Penn Virginia Corp., Houston, is producing a combined 4,096 b/d of oil and 2,072 Mcfd of gas from six Eagle Ford shale wells in South Texas and is running three rigs in the play.
The associated gas is also expected to yield natural gas liquids of 150 bbl/MMcf of gas.
The initial well, the Gardner 1H, had a peak 24-hr production rate of 1,250 boe/d in late February and is still producing 350 b/d of oil and 240 Mcfd of gas after 129 days' production, bringing cumulative recovery to 68,000 bbl and 56 MMcf.
The gas was flared, but the company's midstream service provider in Gonzales County recently connected the wells to its pipeline and processing facilities and Penn Virginia has begun to recognize revenue from NGL and residue gas production.
Penn Virginia has completed five more wells, the Hawn Holt 1H, 2H, 4H, 6H, and 9H, that had peak 24-hr production rates of 726, 986, 560, 711, and 1,876 boe/d, respectively. These wells had corresponding peak 24-hr oil production rates of 650, 869, 514, 670, and 1,652 b/d.
The Hawn Holt 1H and 4H had subsequent increases in peak rates of production to 830 and 582 boe/d, respectively. The five new wells were tested at restricted rates with flowing pressures that ranged between 1,180 and 2,994 psi. The total horizontal lateral lengths ranged between 3,827 and 5,063 ft with 14-18 frac stages per lateral.
Penn Virginia is drilling three wells, and three others await completion.
The company has extended its agreement with a private service contractor to provide hydraulic fracturing services primarily in the Eagle Ford shale as well as other plays in East Texas and Oklahoma. This agreement has a 1-year term with an option to extend for more 1-year terms.
Meanwhile, Penn Virginia is still considering alternatives for its 35,000-acre position in the Marcellus shale in Potter and Tioga counties, for which it formally sought a joint venture partner or other alternative earlier this year.
Penn Virginia has drilled four horizontal wells in the play, which it calls capital intensive. Three wells are under test, and the fourth awaits completion. Three wells are in the central part of the acreage, and the fourth well is in the west. The company is moving a rig to test the eastern part in this year's second half. A pipeline is being built, and sales are expected to start in early August.
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