Southwestern Energy’s Board Changes, Marcellus Plans for 2014
Some fairly big news from one of the Marcellus Shale’s largest drillers–Southwestern Energy. In a flurry of announcements issued yesterday, we learn that Southwestern’s President & CEO, Steve Mueller, will take over as Chairman of the Board next May when current Chairman Harold Korell retires. Mueller plans to keep the title of CEO but apparently he will shed the title of President, so that begs the question, who will become Southwestern’s new president next year? Interestingly (perhaps related?) Southwestern also announced yesterday the promotion of Jeffrey Sherrick to the position of Executive Vice President for Corporate Development. Hmmm.
In addition to personnel announcements, Southwestern issued a guidance statement about their plans for capital spending in 2014. The statement indicates Marcellus production will increase by a whopping 60% next year. Southwestern’s estimated Marcellus production for 2013 is 148-149 billion cubic feet (Bcf). Next year they expect it will be 244-249 Bcf based on superb well performance in Bradford, Lycoming and Susquehanna counties. Southwestern boasts that one of their Susquehanna County wells achieved an initial production of 32 million cubic feet per day! In 2014 Southwestern plans to begin drilling in three additional northeastern PA counties…
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Cabot Oil & Gas continues to exceed expectations and, well, impress just about everybody! Yesterday Cabot issued an operations update. Among the highlights: They’ve just completed a 10-well pad in Susquehanna County (dry gas portion of the Marcellus). Calling it, “the new standard for operational efficiencies and technological advancement,” Cabot said the 10-well pad was completed with 170 frac stages and had a combined peak production rate of a huge 201 million cubic feet (Mmcf) per day. That’s an average of 20.1 Mmcf/d per well for all 10 wells! This is exciting stuff folks.
Is there an issue on which both anti- and pro-drillers can agree? Is there ever a time both sides can sit at the same table and discuss a potential problem, and do so without hyperbole and snarky comments? Is there an issue over which both sides can talk and not have it end in shouting? Indeed there is–and it is the issue of air pollution. MDN realizes we’re on shaky ground with our industry friends by writing this, but on several occasions we’ve pointed out there is a growing body of evidence that shows a marked increase in air pollution in heavily drilled areas–mostly from compressor plants, but also from drilling rigs, truck traffic, etc. (see 
This has to be a record for the Marcellus… The Pennsylvania court had ordered an auction of various parcels of land in Susquehanna and Bradford counties (in the prolifically productive northeastern “dry gas” portion of the Marcellus). There were 222 acres of land in total located in prime Marcellus drilling country. An auction was held on Oct. 30 in Wysox, PA and the land was all sold–to various buyers from across the country. Here’s the kicker: Some of the land sold for $16,700 per acre! This is rural farm land folks, not prime real estate in the middle of downtown. The money paid was not for a gas lease but the new owners get mineral rights with the land. You know the land was purchased in hopes of turning around and leasing it for Marcellus drilling. We don’t know for sure, but some of the land may even have been purchased by drilling companies (time will tell).
Who doesn’t like a Top 10? We have one for you: What are the Top 10 producing Marcellus Shale wells in Pennsylvania? Would it surprise you to learn that 8 of the top 10 wells are found in a single PA county, drilled by the same driller?