Gas.  50 TFC would be a realistic amount that could be recovered.  All of this is made possible by more advanced technology which includes fracturing & drilling techniques involved with horizontal drilling, thus making the Marcellus Shale Natural Gas Field very valuable!  The price of Natural Gas has risen sharply over the years and these new techniques allow companies to drill better and faster.  A horizontal well in the Pennsylvania, New York, Ohio, and West Virginian Shales back in 1970 might have taken up to 3 months to drill.  Now a rough estimate is 30-45 days.

The United States produces roughly 30 trillion cubic feet ( 30 TFC ) of natural gas every year.  If research reports are correct and the Marcellus Shale holds 50 TFC's of recoverable natural gas, this would put the Appalachian Basin Natural Gas Shale into a different league.  The Marcellus Shale Deposit would be dubbed a natural gas super giant and would be one of the biggest natural gas fields in the United States.  The Haynesville Shale is a similar Natural Gas Shale.

How is Natural Gas extracted from Marcellus Shale?  Energy companies use a new drilling technique called horizontal drilling.  First the drilling company drills vertical, and then drills horizontally.  The problem with Horizontal Drilling is the cost.  A vertical drilled well in the Marcellus Shale Zone costs around $810,000 while a horizontal drilled well at Marcellus will cost you roughly 3-5 Million Dollars.  In the Marcellus Shale, a horizontal well is drilled using multi stage fracturing techniques ( frac jobs ).  Large amounts of water are combined with sand which are blasted at the shale in order to get a fracture.  This contaminated water is then pumped back out and stored.  There have been some environmental issues with regard to the Marcellus Shale.(See Below).

Marcellus Shale in 2013:  During 2012, the Marcellus Shale fell victim to low natural gas prices due to the ramp up in drilling.  The drilling companies below really cut back on the number of active drilling rigs but we are seeing a tick up in natural gas prices as we head into 2013.  I am expecting the Marcellus Shale to really come alive again sometime before 2015.  Natural Gas prices have the opportunity to hit $4-$5 at some point in 2013.  This might spark up more activity as far as land leases and drilling goes. 

There is a huge drilling boom in the Marcellus Shale and the other shale formations below.  Production is increasing as we head into 2013.  When you see natural gas prices move above $5 again, the drilling in the Marcellus Shale formation will really come alive!  Don't forget to check out these other shale plays just as hot as MarcellusHaynesville Shale -  Horn River Shale - Bakken Oil Shale - Fayetteville Shale - Brazil Oil Field - Woodford ShaleBarnett Shale - Chattanooga Shale - Utica Shale


Pennsylvania Warns Gas Companies to respect Natural Treasures at Marcellus Shale:

Pennsylvania has an estimated 2.8 trillion cubic feet of proved natural gas reserves in the ground awaiting development, according to the Pennsylvania Oil and Gas Association.  Developing the Marcellus Shale formation requires large amounts of fresh water to fracture the shale in order to extract the natural gas. Recent inspections by DEP and its partners have uncovered violations that threaten the state's water resources and its environment. Department of Environmental Protection Secretary Kathleen McGinty had this to say: 

"Over the past few weeks, DEP inspectors have observed a number of violations at drilling sites operated by companies that were new to Pennsylvania," said McGinty. "In light of those discoveries, we acted quickly to stop this harmful activity and felt it was necessary to bring all current and potential operators together to meet directly with the agencies responsible for protecting our water and other natural resources."   Full Article Here

Companies Involved in the Marcellus Shale - Marcellus Shale Stocks

Discuss Stocks - http://stockstobuy.org

Chesapeake Energy CHKMarcellus Shale (West Virginia, Pennsylvania and New York):  With approximately 1.55 million net acres, an increase of approximately 50,000 net acres from the 2010 first quarter, Chesapeake is the largest leasehold owner, second-largest producer and most active driller in the Marcellus Shale play that spans from northern West Virginia across much of Pennsylvania into southern New York.  On its Marcellus leasehold, Chesapeake estimates it has approximately 460 bcfe of proved reserves (based on the 10-year average NYMEX strip prices at June 30, 2010) and 34.1 tcfe of risked unproved resources.  As a result of continued strong production results, the company has recently raised its average estimated ultimate recovery (EUR) on its Marcellus Shale acreage by approximately 24% from 4.2 bcfe per well to 5.2 bcfe per well.

During the 2010 second quarter, Chesapeake’s average daily net production of 105 mmcfe in the Marcellus increased approximately 65% over the 2010 first quarter and approximately 250% over the 2009 second quarter.  The company’s average daily net production rate in the Marcellus in July 2010 was approximately 130 mmcfe and the company anticipates adding more than 60 mmcfe of net production in the West Virginia portion of the play in the second half of 2010 once new natural gas processing facilities become operational.  Chesapeake is currently drilling with 26 operated rigs in the Marcellus and anticipates operating an average of approximately 28 rigs in 2010 to drill approximately 150 net wells.  During the 2010 second quarter, Chesapeake received approximately $144 million of drilling and completion carries from its Marcellus joint venture partner Statoil (NYSE:STO, OSE:STL).  From July 2010 through 2012, Chesapeake should receive approximately $1.7 billion in additional drilling carries from STO.

Marcellus. First Chesapeake production was 2008. Current gross operated production is 730 million cubic feet of gas equivalent per day. We are the top producer in the play as of July 31, 2011

If you have a lot of land in the Marcellus Shale fairway and want to sell your mineral rights, give Chesapeake a call.  More on CHK

-  EOG Resources EOG - Regarding the Pennsylvania Marcellus Shale Play, in total, we have 220,000 net acres. On our previous quarterly call we indicated we proven up about 40,000 acres in Bradford County by drilling two wells with two net Bcf of reserves each.  Additionally, we recently proved up additional acreage, we own via an NFG farmout by successfully testing the COP 409 #3H well in Elk County which we believe is a 1.6 Bcf net well. We plan to operate one rig in Pennsylvania this year.  More on EOG

-
Rex Energy REXX - Rex Energy (REXX) Marcellus Shale - Appalachian Basin — Marcellus Land Update

The company increased its acreage position by approximately 3,300 gross Marcellus acres during the first quarter, of which 1,200 acres were located in the Butler Operated Area, bringing its total acreage position in this area to approximately 68,400 gross (46,000 net) acres. The company believes this additional acreage adds approximately 46 gross wells to its Marcellus and Upper Devonian potential well counts in the Butler Operated Area. The majority of the remaining 2,100 net acres are located within Westmoreland County, bringing our total acreage position in this area to 16,700 gross (9,400 net) acres. Of the total $10.6 million spent on leasing in the Marcellus areas during the first quarter, $670,000 is expected to be reimbursed in the second quarter by Sumitomo.

 In Butler County, Pennsylvania, the company has drilled five gross (3.5 net) wells year-to-date, with six gross (3.1 net) wells fracture stimulated and five gross (2.4 net) wells placed into sales. The company currently has 18 gross (12.6 net) wells drilled and awaiting completion with another three gross (2.1 net) wells completed and awaiting pipeline infrastructure. 

In the company's non-operated area in Westmoreland County, Pennsylvania, where WPX Energy serves as the operator, WPX completed seven wells in the fourth quarter of 2011 and currently has no additional completion operations planned for 2012. The combined average 120 day sales rate from the seven most-recently completed wells at the Marco and National Metals pads are now trending 50% above the 4.2 BCF type-curve. Two of the wells on the National Metals pad were also completed using reduced cluster spacing or RCS completion methods. These wells are on trend to exceed our recent estimates of a 6.0 BCF type curve. For the month of March, the average production rate in the Westmoreland non-operated area was approximately 62.8 MMcf/d.

Appalachian Basin — Clearfield and Centre Counties, Pennsylvania

In Clearfield and Centre Counties, the average production rate for the month of March was 10.2 MMcf/d. WPX, the company's operator in the area, is not planning any further development in the Clearfield and Centre county areas for the remainder of the year.  The Utica Shale is also being tested in select PA counties

Marcellus Shale Map - Marcellus Shale Fairway
marcellusshale.JPG
Marcellus Shale

Marcellus Shale Jobs
shalejobs.jpg

St Mary Land and Exploration  SM -   St. Mary has drilled and completed its first two horizontal wells in this program. The wells are the Potato Creek 1H and the Potato Creek 3H (both SM 70% WI). These wells are located in McKean County, Pennsylvania. The Company is currently laying a temporary sales pipeline to test the first well. As a reminder, St. Mary has a total acreage position of approximately 41,000 net acres in McKean and Potter Counties in north central Pennsylvania.

Unit Corp UNT-  In the Marcellus Shale, we have now participated in two vertical wells located in Somerset County, Pennsylvania. The Shale (inaudible) segments in these wells came in as expected and completion work on these two wells should begin mid to late May. In addition, we'll participate in one more vertical well and two horizontal wells during the remainder of 2009 at approximate net cost of about $8 million. Anticipated first gas wells from these wells should occur later this year.

In this Somerset area we own approximately 180,000 gross and 55,000 net acres.

Exxon Mobil  XOM - Exxon Mobil (XOM) has a large position in the Marcellus Shale - In the Marcellus, we've got 5 rigs operating. And as you -- well, actually, we got 4 rigs operating. And as you know, we've got just under 700,000 acres in the Marcellus

- Anadarko Petroleum  APC -  Anadarko Petroleum (APC) Marcellus Shale:  In responding to the current weak natural gas price environment, we are planning rig reductions in the Marcellus Shale and Greater Natural Buttes assets and are evaluating opportunities to direct some of those rigs to areas like the Wattenberg Field that offer exceptional liquids-related returns.  More on APC

Southwestern Energy SWN  - Southwestern Energy SWN is active in the Marcellus Shale - Marcellus Shale – To date, Southwestern has participated in a total of 94 operated horizontal wells in northeast Pennsylvania, of which 24 were producing at March 31, 2012. Net production from the area was 9.3 Bcf in the first quarter of 2012, compared to 2.8 Bcf in the first quarter of 2011. At March 31, 2012, the company's gross operated production from the area was approximately 122 MMcf per day and was limited by high line pressures.

The company's marketing subsidiary also increased its firm transportation capacity in the Marcellus Shale area during the first quarter by entering into a precedent agreement with Constitution Pipeline Co. LLC for a proposed 121-mile pipeline connecting to the Iroquois Gas Transmission and Tennessee Gas Pipeline systems in Schoharie County, New York. Subject to the receipt of regulatory approvals and satisfaction of other conditions, the subsidiary agreed to enter a fifteen year firm transportation agreement with a total capacity of 150 MMcf per day. The project is expected to be in-service by the second quarter of 2015.

The graph below provides normalized average daily production data through March 31, 2012, for the company's horizontal wells in the Marcellus Shale. The "purple curve" indicates results for 10 wells with more than 12 fracture stimulation stages, the "orange curve" indicates results for 13 wells with 9 to 12 fracture stimulation stages and the "green curve" indicates results for 1 well with less than 9 fracture stimulation stages. The normalized production curves are intended to provide a qualitative indication of the company's Marcellus Shale wells' performance and should not be used to estimate an individual well's estimated ultimate recovery. The 4, 6, 8 and 10 Bcf typecurves are shown solely for reference purposes and are not intended to be projections of the performance of the company's wells.

Range Resources RRC -  Range Resources (RRC) Marcellus Shale Division -  Current Marcellus Shale production is approximately 460 Mmcfe per day net with roughly 80% of the production coming from the liquid-rich area of the play. We are on track to meet our 600 Mmcfe per day net production target by year-end 2012. During the first quarter, 28 horizontal wells were brought online in southwest Pennsylvania, all of which are located in the wet area of the play. The initial 24-hour production rates of the new wells averaged 6.6 Mmcf per day of natural gas and 252 barrels of NGLs and condensate per day or 8.2 (7.0 net) Mmcfe per day. Two wells in the wet area utilized the new reduced cluster spacing ("RCS") completion technique and produced at approximately twice the initial rate of non-RCS wells on the same pad. Due to the capacity limitations of the production facilities, many of the 28 newly connected wells are producing at constrained rates. Of significance at quarter-end there were three wells producing into sales at a combined rate of 45 (37.1 net) Mmcfe per day. Subsequent to the end of the quarter, three additional wells on the same pad were turned to sales with total production now at approximately 75 (61.8 net) Mmcfe per day. At quarter-end, in southwest Pennsylvania there were 57 Marcellus Shale wells waiting on completion and 43 additional wells waiting on pipeline. A few days ago, we commenced flowback operations on one well at the edge of the super-rich area. The peak one-day production was 108 barrels per day condensate, 501 barrels per day NGLs, and 7.1 Mmcf per day gas. If ethane was extracted, we estimate that the well would have made 6 Mmcf per day and over 1,300 barrels per day of liquids. (Range's net revenue interest in this well is 83.75%.) The well's lateral length is 2,752 feet and was completed with 14 stages using the RCS method. Based on its initial results, the new targeting methods combined with the RCS completion have significantly improved the well's performance and we believe that this could be impactful in both the wet and super-rich areas.

During the quarter, our first Upper Devonian test in the super-rich area of southwest Pennsylvania was drilled and is currently being completed. A second Upper Devonian test in the super-rich area is currently drilling. Rotary sidewall cores have been taken on both Upper Devonian wells. The preliminary core analysis is very encouraging from both wells.

During the first quarter, 10 horizontal wells were drilled in northeast Pennsylvania and five horizontal wells were turned to sales in the Lycoming County area. First quarter results include four wells that had outstanding 24-hour initial test rates. The average test rate for the four wells was 22 (18.9 net) Mmcf per day and the wells had an average lateral length of 3,000 feet with 10 stages. At the end of the first quarter, there were 8 wells waiting on pipeline and 21 wells waiting on completion in northeast Lycoming area. In Bradford County on our non-operated position, 10 (2.5 net) horizontal wells were drilled and 7 (1.8 net) wells were turned to sales. At the end of the quarter 15 (3.8 net) wells were waiting on pipeline and 22 (5.5 net) wells were waiting on completion. Range has no non-operated rigs running in Bradford County.   More on RRC

Chevron (CVX) - Chevron Corporation (NYSE: CVX) Marcellus Shale Update - I'll highlight some of our recent activities in the Marcellus Shale. In February of this year, we closed on the acquisition of Atlas Energy and are currently working to complete the integration of these assets into our North America business. In May, we announced the acquisition of assets from Chief Oil and Gas and Tug Hill.

Through these transactions, we added another 228,000 net acres of high-quality Marcellus Shale to our existing footprint. Largely focused in Southwestern Pennsylvania, the acreage includes over 30,000 acres of rich gas Marcellus in Marshall County, West Virginia. This expansion of our shale gas portfolio gives us additional high-quality resources, as well as strong synergies with existing operations.

Talisman Energy TLM  - Talisman Energy (TLM) Pennsylvania Marcellus Shale Update - In the Pennsylvania Marcellus, gas production was 529 mmcf/d, up 51% over the prior year with 36 wells coming onstream this quarter. We have reduced the number of rigs from 10 at the end of December to one in April, reflecting the company's shift away from dry gas to higher-value liquids projects. In February, Pennsylvania introduced a retroactive impact fee. This increased our operating costs in the quarter by $21 million, $18 million of which reflected a non-recurring, one-time impact for wells that were drilled pre-2012.

Penn Virginia  PVA - Penn Virginia (PVA) Marcellus Shale Update -  Marcellus Shale - During the second quarter of 2011, we drilled three (2.3 net) wells in the Marcellus Shale in Potter County, PA, including two (1.8 net) operated wells and one (0.5 net) non-operated well. One (1.0 net) operated well was completed and two (1.3 net) wells are WOC. We have reduced our 2011 guidance for the Marcellus Shale by six (5.5 net) horizontal wells. As previously disclosed, our recently completed wells failed to meet our expectations, but we plan to test the eastern portion of our acreage position in Potter and Tioga Counties, initially anticipated with vertical wells, commencing in the second half of 2011

Ultra Petroleum  UPL - Ultra Petroleum (UPL) is very active in the Marcellus Formation -  Pennsylvania - Operational Highlights

Ultra and its partners drilled 36 gross (15 net) horizontal Marcellus wells during the first quarter of 2012. In addition, 3 gross (1.5 net) horizontal wells were drilled in the Geneseo, a slightly shallower formation above the Marcellus. Also, the company and its partners initiated production from 39 gross (16 net) new horizontal Marcellus wells during the first quarter, maintaining a flat inventory of wells waiting on completion or pipeline connection. On a sequential basis, Ultra's daily average net production increased 32 percent to 197 MMcfe per day, as compared to 149 MMcfe per day in the fourth quarter of 2011. Year-over-year, Ultra's first quarter Marcellus production grew 114 percent.

Ultra Petroleum achieved a new Pennsylvania net production record of 223 MMcfe per day, a 19 percent increase over the previous record of 188 MMcfe per day established in the fourth quarter 2011. Furthermore, the company's new record is double the peak daily production rate of 110 MMcfe per day achieved during the first quarter 2011.

In Tioga County, the IP rates for the 21 wells brought online during the first quarter averaged 7.9 MMcfe per day. This compares to a 7.1 MMcfe per day average IP rate for the wells brought online in the same area during the fourth quarter 2011. The IP rates for the 18 wells brought online in Clinton and Lycoming counties averaged 6.3 MMcfe per day under a restricted flow back program. This compares to an average of 6.1 MMcfe per day for the wells brought online under similar conditions during the fourth quarter 2011. Well performance in both areas consistently delivers results that equal or exceed the company's type curve expectations.

The graph below provides normalized average daily production for Ultra's horizontal wells in the Marcellus. The grey dashed lines represent three, five and seven Bcfe type curves. The solid black line illustrates well performance in the company's Clinton and Lycoming County areas. The black dotted line charts well performance results from Ultra's activity in Potter and Tioga County. Production data from 202 wells is plotted on the chart.

EQT Corportation  EQT -  Geologists familiar with the Appalachian Basin have known for years about the Devonian black shale called the Marcellus. The Marcellus Shale is organically rich shale that lies nearly a mile or more beneath the surface throughout much of Ohio, West Virginia, Pennsylvania and New York.  The Marcellus Shale has in recent years emerged as a potential major contributor to the natural gas supply of the United States - large enough to be spoken of as a "super giant" gas field. With approximately 500,000 acres, more than 3.9 Tcfe 3P reserves and 11Tcfe of unrisked reserve potential in the Marcellus Fairway, EQT is a leading player in the Marcellus Shale.

February 2012 Update - The company drilled (spud) 222 gross wells during 2011; 105 targeted the Marcellus play with an average length of pay of 4,730 feet; and 115 targeted the Huron play with an average length of pay of 4,750 feet. As detailed in a separate press release issued today, proved reserves increased by 145 Bcfe to 5.4 Tcfe for 2011, resulting in a reserve to production (R/P) ratio of 27 years.   More on EQT

Cabot Oil & Gas COG -  Cabot Oil & Gas (COG) has land in the Marcellus Shale development field particularly in West Virginia & Pennsylvania.  Late in the first quarter, Cabot commenced free-flowing Marcellus gas in the Zick area that represents a 7-mile step-out to the east from the nearest production. The five wells averaged 78 million cubic feet (Mmcf) per day for the last 20 days. "The results of these wells have de-risked another substantial portion of our acreage position in Susquehanna," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "If there was concern about the productivity of our eastern acreage, those concerns should be mitigated. The five wells were completed in 92 frac stages and will have additional productive capacity once compression is operational."

Also in the Marcellus during the first quarter, a two-well pad site with longer laterals was completed resulting in a 30-day average production level of 40 Mmcf per day. The wells were drilled with 4,500' and 5,000' laterals and completed with 19 and 21 frac stages, respectively. "The results from these completions indicate the efficiency to be gained with longer laterals," commented Dinges. "This is simply another example of the productivity and additional opportunities on our acreage.".       More on COG

Hess Corp - HES  -  Marcellus Shale Update - If I turn to the Marcellus again, we're continuing to build our position in the Marcellus. We're at about 80,000 net acres now in the Marcellus, primarily in Wayne County, Pennsylvania. About 50,000 of that is Hess operated and the balance is part of this joint venture we have with Newfield. Our plan this year are to drill five to 10 wells during the second half of 2010 in order to evaluate the resource potential on the acreage.

-  Atlas Energy ATLS -  Atlas Energy ATLS Marcellus Shale -  ATLS expects to connect 16 Marcellus horizontal wells, drilled through the partnership management business, during the first quarter 2012. Eleven of these wells were drilled in 2011, and five of these Marcellus wells have been previously drilled and completed and are awaiting pipeline connection.

EXCO Resources XCO - Exco Resources (XCO) 2012 Update Marcellus shale  - Marcellus Shale Our current gross Marcellus shale production is approximately 116 Mmcf per day (20.2 Mmcf per day net), which represents an increase of more than 7% since the end of 2011. We have more than 35 Mmcf per day (7.4 Mmcf per day net) of production shut in due primarily to offset drilling and completion activities. We have implemented a development program within our acreage in northeast Pennsylvania and are concluding an appraisal program in central Pennsylvania. We plan to drill 49 gross (12.4 net) operated wells in the Marcellus shale play in our Appalachia region during 2012. Of the 49 wells, 46 gross (11.5 net) will be development wells and 3 gross (0.9 net) will be appraisal wells. Most of our drilling activity will be in Lycoming County, Pennsylvania where we are realizing our best returns in the Marcellus shale. We are currently drilling with three operated rigs in the play. Our net drilling dollars are reduced by the effect of the carry we receive from BG Group. Approximately $29.7 million of the carry remains available to us from BG Group as of March 31, 2012. We expect that the remaining carry will be used in 2012. During the first quarter 2012, we spud 11 new operated wells and drilled and completed 3 gross (1.2 net) operated wells in the Marcellus shale. These three completed wells included two appraisal wells in Central Pennsylvania and one delineation well in Northeast Pennsylvania. The two Central Pennsylvania appraisal wells are currently awaiting pipeline connections. We are also focused on building our field infrastructure in support of our expected levels of activity. Along with efficiency gains derived from our drilling and completion program, these infrastructure investments are expected to be the primary drivers to reduce our average development well costs.  Carrizo Oil & Gas CRZO - Carrizo Oil & Gas, Inc. (NASDAQ: CRZO) Marcellus Shale 2012 - The pace of development drilling activity in the Marcellus Shale is planned to slow in response to low gas prices to a level sufficient to hold the Company's leases. The Company expects to drill in northeast PA with the two current rigs until April when one rig will be released. In addition to the northeast PA development drilling, the Company expects to drill and complete 4 gross evaluation wells in central PA in the first half of the year. In Susquehanna County, the Company currently has 2 gross wells producing, 3 gross wells that are shut in to allow the completion of an adjacent pad, and 8 gross wells (located on 2 pads) that are undergoing completion. All 13 wells are expected to be on production in March.

- Dominion Resources D - Dominion Energy also made considerable progress in its infrastructure growth program. Dominion's Natural Gas Pipeline and Storage business has a significant list of projects intended to relieve existing congestion within its market area, as well as facilitating the development of the Marcellus Shale formation. For example, on May 20, Dominion Transmission signed a binding precedent agreement with CONSOL Energy to provide 200,000 decatherms per day of firm transportation service for Marcellus Shale volumes to the market hub at Leidy, Pennsylvania. This is referred to by us as the Marcellus Northeast Project and is expected to be in service by November 2012.

We had also recently signed an agreement to provide 150,000 decatherms per day to move Marcellus Shale volumes to Craigs, New York. This project, too, is expected to be in service by November 2012.

- Continental Resources CLR -  Continental Resources ( CLR ) now has exposure to the Marcellus Shale.  We now own 88,000 net acres in the Lower Huron, Rhinestreet Marcellus plays and continue to build on our position. The bulk for this acreage is located West Virginia, Ohio, and New York where the shales have at found debts of 1000 to 5400 feet. We're currently drilling our first-four wells targeting Rhinestreet, then Lower Huron shales in Southeast, Ohio.
.
- Marathon Oil  MRO -  Marathon Oil ( MRO ) is building a position in the Marcellus Shale ( Seeking Alpha ) -  And we’ve got four wells down in the Marcellus. We’ll drill probably a dozen more this year. We got our first crack away. And we’re looking at well casts. And I think you’ll see us pursue that play very similar to how we did the Bach, in terms of being measured, getting our technical data before we get serious about it.  But early indications are in terms of what we’ve seen from the jobs, we like it. We have 70,000 acres there and I think we’ll continue to play against that. So we feel very good about where we are.

Newfield Exploration NFX -  Newfield Enters the Marcellus Shale - On October 14, 2009, Newfield announced the signing of a joint exploration agreement with Hess Corporation in the Marcellus Shale play. The agreement covers up to 140,000 gross acres primarily in Susquehanna and Wayne Counties, Pennsylvania. Newfield will operate the new venture with each company having a 50 percent interest. The 2009 portion of Newfield's Marcellus Shale activities will be funded within the Company's existing $1.45 billion capital budget. Drilling operations are not expected to commence until 2010.

Consol Energy CNX - Consol Energy (CNX) Marcellus Shale Update - For drilling in the Marcellus and Utica shales,   Central PA: During the first quarter, CONSOL Energy drilled eight Marcellus wells, including four from the Gaut pad, one from the DeArmitt pad and three from the Bowers Unit. Gaut and DeArmitt are in CONSOL's development field in northwestern Westmoreland County, PA. Bowers is the first horizontal development for CONSOL in Jefferson County, PA. The eight Marcellus wells from the Aikens pad, which were drilled in late 2011, are currently being completed. Full production from the Aikens pad is expected by June 1, 2012.

In Central Pennsylvania, CONSOL Energy currently has one rig drilling.

Southwest PA: CONSOL continues its full-scale development drilling at several pads in Greene County. During the first quarter, CONSOL drilled 10 wells and brought four wells online at several pads with (perf-to-perf) laterals averaging 3,445 feet. These wells came on line in the last week in March, so EURs have yet to be calculated and had minimal impact to production in the first quarter. One well, the Morris 9-D, had peak production on April 9 of 10.5 MMcf.

In Southwest Pennsylvania, CONSOL currently has three rigs drilling.

Northern WV: CONSOL Energy drilled four wells during the quarter. Three were Alton wells in Upshur County and one was a Phillipi well in Barbour County. These wells will be completed in the second quarter. CONSOL Energy currently has one rig drilling in Northern West Virginia.

Noble Energy-Operated: Noble Energy drilled five wells on the SHL-3 pad in Marshall County, W. Va. None has been turned online. Noble Energy has one rig drilling in the liquids-rich area of the Marcellus Shale.

Petroleum Development Corp PETD - Petroleum Development PETD Marcellus Shale - PDC's Marcellus joint venture recently initiated its second-half 2011 drilling program of nine horizontal Marcellus wells. Completions are expected to begin in September and will continue throughout the remainder of 2011. Production growth in the Appalachian Basin from this nine well program is expected to be significant as the Company moves through the third and fourth quarters of 2011. Based on results of the initial six wells in this play, the Company anticipates reserves from its Marcellus drilling program to increase from a range of 3 to 5 Bcfe per well, to a range of 3 to 6 Bcfe per well.  Operating plans for the nine well program in the second-half of 2011 are to drill 4,000 to 6,000 foot horizontal laterals with 12 to 18 stages per well, for a total drill and complete cost of approximately $5.2 to $6.4 million. Overall, the most recent horizontal completions contributed to a 118% improvement in Appalachian production in the second quarter of 2011 compared to second quarter 2010.

Barton R. Brookman, Senior Vice President — Exploration and Production, commented, "We are very pleased with our operating team's execution in the development of both the horizontal Niobrara and Marcellus Shale programs.

Noble Energy (NBL) - Noble Energy (NBL)  enters the Marcellus Shale Natural Gas Field - And finally, we announced and closed in the quarter the acquisition of a very significant position in the Marcellus Shale to the formation of a joint venture with CONSOL Energy. As a result, we now find ourselves rapidly speeding toward a significant inflection point in our growth profile. An inflection point that's driven by accelerating Niobrara drilling, the new and rapidly growing Marcellus production, as well as the pending startups of Aseng in West Africa, as well as Raton South in Galapagos in the Deepwater Gulf of Mexico.

- Trans Energy TENG - Trans Energy is very active in the Marcellus Shale and has announced in Jan 2009 a Marion County, WV well.  TENG announced that its Blackshere #101 well in Marion County, West Virginia was successfully fraced on December 29th and is currently awaiting connection to a sales line.  The Blackshere #101 is completed in the Marcellus shale, a prolific new “resource play” in Appalachia, similar to the Barnett, Fayetteville and Haynesville shales which have grown to become a significant base of hydrocarbon reserves in the United States.
James K. Abcouwer, President and CEO of Trans Energy, said “This fourth Marcellus well is located in Marion County which is the county to the east of our existing Marcellus wells and is a step out of what we consider our proven area.  We are delighted with its   initial indications. We are optimistic that the positive results from our three vertical wells in Wetzel County and now with our most recent completion in Marion County can be replicated throughout our acreage position in northern West Virginia.  We’re now beginning a horizontal well program in yet another significant step forward for Trans Energy to properly develop its acreage position.  We’re pleased to have achieved this sizeable acreage position centered on the Wetzel-Marion-Doddridge Counties area, which looks to be one of the most – if not the most – prolific part of the Marcellus resource in Appalachia.”

Encana ECA - Encana has recently entered the Marcellus Shale - More to come in the following months ahead.

Stone Energy  SGY - Stone Energy (SGY) Appalachian Basin (Marcellus Shale Play). During the first quarter of 2012, the Caiman pipeline constraints from the Mary field were addressed allowing eleven Mary field wells from two pads to flow (at a slightly constrained rate) by the end of the first quarter. Total first quarter net production from the Marcellus shale including volumes from the Mary, Heather, Buddy and Katie fields was approximately 29 MMcfe per day. Drilling continues on the liquid rich Mary and Heather fields in West Virginia with a total of seven horizontal wells drilled year to date. Stone has fracture-stimulated six more wells at its Mary field with first production from this new pad scheduled by early third quarter of 2012. Additionally, fracture-stimulations have commenced on seven more wells in the Mary field, with first production anticipated by early fourth quarter of 2012. Stone expects to drill between 22 and 27 horizontal wells and complete 20 to 26 wells in the Mary and Heather fields during 2012.

Pioneer Drilling  PDL - During the second quarter, we established an Appalachian drilling division to focus on operations in the Marcellus Shale. We currently have one drilling rig operating in our Appalachian division, with a second rig expected to begin operating by late August 2009. In addition, we launched wireline operations in the Marcellus Shale play.

StatOil  STO - On 26 March Statoil signed an agreement with Chesapeake which added approximately 59 thousand net acres to Statoil's current 600 thousand net acre position in the Marcellus shale gas play.

Williams Company WMB - Williams Company WMB Marcellus Shale - In the Marcellus shale, the company is currently operating four rigs and expects to increase its level of drilling activity to eight or nine rigs by the end of 2012. In Susquehanna County, the company has approximately 70 MMcf/d of production waiting on the expected September 2011 completion of the Laser pipeline.

Gastar Exploration GST - Gastar Exploration (GST) Marcellus Shale - In Marshall County, West Virginia, we currently have two drilling rigs working in our Marcellus West area. By year-end 2011, we expect to have nine horizontal Marcellus wells on sales and 10 horizontal Marcellus wells drilled and awaiting completion. All of our Marcellus Shale wells drilled in Marshall County are part of our joint venture with Atinum Partners Co, Ltd. (the "Atinum Joint Venture"). After all drilling and completion costs have been incurred, our working interest in these wells will range from 40% to 50%.

In mid-August 2011, we began producing the Wengerd 1H and 7H horizontal wells at an initial combined 30-day average gross sales rate of approximately 7.1 MMcf per day of natural gas, 176 barrels of condensate and 347 barrels of natural gas liquids (“NGLs”). On September 23, 2011, the pipeline operator shut in the pipeline due to weather-related damage to the natural gas and condensate gathering system. While the pipeline was being repaired, we installed tubing into the two Wengerd wells that would enable us to improve NGLs and condensate recovery and returned them to production on October 21, 2011. Initially, production was restricted due to excessively high line pressures following the pipeline repair, but this matter was recently resolved. The two wells’ most recent combined four day average gross sales rate is 8.1 MMcf per day of natural gas, 200 barrels of condensate per day and 490 barrels of NGLs per day.

Also in Marshall County, we have completed fracture stimulation operations on the Corley pad (four horizontal wells), with first sales anticipated in mid-November 2011. Currently, we are commencing fracture stimulation operations on the three-well Simms pad with first production anticipated mid-December 2011. As of September 30, 2011, drilling operations have been completed on the Hendrickson 1H, 2H and 4H wells, and we completed drilling operations on the Hendrickson 3H and 5H wells in late October 2011. Fracture stimulation operations on all five Hendrickson wells are anticipated to commence in March 2012, and first sales are anticipated in the second quarter of 2012. Currently, we have commenced drilling operations from the Hall pad (three wells) and the Burch Ridge pad (five wells), and we expect to commence drilling operations on the Accettolo pad (three wells) prior to year end.

On our Marcellus East position in Preston County, West Virginia, we have drilled one horizontal well to test this acreage, which is 100% owned by Gastar. In August 2011, we completed the Hickory Ridge 2H horizontal Marcellus well, a 2,500-foot lateral completed with a 10-stage fracture stimulation, and we are currently flowing back completion fluids. First sales from the Hickory Ridge 2H are anticipated by year end. Our focus for the remainder of 2011 and through 2012 in the Marcellus East acquisition area is to perform a 3-D seismic survey over a portion of the acreage, with no additional wells currently planned during that time frame.

In Butler County, Pennsylvania, Gastar and Atinum have been participating in seven wells with Rex Energy as operator. Three wells are expected to be on sales by year-end, with the remaining four wells expected to go online in early 2012.

Shale News

↑ Grab this Headline Animator

What Stocks are you Buying?
stockstobuy.org
Join and Receive Free Stock Alerts