American Oil and Gas Reporter - November 2021 - 50

Capital bought assets of Energy Corporation
of America, the Charleston, W.V.based
company has more than 4,000 Appalachia
wells on 900,000 acres in eastern
Kentucky, West Virginia and Pennsylvania.
Although most wells are conventional,
dry gas from the Marcellus accounts for
85% of current output, Mork remarks.
In Pennsylvania, where Greylock has
about 110,000 acres, the company has
expanded through initial leasing, acquiring
acreage where leases have termed
out, and through trades, he says. The
company seeks new opportunities to add
acreage and upstream and midstream
operations over the next five to six years,
Mork adds.
" While our team does a great job of
operating the core business and executing
that base plan, we are also highly active
in the acquisition and divestiture market
looking for opportunities to scale the
business, " he says.
Meanwhile, Greylock continues on a
steady pace of drilling up to 10 unconventional
wells a year and operate within
cash flow without having to source a lot
of incremental capital, Mork explains.
Greylock is drilling longer laterals and
pumping more sand per lateral foot. While
lateral lengths beyond 10,000 feet are desirable,
more complex geology and diffuse
mineral acreage ownership can limit lengths
to 8,000 or fewer feet, he explains.
Frac designs average between 2,500
and 3,000 pounds per foot on 200-foot
stage spacing. EURs include an estimated
2 Bcf per 1,000 feet of lateral and total
reserves of about 600 Bcf. The company's
net gas production is a little over 100
MMcf/d, Mork says.
From Greene County, Pa., Greylock
is able to ship its gas to Columbia, Dominion
and Texas Eastern pipelines, Mork
points out.
The company continues to focus on
reducing emissions, and has been able to
reduce methane and total GHG intensity.
" Just operating dry gas wells is helpful,
but we continue over time to look at ways
we can reduce any potential emissions, "
Mork details. "" Obviously, with a dry
gas system, any lost methane is lost revenue.
It is to our benefit, both financially
and environmentally, to ensure we do not
have preventable methane leakage. "
Consistent Performance
Higher gas prices are a bonus, but
Northeast Natural Energy continues to
focus on a consistently performing drilling
and completion program to drive returns
in its operations on 500,000 gross Marcellus
acres in Monongalia and Marion
counties of West Virginia, says founder
and CEO Mike John.
" Our mantra is about controlling costs
and maintaining the efficiency that we
have now around essentially a one-rig
operation, " says John, a West Virginia
native who launched Northeast in 2009.
Backed by Metalmark Capital, the
Charleston-based company is drilling
20-24 wells a year on a position that
straddles two active gathering systems
with access to Texas Eastern. Current
takeaway capacity is accommodating
400 MMcf/d from 112 wells. The completion
of the MVP Pipeline next year
will provide even more marketing flexibility,
John offers.
The company continues to gain efficiencies
through longer laterals, now averaging
about 18,000 feet, with well costs
averaging $650/lateral foot on 10-well
50 THE AMERICAN OIL & GAS REPORTER
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American Oil and Gas Reporter - November 2021

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