Talisman held their quarterly conference call and update this week and they released some great information. One thing that was highlighted multiple times is the fact that they exceeded 190 Mmcf/d of production during the month of July and averaged 143 Mmcf/d in the second quarter 2010. This is a good step and seems to be on track with their target 2010 exit production of 250-300Mmcf/d. During the 1st half of the year they drilled 76 net wells and brought on 61 net wells which, again, puts them on track with their 145 wells for the year.
Talisman is using up to 15 stage fracs but have a bias to go as long as possible with lateral lengths going as long as leases allow. They have increased their amount of sand when fracing using 1,000-1,500lbs of sand per foot in what they call a super frac. Their average well cost in the play is approximately $4.3 million, of which $2.5-$2.6 million are frac costs. They are currently in long-term contracts for stimulation crews, well service crews and rigs to lock in lower costs. They also mentioned that they are not choking back wells in the play because their break even threshold is $4 per Mcf of gas and gas is currently selling above that.
Talisman is in two new areas of the play in Columbia and Susquehanna Counties and will stay in the dry gas part of the play due to technical reasons. It was also mentioned in the Range Resources conference call that Talisman is combining about 14,000 net acres with Range in eastern Bradford County and Talisman will operate while Range will have a 33% working interest.
To learn more visit the Talisman Marcellus Operator Folder in the Unconventional Updates in DI’s DNA.
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