American Oil and Gas Reporter - August 2017 - 82

SpecialReport: Marcellus/Utica Update

A Southwestern Energy rig is shown here drilling in the northern West Virginia Panhandle, where the company has Marcellus, Utica and Upper Devonian targets, thanks to a
2015 acquisition. Southwestern says its first Utica well was flowing at 17 million cubic
feet a day in April, and has an estimated ultimate recovery of 2.5 billion-3.0 billion cubic
feet per 1,000 feet of lateral.

result of completion and optimized flowback changes being implemented, he says
the average EUR improved by more than
25 percent compared with historical well
results in Susquehanna County.
Southwestern also placed seven delineation wells to sales in Tioga, Wyoming
and Susquehanna counties in the first
quarter. The two wells in Tioga County
each had an average lateral length of
6,700 feet and an average 30-day rate of
13 MMcf/d. Bergeron says these wells
are expected to improve as compression
is added.
He says the two wells in the western
part of Susquehanna County-on acreage
acquired in 2015-are outperforming offsets
by more than 100 percent and each had
an average 30-day rate of 15 MMcf/d.
Thanks to the successful results in
these areas, Bergeron says Southwestern
has derisked approximately 40,000 net
acres and plans to continue delineation
efforts throughout this year.
Dell'Osso says Southwestern has access
to multiple high-quality pricing locations
through its low-cost, integrated firm transportation portfolio.
He acknowledges that Southwestern
previously built its northeastern Pennsylvania operations to win in a $4 gas price
environment, but says it has chased improvements to make its operations profitable at lower commodity prices. Del82 THE AMERICAN OIL & GAS REPORTER

l'Osso says the company has restructured
many of its gathering agreements, which
in turn has lowered its cost structure.
He indicates Southwestern also has
used a hedging program to manage and
mitigate risk, and to buffer the company
against price volatility.

Stacked Pays
Meanwhile, Southwestern's operations
in West Virginia and southwestern Pennsylvania target stacked pays that include
the Marcellus, Utica and Upper Devonian
formations.
"We have nothing west of the Ohio
River," remarked Derek Cutright, Southwest Appalachia division leader in June.
"The majority of our wells are in the
Marcellus. We have more than 300 producing Marcellus wells and three
Utica/Upper Point Pleasant wells."
Southwestern acquired the assets in
late 2014 and early 2015, and has approximately 321,000 net acres and plans
to turn 52-60 wells to sales in 2017.
"The majority of activity is in West
Virginia's northern panhandle, which is
liquids rich," Cutright continues. "The
Marcellus has about 40 percent gas and
60 percent liquids. As you go south into
Wetzel County, it is the reverse: about
60 percent gas and 40 percent liquids.
Most of West Virginia is liquids rich. As
you move east into Greene County, Pa.,

you are back into dry gas."
The Utica formation, which lies below
the Marcellus Shale, is dry gas, according
to Cutright. He says Southwestern is in
the delineation phase of its Utica exploration to determine what the Utica offers
to compete with its Marcellus operations.
The company's first Utica well, the
OE Burge, was flowing at a flat rate of
17 MMcf/d in April with more than
8,500 psi of pressure. Early results indicate
this well is top quartile for the region,
with an EUR of 2.5 Bcf-3.0 Bcf per
1,000 feet of lateral. Bergeron claims
this type of productivity shows the Utica's
potential in the company's estimated
1,400 locations.
Cutright explains that Southwestern
continues to look for ways to make improvements within its performance strategy
of completion optimization, lateral placement and flowback techniques to maximize hydrocarbon recoveries.
"We have moved our completion strategy from 1,700 pounds of sand per foot
to 2,500 pounds per foot with positive
results (about a 20 percent improvement
in EUR)," he offers. "We are testing
2,500-3,500 pounds per foot in the liquids-rich wells. In fact, we have tested
as high as 5,000 pounds per foot, although
we have pulled back from that. We are
in phase two of testing with a more intensive completion strategy, and we are
seeing a 40 percent uplift."
Southwestern placed five wells on
line that tested tighter stage spacing and
increased proppant loads. Four of them
were completed utilizing 140-foot stage
spacing and 3,500 pounds of proppant
per foot, while the fifth well utilized as
much as 5,000 pounds of proppant per
foot. The company is continuing to monitor
these five test wells to determine longterm performance enhancements, according to Cutright, but early indications are
that all five will perform better than their
closest offsets.
He says Southwestern continues to
challenge its completions-optimization
team to accomplish more with less cost.
A Shift To E&P

Much of CONSOL Energy's 153-year
history in the Appalachian Basin involved
coal mining. But Brian Aiello, director
of communications for CONSOL, says
the company expects to complete splitting



Table of Contents for the Digital Edition of American Oil and Gas Reporter - August 2017

Contents
American Oil and Gas Reporter - August 2017 - 1
American Oil and Gas Reporter - August 2017 - 2
American Oil and Gas Reporter - August 2017 - 3
American Oil and Gas Reporter - August 2017 - Contents
American Oil and Gas Reporter - August 2017 - 5
American Oil and Gas Reporter - August 2017 - 6
American Oil and Gas Reporter - August 2017 - 7
American Oil and Gas Reporter - August 2017 - 8
American Oil and Gas Reporter - August 2017 - 9
American Oil and Gas Reporter - August 2017 - 10
American Oil and Gas Reporter - August 2017 - 11
American Oil and Gas Reporter - August 2017 - 12
American Oil and Gas Reporter - August 2017 - 13
American Oil and Gas Reporter - August 2017 - 14
American Oil and Gas Reporter - August 2017 - 15
American Oil and Gas Reporter - August 2017 - 16
American Oil and Gas Reporter - August 2017 - 17
American Oil and Gas Reporter - August 2017 - 18
American Oil and Gas Reporter - August 2017 - 19
American Oil and Gas Reporter - August 2017 - 20
American Oil and Gas Reporter - August 2017 - 21
American Oil and Gas Reporter - August 2017 - 22
American Oil and Gas Reporter - August 2017 - 23
American Oil and Gas Reporter - August 2017 - 24
American Oil and Gas Reporter - August 2017 - 25
American Oil and Gas Reporter - August 2017 - 26
American Oil and Gas Reporter - August 2017 - 27
American Oil and Gas Reporter - August 2017 - 28
American Oil and Gas Reporter - August 2017 - 29
American Oil and Gas Reporter - August 2017 - 30
American Oil and Gas Reporter - August 2017 - 31
American Oil and Gas Reporter - August 2017 - 32
American Oil and Gas Reporter - August 2017 - 33
American Oil and Gas Reporter - August 2017 - 34
American Oil and Gas Reporter - August 2017 - 35
American Oil and Gas Reporter - August 2017 - 36
American Oil and Gas Reporter - August 2017 - 37
American Oil and Gas Reporter - August 2017 - 38
American Oil and Gas Reporter - August 2017 - 39
American Oil and Gas Reporter - August 2017 - 40
American Oil and Gas Reporter - August 2017 - 41
American Oil and Gas Reporter - August 2017 - 42
American Oil and Gas Reporter - August 2017 - 43
American Oil and Gas Reporter - August 2017 - 44
American Oil and Gas Reporter - August 2017 - 45
American Oil and Gas Reporter - August 2017 - 46
American Oil and Gas Reporter - August 2017 - 47
American Oil and Gas Reporter - August 2017 - 48
American Oil and Gas Reporter - August 2017 - 49
American Oil and Gas Reporter - August 2017 - 50
American Oil and Gas Reporter - August 2017 - 51
American Oil and Gas Reporter - August 2017 - 52
American Oil and Gas Reporter - August 2017 - 53
American Oil and Gas Reporter - August 2017 - 54
American Oil and Gas Reporter - August 2017 - 55
American Oil and Gas Reporter - August 2017 - 56
American Oil and Gas Reporter - August 2017 - 57
American Oil and Gas Reporter - August 2017 - 58
American Oil and Gas Reporter - August 2017 - 59
American Oil and Gas Reporter - August 2017 - 60
American Oil and Gas Reporter - August 2017 - 61
American Oil and Gas Reporter - August 2017 - 62
American Oil and Gas Reporter - August 2017 - 63
American Oil and Gas Reporter - August 2017 - 64
American Oil and Gas Reporter - August 2017 - 65
American Oil and Gas Reporter - August 2017 - 66
American Oil and Gas Reporter - August 2017 - 67
American Oil and Gas Reporter - August 2017 - 68
American Oil and Gas Reporter - August 2017 - 69
American Oil and Gas Reporter - August 2017 - 70
American Oil and Gas Reporter - August 2017 - 71
American Oil and Gas Reporter - August 2017 - 72
American Oil and Gas Reporter - August 2017 - 73
American Oil and Gas Reporter - August 2017 - 74
American Oil and Gas Reporter - August 2017 - 75
American Oil and Gas Reporter - August 2017 - 76
American Oil and Gas Reporter - August 2017 - 77
American Oil and Gas Reporter - August 2017 - 78
American Oil and Gas Reporter - August 2017 - 79
American Oil and Gas Reporter - August 2017 - 80
American Oil and Gas Reporter - August 2017 - 81
American Oil and Gas Reporter - August 2017 - 82
American Oil and Gas Reporter - August 2017 - 83
American Oil and Gas Reporter - August 2017 - 84
American Oil and Gas Reporter - August 2017 - 85
American Oil and Gas Reporter - August 2017 - 86
American Oil and Gas Reporter - August 2017 - 87
American Oil and Gas Reporter - August 2017 - 88
American Oil and Gas Reporter - August 2017 - 89
American Oil and Gas Reporter - August 2017 - 90
American Oil and Gas Reporter - August 2017 - 91
American Oil and Gas Reporter - August 2017 - 92
American Oil and Gas Reporter - August 2017 - 93
American Oil and Gas Reporter - August 2017 - 94
American Oil and Gas Reporter - August 2017 - 95
American Oil and Gas Reporter - August 2017 - 96
American Oil and Gas Reporter - August 2017 - 97
American Oil and Gas Reporter - August 2017 - 98
American Oil and Gas Reporter - August 2017 - 99
American Oil and Gas Reporter - August 2017 - 100
American Oil and Gas Reporter - August 2017 - 101
American Oil and Gas Reporter - August 2017 - 102
American Oil and Gas Reporter - August 2017 - 103
American Oil and Gas Reporter - August 2017 - 104
American Oil and Gas Reporter - August 2017 - 105
American Oil and Gas Reporter - August 2017 - 106
American Oil and Gas Reporter - August 2017 - 107
American Oil and Gas Reporter - August 2017 - 108
American Oil and Gas Reporter - August 2017 - 109
American Oil and Gas Reporter - August 2017 - 110
American Oil and Gas Reporter - August 2017 - 111
American Oil and Gas Reporter - August 2017 - 112
American Oil and Gas Reporter - August 2017 - 113
American Oil and Gas Reporter - August 2017 - 114
American Oil and Gas Reporter - August 2017 - 115
American Oil and Gas Reporter - August 2017 - 116
American Oil and Gas Reporter - August 2017 - 117
American Oil and Gas Reporter - August 2017 - 118
American Oil and Gas Reporter - August 2017 - 119
American Oil and Gas Reporter - August 2017 - 120
American Oil and Gas Reporter - August 2017 - 121
American Oil and Gas Reporter - August 2017 - 122
American Oil and Gas Reporter - August 2017 - 123
American Oil and Gas Reporter - August 2017 - 124
http://www.nxtbook.com/nxtbooks/aogr/202001
http://www.nxtbook.com/nxtbooks/aogr/201912
http://www.nxtbook.com/nxtbooks/aogr/201911
http://www.nxtbook.com/nxtbooks/aogr/201910
http://www.nxtbook.com/nxtbooks/aogr/201909
http://www.nxtbook.com/nxtbooks/aogr/201908
http://www.nxtbook.com/nxtbooks/aogr/201907
http://www.nxtbook.com/nxtbooks/aogr/201906
http://www.nxtbook.com/nxtbooks/aogr/201905
http://www.nxtbook.com/nxtbooks/aogr/201904
http://www.nxtbook.com/nxtbooks/aogr/201903
http://www.nxtbook.com/nxtbooks/aogr/201902
http://www.nxtbook.com/nxtbooks/aogr/201901
http://www.nxtbook.com/nxtbooks/aogr/201812
http://www.nxtbook.com/nxtbooks/aogr/201811
http://www.nxtbook.com/nxtbooks/aogr/201810
http://www.nxtbook.com/nxtbooks/aogr/pbios_201810
http://www.nxtbook.com/nxtbooks/aogr/201809
http://www.nxtbook.com/nxtbooks/aogr/201808
http://www.nxtbook.com/nxtbooks/aogr/201807
http://www.nxtbook.com/nxtbooks/aogr/201806
http://www.nxtbook.com/nxtbooks/aogr/201805
http://www.nxtbook.com/nxtbooks/aogr/201804
http://www.nxtbook.com/nxtbooks/aogr/201803
http://www.nxtbook.com/nxtbooks/aogr/201802
http://www.nxtbook.com/nxtbooks/aogr/201801
http://www.nxtbook.com/nxtbooks/aogr/201712
http://www.nxtbook.com/nxtbooks/aogr/201711
http://www.nxtbook.com/nxtbooks/aogr/201710
http://www.nxtbook.com/nxtbooks/aogr/201709
http://www.nxtbook.com/nxtbooks/aogr/201708
http://www.nxtbook.com/nxtbooks/aogr/201707
http://www.nxtbook.com/nxtbooks/aogr/201706
http://www.nxtbook.com/nxtbooks/aogr/201705
http://www.nxtbook.com/nxtbooks/aogr/201704
http://www.nxtbook.com/nxtbooks/aogr/201703
http://www.nxtbook.com/nxtbooks/aogr/201702
http://www.nxtbook.com/nxtbooks/aogr/201701
http://www.nxtbook.com/nxtbooks/aogr/201612
http://www.nxtbook.com/nxtbooks/aogr/201611
http://www.nxtbook.com/nxtbooks/aogr/201610
http://www.nxtbook.com/nxtbooks/aogr/pbios2016_programguide
http://www.nxtbook.com/nxtbooks/aogr/201609
http://www.nxtbook.com/nxtbooks/aogr/201608
http://www.nxtbook.com/nxtbooks/aogr/201607
http://www.nxtbook.com/nxtbooks/aogr/201606
http://www.nxtbook.com/nxtbooks/aogr/201605
http://www.nxtbook.com/nxtbooks/aogr/201604
http://www.nxtbook.com/nxtbooks/aogr/201603
http://www.nxtbook.com/nxtbooks/aogr/201602
http://www.nxtbook.com/nxtbooks/aogr/201601
http://www.nxtbook.com/nxtbooks/aogr/201512
http://www.nxtbook.com/nxtbooks/aogr/201511
http://www.nxtbook.com/nxtbooks/aogr/201510
http://www.nxtbook.com/nxtbooks/aogr/201509
http://www.nxtbook.com/nxtbooks/aogr/201508
http://www.nxtbook.com/nxtbooks/aogr/201507
http://www.nxtbook.com/nxtbooks/aogr/201506
http://www.nxtbook.com/nxtbooks/aogr/201505
http://www.nxtbook.com/nxtbooks/aogr/201504
http://www.nxtbook.com/nxtbooks/aogr/201503
http://www.nxtbook.com/nxtbooks/aogr/201502
http://www.nxtbook.com/nxtbooks/aogr/201501
http://www.nxtbook.com/nxtbooks/aogr/201412
http://www.nxtbook.com/nxtbooks/aogr/201411
http://www.nxtbook.com/nxtbooks/aogr/201410
http://www.nxtbook.com/nxtbooks/aogr/201409
http://www.nxtbook.com/nxtbooks/aogr/pbios2014_programguide
http://www.nxtbook.com/nxtbooks/aogr/201408
http://www.nxtbook.com/nxtbooks/aogr/201407
http://www.nxtbook.com/nxtbooks/aogr/201406
http://www.nxtbook.com/nxtbooks/aogr/201405
http://www.nxtbook.com/nxtbooks/aogr/201404
http://www.nxtbook.com/nxtbooks/aogr/201403
http://www.nxtbook.com/nxtbooks/aogr/201402
http://www.nxtbook.com/nxtbooks/aogr/201401
http://www.nxtbook.com/nxtbooks/aogr/201312
http://www.nxtbook.com/nxtbooks/aogr/201311
http://www.nxtbook.com/nxtbooks/aogr/201310
http://www.nxtbook.com/nxtbooks/aogr/201309
http://www.nxtbook.com/nxtbooks/aogr/201308
http://www.nxtbook.com/nxtbooks/aogr/201307
http://www.nxtbook.com/nxtbooks/aogr/201306
http://www.nxtbook.com/nxtbooks/aogr/201305
http://www.nxtbook.com/nxtbooks/aogr/201304
http://www.nxtbook.com/nxtbooks/aogr/201303
http://www.nxtbook.com/nxtbooks/aogr/201302
http://www.nxtbook.com/nxtbooks/aogr/201301
http://www.nxtbook.com/nxtbooks/aogr/201212
http://www.nxtbook.com/nxtbooks/aogr/201211
http://www.nxtbook.com/nxtbooks/aogr/201210
http://www.nxtbook.com/nxtbooks/aogr/201209
http://www.nxtbook.com/nxtbooks/aogr/2012_pbios
http://www.nxtbook.com/nxtbooks/aogr/201208
http://www.nxtbook.com/nxtbooks/aogr/201207
http://www.nxtbook.com/nxtbooks/aogr/201206
http://www.nxtbook.com/nxtbooks/aogr/201205
http://www.nxtbook.com/nxtbooks/aogr/201204
http://www.nxtbook.com/nxtbooks/aogr/201203
http://www.nxtbook.com/nxtbooks/aogr/201202
http://www.nxtbook.com/nxtbooks/aogr/201201
http://www.nxtbook.com/nxtbooks/demo/aogr_clone
http://www.nxtbook.com/nxtbooks/aogr/201112
http://www.nxtbookMEDIA.com