Antero Resources has surpassed 1 bcfd of net gas-equivalent (bcfed) production from the Marcellus and Utica shales and secured the gas processing and pipeline capacity needed to meet aggressive production growth targets.
Second-quarter production averaged 891 MMcfd of gas-equivalent (MMcfed), 14% liquids, and full-year output is on track to meet or exceed the company's projections of 925-975 MMcfed. Production is expected to increase by 45-50% in 2015 and 2016.
In the Marcellus shale, 15 rigs and six frac crews were at work in mid-July. Antero completed 70 Marcellus wells in the first half of 2014 with 30-day initial production rates averaging 12.9 MMcfed. It also added about 22,000 net acres to its Marcellus position, increasing its net leasehold to about 369,000 net acres.
In the neighboring Utica shale, the average 30-day initial production rate for Antero wells is 14.8 MMcfed, 47% liquids. The company had 23 producing Utica wells in mid-July, including 19 that were online for more than 30 days. Antero has two frac crews in the play and operates five rigs.
In the first half of the year, the company increased its Utica leasehold by 13,000 net acres to 119,000 net acres.
Antero has secured firm transportation and sales agreements for 1.4 bcfd of Marcellus and Utica production. Capacity is set to increase to 2.2 bcfd in 2015 and 3.4 bcfd in 2016. The company is working to reduce its exposure to Appalachian natural gas pricing; by 2016, it is positioned to direct 48% of its production to the Gulf Coast and 20% to the Midwest.
In addition, 600 MMcfd of cryogenic processing capacity has been secured at the MarkWest Sherwood facility in Doddridge County, W. Va. The company has signed agreements to increase its processing capacity at that facility to 1.4 bcfd by the third quarter of 2015.
Antero has placed 330 wells online in the Marcellus and Utica plays since 2009. In the first half of 2014, proved reserves increased 19% to 9.1 tcf of gas-equivalent, 13% liquids.
