Range Resources Corp. kicked off the Enercom conference in Denver on Aug. 13, providing “very encouraging” results on its second well in its super-rich Upper Devonian play.
The well tested at a 24-hour rate of 6.6 million cubic feet equivalent/day (MMcfe/d), significantly better than the company’s first test of 1.9 MMcfe/d. Range attributed the higher rate to improved lateral placement and suggested that, over time, well costs would trend down in line with its marginally deeper Marcellus wells. Range drilled eight super-rich Marcellus wells in 2010 and 2011 at a cost per well of $4.7MM.
In addition, Range provided data on several of its other plays. In the dry gas play of southwest Pennsylvania, the company provided a type curve for the first time with an estimated ultimate recovery (EUR) of 7.5 Bcf at a cost of $4.0MM per well.
In the Utica/Point Pleasant play Range is drilling its first well, which is due to be completed in September. In the horizontal Mississippian, Range has an acreage position that, on 50-acre spacing, would allow for up to 3,000 potential wells. The horizontal Mississippian and the super-rich Marcellus, its two higher rate of return plays, are the only ones in which Range has commitments to drill to hold acreage, the firm said.
In midstream marketing, Sunoco announced a 30-day open season for the Mariner East pipeline project, which is designed to carry propane and ethane from western Pennsylvania to the Marcus Hook terminal in Philadelphia. Although it is not expected to be in service until the second half of 2014, Range is currently able to send product into Marcus Hook using truck and rail. Elsewhere, with its Mariner West and ATEX Express projects, Range has the potential to grow its Marcellus wet gas production by 900 MM/d, from its current 390 mm/d to 1.3 Bcf/d, while still meeting pipeline quality standards.
Contact the author, Christopher Sheehan, at csheehan@hartenergy.com.
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