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Jordan Blum, editorial director, Hart Energy: We are here at Hart Energy's DUG Appalachia Conference in Pittsburgh. I'm joined by Ryan Deaderick, the executive vice president and COO of Greylock Energy. Thank you so much for joining us. You all are West Virginia based. Can I get you to elaborate on the activity levels, trends and what you all are working on there in Pennsylvania and throughout the region?
Ryan Deaderick, executive vice president and COO, Greylock Energy: Yeah, absolutely. Great to be here with you, Jordan. So we are actually based in headquartered in Charleston, West Virginia, but here in the last 18 months we've actually moved into sort of a national position. So we have Appalachia and Rockies’ assets now. So as we look at our development plan, things have changed for us a little bit because we can both develop in Appalachia. Southwest, Pennsylvania is where we've predominantly been developing, but we actually have wells in 49 counties across Appalachia, and then we also have some prospects in the Rockies.
JB: Are you all focused more on growth now in the Appalachia region or more Rockies? Or simultaneously?
RD: Honestly, for us, we are always looking for diversity of investment and so being able to both invest in Appalachia and in the Rockies allows us to create our own natural hedge on price. We get a different price basis in the Rockies than we get in Appalachia. We have a great acreage position here and a lot of scale here in Appalachia. So we love the flexibility.
JB: With that scale you mentioned, how are you all doing in terms of, as we say, the core acreage and maybe more companies moving to tier two levels?
RD: That's a great question. We still have what we would consider some legacy or older core acreage, but it is drying up. I think anyone that says otherwise is exaggerating, so I wouldn't be surprised in these next three, four or five years, if a lot of the areas that have seen most of the activity in Appalachia, those are just going to be the producing assets and the rigs will be moving to counties that probably aren't used to that activity. I know one of the tests, which I won't talk about in front of the guys today, but we're going to test the Utica next year. That's a little bit outside the fairway when it's previously been developed. So it would be kind of that tier two acreage where we're just going to put our toe in that water.
JB: Any new experiments with different drilling lateral lengths, completion methods?
RD: Many people have probably seen our well pad, right as you enter Pennsylvania from West Virginia. Right above the rest area there is what we've called our Wildcat pad. We're going to put 17 wells when it's all said and done on that pad. We're going to have 14 producing in the first quarter next year. And so one of the things we've really tried is minimum surface disturbance and trying to maximize the use of our infrastructure that we're building. And so we're packing a bunch of wells and I think once it's all said and done, that pad will be about 150,000 lateral ft. of Marcellus producing off of one spot. So we love the efficiencies that come from long laterals, big kick outs.
JB: Thank you so much for joining us here at the DUG Appalachia Conference. To read and watch more, please visit online at hartenergy.com.