The Daily Digger is dedicated to being your one-stop location to find all of the latest news and updates on the activity in the nationwide shale play, as well as relevant updates regarding the energy industry in general.
Rice Energy Finds Dry Gas Success in the Utica Shale
Rice reported continued drilling success in the dry gas Utica play.
Two new wells are performing in line with the first well, the Bigfoot 9H. The Bigfoot is outperforming initial expectations.
The company provided a type curve for the play.
Firm transportation remains a critical component of the growth plan, with FT costs making a big dent in drilling returns.
Two New Wells Confirm Success In The Utica's Dry Gas Window
Rice Energy (NYSE:RICE) provided a performance update for its first operated dry gas Utica well located in Belmont County, Ohio, the Bigfoot 9H. As a reminder, the well tested in June of this year with an initial rate of ~42 MMcf/d from a ~7,000-foot lateral with 40 frac stages and was placed into sales during the second quarter.
The Bigfoot's performance is beating initial expectations. The well has been producing on a restricted choke program for five months at a flat rate of ~14 MMcfe/d. To date, the Bigfoot has cumulatively produced approximately 2.0 Bcfe and continues to flow at 14 MMcfe/d. Most importantly, the well's average pressure decline has been approximately 11 psi/d, which is better than the initial 12.5 psi/d "High Case" model and may indicate a higher production trajectory over time (slide below). Rice's updated High Case for the well suggests cumulative production from the well over the first 18 months online of ~7.3 Bcf. This would put the well at par with some of the best wells drilled in the Marcellus dry gas sweet spot in Susquehanna County of Pennsylvania.
Climate change has been an ongoing topic in the past years and one of the main topics covered during the presidential campaign by then-presidential candidate Joe Biden. He had threatened to remove all fracking sites to reduce carbon emissions to zero. Of course, towards the end of the presidential campaign, Joe Biden became less hostile towards the fracking industry and devised a more reasonable way of reducing carbon emission. On Monday, at least 10 chief executives from major U.S. oil companies (Exxon Mobil Corp., BP Plc, ConocoPhillips, Royal Dutch Shell Plc, Chevron Corp, and Devon Energy Corp) have decided to collaborate with the Biden administration in its campaign against climate change. White House National Climate Adviser Gina McCarthy has stated that oil industry leaders promised support for federal regulations. The main focus being limiting emissions of methane from wells and other oilfield equipment. This is the first step in a list of carbon-cuttin
In the United States, there are seven main Shales (Bakken, Niobrara, Permian, Eagle Ford, Haynesville, Marcellus, and Utica). The Permian and Eagle Ford Shale, located in Texas, are the highest producing Shales in the United States. Among all of them, the Utica Shale seems to be the one with less popularity despite bringing many investments and job opportunities for Ohio. In today's post, we will discuss why the Utica Shale is under-appreciated and how it has benefited Ohio. Marcellus Shale Perhaps one reason why the Utica Shale is under-appreciated is that it's located right next to the Marcellus Shale. The latest report estimates that the Marcellus Shale yields about 14.4 billion cubic feet of natural gas per day. In 2015, it was the source for over 36% of the shale gas produced in the United States and 18% of the total dry gas production of the United States. Of course, the Utica Shale is small in comparison to the Marcellus Shale. Despite that, the Utica Shale still holds s
Chesapeake Energy continues to see its legal battles compound over its royalty-payment practices. Already facing lawsuits in several different states and having been subpoenaed by the U.S. Department of Justice, StateImpact Pennsylvania reports that another government outfit is taking a legal interest in the company's royalty payment strategies: Chesapeake Energy has been subpoenaed by the U.S. Postal service, seeking information on its royalty practices, according to a regulatory filing. As StateImpact Pennsylvania has previously reported , the Oklahoma City-based driller faces a slew of disputes and complaints over how it pays royalties. We've posted articles in the past that looked at some of the questionable practices that Chesapeake has employed to reduce the amount of royalties it pays out to landowners. As a quick refresher, note how ProPublica reporter Abrahm Lustgarten shared some of the details in an article which we shared here on The Daily Digger in March