American Oil and Gas Reporter - November 2022 - 81

Reiley reported. This included the G.C.
Pemberton No. 2 " well in a lake. " She
said that compliance issues included well
sign posting, tank pit maintenance, sites
debris and vegetation, and the need to
bury flow lines and submit paperwork.
Several operators voiced concerns about
getting production data and suggested the
division could save staff time if it focused
on publishing purchaser production data
before producer production data.
Plenty Of Potential
Adam Null, vice president and manager
of consulting services for Wright & Company
Inc. Petroleum Consultants, was
among the highlights of the oil and gas
break-out session with a talk titled, " Sustainable
and Responsible Development
of Resources remaining in Appalachian. "
His presentation focused on production
from the Marcellus, Utica, Point Pleasant
and Upper Devonian horizons. Even with
a long history of extensive drilling and exploration
activity from Pennsylvania south
through Tennessee, Null said, a great deal
of future development potential remains.
He reported that in February 2022, the
U.S. Energy Information Administration
estimated that Appalachian region output
would grow by 0.3 billion cubic feet a
day in 2022 and 0.7 Bcf/d in 2023. " In
order to accomplish this, operators may
need to drill about 850 wells in 2022 and
850-900 wells in 2023, " EIA maintained.
According to Wright, as of June, only
362 of the 850 wells needed to meet EIA
predictions had been drilled. As an update
for October, there are approximately 670
wells in progress and producing wells
that have been spudded in 2022. According
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CODE, FOR THE AMERICAN OIL & GAS REPORTER,
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WITH DATE OF FILING SEPTEMBER 30, 2022.
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or general business office of the publishers: 1326 East
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to Wright, there is amble acreage to add
many wells every year and still be in
" core/sweet spots. "
Null concluded by reminding the audience
of the growing emphasis on environmental,
social and governance considerations.
He pointed out that the federal
Securities and Exchange Commission
had proposed new guidelines for ESG
investing with new disclosure rules, and
observed that some banks, private equity
firms and investment groups had decreased
their fossil fuel investments. Nevertheless,
he observed, there also has been pushback
from other financial institutions and some
states, including Texas, West Virginia
and Tennessee.
He also pointed out there was new
pressure for all industries to understand
their impacts on the world. Nevertheless,
uncertainty continues to shroud the future
of regulations and the pace at which ESG
measures will be implemented, Null added.
He warned that, in some cases, sustainability
reporting and implementation
of ESG-related policies and procedures
may be costly, but the cost of not acting
will be higher, especially once regulatory
guidance on reporting is in place.
Scott Gilbert, consulting geologist and
TOGA past president, concluded the oil
and gas break-out session with a presentation
titled, " Cumulative Gas Production
from Tennessee Horizontal Shale Wells, "
which noted 78 horizontal shale wells
were drilled in Tennessee between March
2010 and June 2013.
According to Gilbert, most of these
wells were drilled by Knox Energy and
Atlas, with five being drilled near the
Kentucky border by Magnum Hunter.
Total number copies (net press run), average number
copies each issue during preceding 12 months: 11,583.
Number of copies of single issue published nearest to filing
date: 10,700 (August 2022). Average number of
copies, outside county paid/requested mail subscriptions,
during preceding 12 months: 10,123. Number of copies,
outside county paid/requested mail subscriptions, single
issue published nearest to filing date: 9,819. In-county average
number of nonrequested copies each issue during
preceding 12 months: none. In-county paid/requested mail
subscriptions, number of copies of single issue published
nearest to filing date: none. Sales through dealers and carriers,
street vendors and counter sales, and other paid or
requested distribution outside USPS, average number of
copies each issue during preceding 12 months: none. Sales
through dealers and carriers, street vendors, counter sales
and other paid or requested distribution, number of copies
of single issue published nearest to filing date: none. Sales
through other classes of mail through the USPS average
number of copies each issue during preceding 12 months:
none. Sales through other classes of mail through the
USPS, single issue published nearest to filing date: none.
Sales through other mail classes through the USPS during
the preceding 12 months: none. Requested copies distributed
by other mail classes through the USPS, in single
issue published nearest to filing date: none. Total paid
and/or requested circulation, average number of copies
each issue during preceding 12 months: 10,123. Number
of copies of single issue published nearest to filing date:
9,819. Total nonrequested distribution, outside-county, avKnox
Energy drilled the first horizontal
on fluid because it had used that technique
in the Marcellus. However, the Marcellus
is over-pressurized, while the Chattanooga
Shale is under-pressurized. The underpressured
formation caused the first well
to lose circulation in naturally fractured
zones in the shale.
Subsequent wells were drilled with
air, Gilbert noted. The use of heavyweight
drill pipe above the bit allowed the laterals
to be straight and extend longer, he
pointed out.
According to Gilbert, cumulative production
from these horizontal wells ranged
from 943 MMcf over 13 years to a low
of 40 MMcf over 11 years, with an
average of 251 MMcf a well and a total
production of 20.33 billion cubic feet.
Annual production from horizontal wells
ranges from 300 MMcf to 500 MMcf.
Gilbert concluded that these wells
would produce gas for decades at an
annual decline of less than 5%, with the
best wells producing more than 1 Bcf-2
Bcf over several decades. This will generate
$5 million-$10 million at $5/Mcf
net, he calculated. " The economic feasibility
of these wells depends upon drilling
cost and wellhead price of gas and both
are going up, " he observed.
The convention wrapped up on Tuesday,
Oct. 4, with a final session in which
leaders from both groups expressed appreciation
for the combined event and
recommended its continuation in the future.
Laine predicted a lot would happen
with fossil fuels in the next 12 months.
" That might work out, " he considered.
" We may really need to get together next
October to circle our wagons. "
❒
erage number of copies each issue during preceding 12
months: 1,160. Actual number of nonrequested distribution
by mail copies single issue nearest to filing date: 581.
Copies of in-county nonrequested copies distribution, average
number each issue during the preceding 12 months:
none. Number of in-county nonrequested copies distribution,
single issue published nearest to filing date: none.
Nonrequested copies distributed through USPS by other
classes of mail, average number during preceding 12
months: none. Nonrequested copies distributed through
USPS by other classes of mail, single issue published nearest
to filing date: none. Number of nonrequested copies
distributed outside the mail during the preceding 12
months: none. Number of nonrequested copies distributed
outside the mail, issue published nearest to filing date:
none. Total nonrequested distribution, average number of
copies each issue during preceding 12 months: 1,160. Actual
number of nonrequested distribution by mail copies
single issue nearest filing date: 581. Total distribution, average
number of copies each issue during preceding 12
months: 11,283. Actual number of copies of single issue
published nearest to filing date: 10,400. Average number
of copies not distributed, each issue during preceding 12
months: 300. Actual number of copies of single issue published
nearest to filing date: 300. Total, average number
copies each issue during preceding 12 months: 11,583;
percent paid and/or requested circulation, 90%. Actual
number of copies of single issue nearest to filing date:
10,700; percent paid and/or requested circulation, 94%.
Signed by Angie M. Lubbers, Comptroller.
NOVEMBER 2022 81
American Oil and Gas Reporter - November 2022

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