CONSOL’s Detailed 1Q13 Operations Update for Marcellus/Utica

On Friday, CONSOL Energy (CNX Gas) issued an operational update for the first quarter of 2013. CONSOL said they had a "strong" start to 2013 by drilling 14 new horizontal wells—12 of them in the Marcellus, and 2 in the Utica.

Here’s the portion of the update dealing their gas drilling operations which identifies not only what they did, but where they did and didn’t do it, and in the case of joint ventures, who they did it with:

Gas Division Operations

During the first quarter, CONSOL Energy had a strong start to its 2013 drilling program by drilling 14 horizontal Shale wells: 12 Marcellus Shale and 2 Utica Shale wells. The average drilled lateral length for the Marcellus Shale wells and the Utica Shale wells was 5,838 feet and 6,111 feet, respectively. CONSOL initiated completion operations on 17 wells consisting of 274 frac stages during the quarter. In the Marcellus Shale, 13 wells, consisting of 207 frac stages on two separate well pads, were completed, or are currently underway. In the Utica Shale, four wells, consisting of 67 frac stages, were completed on three separate pads in the first quarter. Production results for the new drilling and completion activity is just getting underway. CONSOL expects to report results in subsequent quarterly releases.

The following significant events are expected to take place in the second quarter: completion activities on CONSOL’s first horizontal Upper Devonian well, the NV 39F; multiple productive wells turned-into-line at North Nineveh in Southwest Pa.; the completion of an additional multi-well pad in Central Pa.; drilling a six-well pad in the Philippi Field in West Virginia; and CONSOL’s first Utica Shale multi-well pad that is located in Mahoning County, OH.

Marcellus Shale Dry Gas (CONSOL Energy-operated):

Southwest Pa.: During the first quarter, CONSOL drilled seven wells: the fourth and final well on the MOR 20 pad in the Morris Field in Greene County and the final six wells on the NV 36 pad in Washington County. The seven wells ranged in lateral lengths from 2,843 feet to 8,006 feet. Of particular note, 99.97% of the combined lateral lengths of the seven wells were drilled within a 10 foot target zone, within the lower Marcellus Shale. Completion and flowback results from the North Nineveh Field, which extends the successful Nineveh Field northward into Washington County, Pa., have started to come in at the end of the first quarter. Early results indicate that the North Nineveh wells will be as productive, if not more productive, per foot of lateral compared to the original Nineveh wells, which average 1.1 MMcf/d per 1000 feet of lateral during their first 60 days of production and 1.7 Bcfe expected ultimate recovery per 1000 feet of lateral. Also, some of the North Nineveh wells have the added advantage of minor condensate production. During the first quarter, five wells and 61 stages were completed on the NV 41 pad, and the eight-well NV 42 pad with 146 stages is currently underway. All of the North Nineveh Field wells will be immediately turned into the sales pipeline upon completion of flowback. Also, at least one frac crew will be continuously working in North Nineveh during the first three quarters of 2013 to complete the backlog of 5 pads from 2012, which were delayed due to obtaining centralized impoundment permits during the second half of 2012.

In Southwest Pa., CONSOL has one horizontal rig operating and plans to drill an additional 16 wells throughout the remainder of 2013.

Central Pa.: Within the Central Pa. district, CONSOL drilled all five wells during the first quarter at the Kuhns 3 pad in the Mamont Field, located in Westmoreland County. The lateral lengths ranged from 4,768 feet to 10,684 feet. No wells were completed in Central Pa. during the first quarter. Completion work is expected to begin late in the second quarter on the five Kuhns wells and on the four-well Bowers pad located in southern Jefferson County, which is located at the northern end of CONSOL’s Central Pa. leasehold.

CONSOL Energy does not currently have any horizontal rigs drilling in Central Pa.

Northern W.Va.: CONSOL did not drill any wells in West Virginia during the first quarter. One horizontal rig is currently mobilizing from Mamont Field to drill the six-well Philippi 13 pad in Barbour County. The Philippi 13 wells are expected to have an average lateral length of approximately 8,200 feet. After drilling the Philippi 13 pad, the company plans to drill a single well at the delineation pads in the Audra Field in southern Barbour County and the Century Field in northern Upshur County to test the productivity of CONSOL’s extensive leasehold between the Philippi Field and the Alton Field in southern Upshur County. CONSOL expects to begin the completion work for all eight wells in the third quarter.

Marcellus Shale Wet Gas (Noble Energy-operated):

In the wet gas portion of the Marcellus Shale, Noble Energy (NYSE: NBL) drilled thirteen wells during the first quarter. Twelve of the thirteen wells were drilled in Marshall County, W.Va.: the final well of the eleven-well WEB 4 pad; seven wells on the eleven-well SHL 8 pad; and four of the seven wells on the WFN 1 pad. Also, Noble Energy drilled one of the six wells on the NORM 1 pad located in Gilmer County.

Completion operations have commenced on the eleven-well WEB 4 pad where 106 of 228 frac stages, and five of the eleven wells, have been completed. Noble Energy expects the WEB 4 wells to be on-line by the end of the second quarter.

Noble Energy is currently operating three horizontal rigs and expects to add a fourth rig during the second quarter. Noble Energy expects to add two more rigs later in the year to support drilling a total of 85 wells in the Marcellus Shale wet gas area in 2013.

Ohio Utica Shale (CONSOL-operated):

In the Utica Shale joint venture with Hess Corporation, CONSOL Energy drilled the first two of three wells on the NBL 11 pad in Noble County: The Noble 11A and 11B with a lateral length of 6,236 feet and 5,986 feet, respectively. Drilling is ongoing at the Noble 11C well.

During the first quarter, completion work was finished at the MAH 2A well, located in Mahoning County, where the 2,785 foot lateral, with nine frac stages, tested at a 24-hour flow rate of 1.4 MMcf/d and 240 barrels of oil/day after a 60-day shut-in period. Also, the 7,568 foot TUSC 8A well in Tuscarawas County was stimulated with 24 stages and shut-in for 60-days for frac water dissipation. Flowback operations are expected to begin in late April and results will be reported at the end of the second quarter. CONSOL’s first multi-well pad in the Utica Shale was recently completed at the two-well MAH 7 pad where the 5,411 foot lateral MAH 7A well and 5,290 foot MAH 7C well were stimulated in 18 and 16 frac stages, respectively. Both wells are currently shut-in for frac water dissipation and flowback is expected to begin late in the second quarter.

CONSOL currently has two horizontal rigs drilling in the Utica; however, one rig will be released after drilling the third and final well at NBL 11, which is expected to take place within the month. Thereafter, CONSOL will operate one rig in the Utica to drill the three-well NBL 33 pad, followed by the three-well NBL 19 pad, and then the five-well NBL 18 pad, of which the first two wells are expected to be drilled in 2013. CONSOL expects to drill eleven wells, all in Noble County, during 2013.

Ohio Utica Shale (Hess-operated):

Our joint venture partner, Hess Corporation (NYSE: HES), drilled one well during the first quarter, the Cadiz A 1H-23 in Harrison County and is currently drilling JV wells at the Oxford A 2H-8 in Guernsey County and the Athens A 2H-24 in Harrison County.

Stimulation operations were completed at the 15 stage Jeffco 1H-6 well in Harrison County, which tested at 7.4 MMcf/d with flowing tubing pressure of 3,882 psi. The Cadiz A 1H-23 well was completed with 22 stages. Drillout and flowback operations are currently underway prior to a planned 90-day shut-in period for frac water dissipation.

In the Utica Shale, Hess finished the first quarter with two horizontal rigs operating on JV acreage and plans to drill 16 joint wells during 2013.*

    For the full press release which includes details of CONSOL’s coal operations, click the link below.

      *CONSOL Energy (Apr 12, 2013) – Consol Energy (CNX) Reports Strong Q1 Coal Sales; Updates on Several Ops

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