Topic: Marcellus Shale

New Well Highlights from Bakken, Marcellus, Anadarko, and Wolfcamp

Hunt Oil Completes 2-mile Lateral in Bakken (2018-07-24) Hunt Oil Company has completed a Bakken well, the AUSTIN 154-90-27-22H-1, in Mountrail county, North Dakota.The AUSTIN 154-90-27-22H-1 had an initial production rate of 1073 bbl of oil, 570 MMcf of gas, and 341 bbl of water. Drilled at a depth of 9,420-ft, the 10,509-ft lateral well completed with plug and perf system. Hunt Oil Company reported a max pressure of 7,073 PSI and max rate of 62 barrels per minute in its...

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Pressure Pumpers Fall Prey to Efficiency

Completion efficiencies in the Marcellus/Utica formations of the US Northeast have changed the perception of the mature gas basin. The implementation of longer laterals and increased proppant loading intensity have lowered production costs and raised production. However, pressure pumpers in the Appalachia are expecting a slow-down in the back half of 2018 due to operators reaching production targets sooner than expected given increased operational efficiencies.Recent data shows a 9% decline in Marcellus fleet utilization. In June, utilization totaled approximately 93%...

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The Proppant Demand Dichotomy in Appalachia Super Laterals

While the Appalachia Basin only accounts for roughly 15% of total proppant usage in the Lower 48, the US Northeast has some of the highest proppant amounts per well. In 1Q18 a typical completion in the Appalachia Basin averaged roughly 16 million pounds, or 8,000 tons, representing a 7% increase year-over-year. Comparatively, the US average is roughly 13 million pounds or 6500 tons. This is partially attributable to specific operators in the region testing longer “super laterals.” Figure 1. Proppant Amount and...

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Marcellus Longer Laterals

Super Laterals Trending in the US Northeast

Operators across the Lower 48 are continuously enhancing their drilling and completion techniques to extract the most out of any given well. While lateral length trends vary in each basin, operators in the Marcellus and Utica in the US Northeast are testing some of the longest laterals in the country—beyond 20,000’ in some cases—and are showing no signals of slowdown. Operators in the Marcellus and Utica are drilling 9,035-foot average laterals in 2017. Year-to-date in 2018, the average lateral length...

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Is History Repeating in the US Pressure Pumping Market?

Since 2012, the percantage of horizontal rigs running in the Permian Basin has steadily increased. The percent of horizontal rigs in the Permian grew from 14% in January 2013 to 27% in January 2015. Now, the Permian accounts for over 42% of the active horizontal rigs in the US land market.This year the Permian gained 100 horizontal rigs, a 46% increase in horizontally directed rigs. The year-over-year horizontal rig increase is a staggering 174% for the prolific basin. At this...

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Anadarko Divests in 2016 to Accelerate Activity in the Delaware and DJ Basins

On January 31, 2017, Anadarko Petroleum Corporation (NYSE: APC) announced its Q4 earnings as well as its full-year results for 2016. In 2016 Anadarko improved cost structure and advanced efficiency initiatives, resulting in a 50% reduction in capital investments relative to 2015.Specific highlights of 2016 cited in the announcement included the following: Value-Accretive Monetizations In Q4 Anadarko signed agreements to divest assets in the Marcellus Shale ($1.24 billion) and the Eagle Ford Shale ($2.3 billion). Both transactions are expected to close by the...

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Range Resources Shows Results for 5-well Pads

Range Resources (NYSE: RRC) focuses operations in the Southern Marcellus and Northern Louisiana plays having over 1 million net surface acres. In the third quarter the company closed the merger with Memorial Resources Development adding acreage in Northern Louisiana and expanding their reach. The Range team focused on their use of pad development in the Marcellus in the third quarter conference call showing efficiencies and cost reductions.Source: Range ResourcesProven Results with Pad Development There are about 230 pads in Ranges inventory...

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Proppant Insights: The Battle for Frac Sand Market Share

The last quarter brought about activity across frac sand suppliers as providers continued moving towards the Permian Basin. For the last three quarters, Permian leads proppant demand. Due to the reporting lag in completions, expect the Q2 numbers to increase by another 10-20%.Since 2015 Q4, E&P companies in the Permian have consumed approximately 11 billion pounds of frac sand. Recent well reports show 1,200 - 1,500 pounds of proppant per lateral foot in the Delaware. A few E&P's are pumping nearly...

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