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Strong
Activity
in a Mature Basin
Note for readers:
going forward, PTTC's prior Appalachian and Midwest regions
are now functioning as a combined Eastern Region. This
combination will realize synergies through working with
AAPG's Eastern Section and other groups. Only
a small percent of all the wells drilled in the Appalachian
Basin go below 7,500 feet. There are, however, significant
sediments below that depth. Although production is very
mature in the formations that are the historical mainstays,
many of those deeper horizons lie untested, forming an
attractive exploration target. This, combined with the
nature of the players also changing to more aggressive
exploration-oriented companies, means there is now strong
activity in the mature Appalachian Basin. Unconventional
resources are one target with industry bringing what they
have learned from the Barnett Shale and other shale gas
plays to bear on the Basin's Devonian-age shales.
The Marcellus Shale in Pennsylvania is one example. Range
Resources-Appalachia LLC (Range) has invested some $200
million on drilling, coring, seismic and science to apply to
the Marcellus. By the end of 2007, Range will have completed
some 15 horizontal wells in Washington County, southwest of
Pittsburgh. They are moving rapidly along the learning curve
and expect to soon move from exploration to the development
and exploitation phase. At 6,100 - 6,500 feet, the Marcellus
is somewhat shallower than the Barnett Shale, which means
costs should be lower once they are optimized.
The Huron Shale, also relatively shallow at about 6,000
feet, is another unconventional target. Cabot Oil & Gas
(Cabot) is involved in a horizontal drilling program for the
Huron in an area between Huntington and Charleston, WV.
Cabot has drilled five horizontals and plans to drill more.
They note good success, with fracturing going well and
drilling being repeatable. It's that repeatability that
becomes important as one moves to the exploitation phase in
a shale gas play.
There is also significant movement on the
coalbed methane front. Enervest Managing Partners Ltd. (Enervest)
has worked to improve fracturing for CBM wells in western
Pennsylvania. Enervest is also involved in a joint venture
with CDX Gas, drilling pinnate patterns in seams as thin as
four feet. |
Expectations are for some wells to produce
up to 1 Mmcfd. Range and Equitable Resources are involved in
a joint venture in the Nora Field in Virginia. Most wells
there are vertical, but there is one horizontal.
No discussion of exploration in the Appalachian Basin would
be complete without mention of the Trenton-Black River.
Development may have slowed somewhat—being a deep reservoir,
it is costly and drilling results are not uniform.
Nevertheless, significant potential remains. A few years ago
with support from DOE's National Energy Technology
Laboratory (NETL), the Trenton-Black River Appalachian Basin
Exploration Consortium was formed to merge the resources,
data and technical expertise of 17 exploration companies and
West Virginia University. The Consortium's report,
Geologic Play Book of Trenton-Black River Exploration
in the Appalachian Basin, incorporates regional
geologic, geochemical and geophysical data into a model that
can be used for exploiting the Trenton-Black River. The
report can be obtained on CD through NETL (www.netl.doe.gov
/publications/descriptions.html).
The boom in activity is not limited to the
unconventional arena—activity is also higher for the
traditional formations/plays. With stronger prices smaller
operators have increased their drilling, if they can get
rigs. The edges of existing fields are being pushed and
there is some pure wildcatting. Companies that once left the
basin are now returning in one form or another.
Supporting this increased activity, state
agencies in the Appalachian Basin have worked hard to make
O&G data readily accessible. Some of the systems/data
available are described in a prior Tech Connections column
(July 2007 in The American Oil & Gas Reporter
available online at
www.pttc.org/aogr_
columns/aogrcojuly07.
htm) and in a prior PTTC Network News (www.pttc.org/newsletter/
2qtr2007/v13n2p8.htm). A GIS-based system,
originally developed by PTTC's Appalachian Region and now
maintained by the Appalachian Natural Gas and Oil Research
Consortium at West Virginia University, provides one a
"quick look" at activity in the Trenton-Black River, coalbed
methane and horizontal well arenas. Looking
forward, the regional program continues to address the
exploration and exploitation needs of the Appalachian Basin.
Relevant workshop topics to look forward to include: The
Role of Fractures in the Devonian Black Shale, Shale Plays
and Completion Techniques, The Current State of Directional
Drilling in |
the Appalachian Basin, Carbonate Reservoirs,
and Structural Geology and Structural Gas Plays.
Portions of this article excerpted from "Improved
Technology, Deep Exploration Putting New Life In Old Basin,"
by Al Pickett, The American Oil & Gas Reporter,
November 2007, pp. 121-129. The remaining information was
drawn from other PTTC sources.
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