National Fuel Gas Co., a subsidiary of Seneca Resources Corp., Williamsville, NY, said it produced 120.7 bcf of gas equivalent in the fiscal year ended Sept. 30, 45% more than the previous fiscal year, and that its proved gas and oil reserves are up 24% to a record 1,549 bcf of gas equivalent.
Fourth quarter production of 28.9 bcf, up 42% despite nearly 3 bcf of price-related shut-ins, was driven by the continued success of Seneca’s Marcellus shale development program in Lycoming County, Pa.
Growth in crude oil production was limited mainly as a result of a continued constraint in a third-party pipeline used to transport associated natural gas production in Sespe field. This is expected to be resolved by the end of January 2014. Oil reserves were 41.6 million bbl, down 3% due to production.
In delineation efforts in the Western Development Area, Seneca in the quarter tested two more Marcellus shale wells in the Owl’s Nest area of Elk County, Pa. Both used a reduced cluster spacing completion design and achieved 24-hr peak production rates of 6.1 and 3.4 MMcfed.
The second well was completed using linear gel to place larger proppant near the wellbore. Seneca believes longer laterals and standard RCS completion design are more representative of expectations for this area. Both wells are shut-in awaiting connections.
On DCNR Tract 100 in Lycoming County, Seneca brought a new five-well pad on line. The wells achieved 24-hr peak production rates ranging from 14.8 to 22.1 MMcfd. In its first 30 days, the pad produced 2.3 bcf of gas.
In the Utica shale, Seneca tested a dry gas well at its Mount Jewett prospect area in McKean County, Pa. This well had a treatable lateral length of 5,777 ft and was completed using 38 RCS stages. The 24-hr peak production rate was 8.5 MMcfd, and the well averaged 6.8 MMcfd in 7 days.