Enverus Blog

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It has been awhile since I have blogged on the Marcellus so I thought I would provide just simple activity update.  Just a rundown on who the top operators are in the play, operations, production, and leasing.  All provided by Drillinginfo.

Here is a look at permitting activity and recent production metrics.

A Marcellus Activity Update Using Drillinginfo

A Marcellus Activity Update Using Drillinginfo

So it appears Chesapeake, Swepi LP (Shell), Range, CNX (CONSOL), and Anadarko top the permitting list.  Here is a brief overview of these companies’ operations in the Marcellus.

Chesapeake:  The largest lease holder in the Marcellus with 1.8 million acres.  At mid-year the company had 10 rigs operating in the dry gas portion of the play, but plans to reduce that count to 6 rigs for the remainder of 2012. CHK’s average daily net production in the northern dry gas portion of the play was 495 Mmcfe.

Range Resources:  Over 1 million net acres prospective to the Marcellus in Pennsylvania.  Half of that acreage is in the southwest portion of the state where Range is heavily developing their wet and super-rich gas acreage.  Range reported EURs of 281 Mbbls and 4.2 BCF and well costs of $4.0 million in the southwestern area.

CNX Operating:  Focusing on 100% NRI acreage in Greene and Westmoreland counties.  CNX has plans to ramp up development of wet acreage position with partner, Noble Energy.  The company plans 91 gross wells this year, with 31 targeting liquids.  CONSOL recently reported an update on their Marcellus wells and improving costs.  This year average frac stage per well is 18 with costs of $181,000/stage, that’s $504/foot, and an average lateral length of 5,687 feet.

Anadarko:  260,000 net acres in central Pennsylvania.  Anadarko recently reduced their rig count from seven to four last quarter.  The company has partnered with Mitsui to develop the Marcellus.  Mitsui has a 32.5% of the assets in the agreement.

Since natural gas prices remain low, less than $3/Mcf, the overall story coming out of the Marcellus is a decrease in rigs and capital expenditures.  On top of that, the Marcellus continues to be on the front lines in the battle between the oil and gas industry and environmental groups.  The New York side of the Marcellus remains untouched, while state and local economies in Pennsylvania continue to benefit from the natural gas drilling boom.  The Pennsylvania Public Utility Commission (PUC) recently released information on funds collected by the commission from the unconventional gas well fee or drilling impact fee for oil and gas companies developing the Marcellus Shale.  The PUC received $197.6 million in fees from $205.9 million in assessments.  Chesapeake paid $30.84 million for 624 wells, Range paid $23.67 million for 475 wells, Talisman $15.3 million for 307 wells, and Anadarko with $14.95 million for 299 wells.

For more information on other operators, environmental issues, drilling costs and more check out the Marcellus folder of Drillinginfo’s DNA section.

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