EQT Marcellus Assets Producing Strong

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EQT Corporation released an analyst presentation and had a conference call recently that showed how the Company plans to give large amounts of attention to its Marcellus Play assets in 2011.  EQT has roughly 12.2 Tcfe 3P reserves (potentially 20 Tcfe) in their ~500,000 acres in the Marcellus Play as of December 31, 2010. A total of 86 wells are planned to be drilled in 2011 with an average well cost of $5.3MM/well. EUR is suspected to reach 7.3 Bcfe per well while the average length will be 5,300 ft.

Below is a map of permits that EQT has acquired in the play over the last three months with data being bubbled by well depths.  The Tioga wells appear a bit deeper, but this could be a product of longer laterals.

EQT Marcellus Assets Producing Strong

 

 

 

 

 

 

 

 

 

 

 

Most recent permits were issued in Tioga County over the last month.  This has been a fairly hot county to produce in recently as Hess Corporation, Chesapeake, East Resources, Seneca Resources, and Ultra Resources have all gathered permits here in the last three months.

EQTs 2011 well plan has been separated into three different areas of the play and can be seen below in a map that was presented in their analyst presentation earlier this week.

EQT Marcellus Assets Producing Strong

EQT provided decline curve data that I made into an actual plot so that we could easily see how the Company expects their production to go since they began producing the Marcellus Play.  The 50 year projection seems a bit longwinded in these early days of shale production, and the hyperbolic bend begins very early.

EQT Marcellus Assets Producing Strong

The Company plans to increase recovery by targeting reservoirs that are the most brittle with high porosity and permeability and also using a “fishhook” drilling design as opposed to a conventional horizontal drilling design. So far efforts have paid off and productivity has more than doubled since 2008. Keep checking back for more Marcellus updates in the DNA section of Drillinginfo.

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Matt Menchaca

Matthew Menchaca is a Research Analyst at Drillinginfo. He is a key member of the Data Management Department and the DI Analytics group. He performs industry research, tracks play development and provides various types of analysis on unconventional resource plays in the U.S. Matthew graduated from the University of Texas at Austin in 2010 after studying Geography and Geological Sciences.