Warren Resources tests Upper Marcellus wells
Warren Resources Inc., New York, reported two of its Upper Marcellus wells produced a combined 17 MMcfd during 2 weeks with 3% of flowback load recovered.
The wells were drilled and pipe set from Warren's Mirabelli and Ruark pads in Wyoming County, Pa., that Warren Resources acquired last year (OGJ Online, July 7, 2014).
Warren Resources said the Upper Marcellus was 180-ft thick compared with the Lower Marcellus in the same area measuring 120 ft. Offset Lower Marcellus wells were monitored during fracturing, and no communication was documented with the Upper Marcellus.
Executives said a successful test of the Upper Marcellus could add more than 40 additional drill locations to Warren's acreage. No reserves were booked by Warren at yearend 2014 for the Upper Marcellus.
"Warren's first two Upper Marcellus wells were drilled with the intent to test a wide swath of our acreage block," said Lance Peterson, Warren's interim chief executive officer. "We expect to see these wells continue to clean up and experience increased flow rates."
Warren also noted it has pipeline systems and pads already in place to support drilling of additional wells in the Upper Marcellus.
Chesapeake lowers Marcellus output
Chesapeake Energy Corp. reports its Marcellus net production averaged 820 MMcfd during the second quarter, a 1% decrease since the independent began voluntarily curtailing 300 gross MMcfd of Marcellus production in the first quarter.
Citing weak gas prices and also pipeline constraints, Chesapeake increased curtailments in the second quarter to 500 gross MMcfd.
Chesapeake anticipates maintaining Marcellus curtailments for the remainder of the year, and it plans an operated rig count of 1 in the play, which is down from 6 a year ago.
The 2015 first-quarter average completed Marcellus well cost $7.5 million with an average completed lateral length of 6,900 ft and 28 frac stages, Chesapeake said. That compared with its full-year 2014 average completed well cost of $7.5 million with an average completed lateral length of 6,000 ft and 27 frac stages.
Chesapeake has recently completed a Marcellus well at under $6.7 million, executives said during an Aug. 5 earnings calls.
FERC seeks comments on Atlantic Coast Pipeline
The US Federal Energy Regulatory Commission in August sought comments from landowners who potentially might be affected by newly identified routes for the proposed Atlantic Coast Pipeline (ACP)to move natural gas from the Marcellus and Utica shale plays across three states.
In particular, FERC asked about possible environmental impacts in West Virginia, Virginia, and North Carolina. The agency sent an Aug. 5 notice to federal, state, and local government agencies, Indian tribes, environmental and other public interest groups, and others. The comment period closed Sept. 4.
Sponsors of the proposed 550-mile, 1.5-bcfd pipeline identified several alternate route segments in Augusta and Nelson counties, Va., as potentially having the least impact to environmental, historic, and cultural resources (OGJ Online, May 19, 2015).
FERC's staff planned to prepare an environmental impact statement for the proposed pipeline based in part on comments received.
Landowners were advised that an ACP representative might contact them already if their property would be affected by one of the new route segments under consideration.
Some landowners might not be contacted if the alternative across their property is found to be either not feasible or not environmentally preferable to other alternatives being considered, the notice continued.
"If the Commission approves the ACP Project, that approval conveys with it the right of eminent domain," it said. "Therefore, if easement negotiations fail to produce an agreement, the pipeline company could initiate condemnation proceedings where compensation would be determined in accordance with state law."
Magnum Hunter names VP, COO
Magnum Hunter Resources Corp. appointed Keith Yankowsky as executive vice-president and chief operating officer, effective Sept. 1. He will report directly to Gary C. Evans, chairman and chief executive officer.
Yankowsky has more than 28 years of engineering experience-including operations, drilling, and completions-within large independents. Previously, he served since 2013 as vice-president of Chesapeake Energy Corp.'s Appalachia South business unit.
During his 9-year tenure at Chesapeake, he also was vice-president of engineering technology and special projects, and supervised various engineering and operational functions related to horizontal drilling and fracturing within the Marcellus and Utica shale plays.