Industry Supplier of the Year: Gary C. Evans of Magnum Hunter Resources Corp.
Posted on 10/03/2014 4:43:05 PM PDT by ckilmer
Industry Supplier of the Year: Gary C. Evans of Magnum Hunter Resources Corp.
So far, natural gas drillers have only dipped their toes into West Virginia’s Utica shale play. It’s safe to say some might dive in head first now.
Magnum Hunter Resources Corp. announced results of a well on its Stewart Winland pad in Tyler County, West Virginia, just east of Marietta. It’s a certified monster, the biggest in the Utica shale play so far and, the company says, one of the biggest in U.S. shale, period.
The 1300U well was placed in production last week, and produced 46.5 million cubic feet of natural gas a day.
Production from the Utica shale keeps expanding. This time, it’s south and east of its mainstay in eastern Ohio. A few weeks ago, Royal Dutch Shell Plc’s results in north-central Pennsylvania showed potential for the play even farther east and north.
Gary Evans, the CEO of Magnum Hunter, predicted the well’s success in June, as I reported.
“We think this well is on the equivalent of the Rice well,” Evans told CNBC host Jim Cramer. He was referencing Pennsylvania-based Rice Energy Inc., (NYSE:RICE) which at the time had the top-producing natural gas well, at 41.7 million cubic feet of natural gas a day, in Belmont County.
Magnum Hunter is an early adopter of tapping West Virginia’s Utica play. This well was only the second drilled in the state; Chevron Corp. (NYSE:CVX) drilled the first in Marshall County earlier this year.
The news is good for Houston-based Magnum Hunter (NYSE:MHR), which has 200,000 acres in the Utica and Marcellus plays in Ohio and West Virginia, 43,000 of which overlap in so-called “stacked pays,” of which the company also is an early adopter, as I reported last week.
“We believe that this new discovery on the Stewart Winland pad announced today represents the greatest flow rate and one of the highest sustained flowing casing pressures of any Utica well drilled in the entire play of Ohio and West Virginia,” Evans said in a statement, where he called the well a “monster.”
“Additionally, it is one of the highest flow rate gas wells ever reported in any shale play located in the U.S.,” he said.
One caveat on the well: It’s almost entirely dry gas. The well is about 98 percent methane and just 1.52 percent ethane. Ethane is the valuable liquid that Gulf Coast petrochemical facilities need and is leading to much of the pipeline activity taking fossil fuels from Appalachia to the Gulf Coast.
The company said three other wells on the Stewart Winland pad have tapped into the Marcellus shale play and are ready for sales.
I don't know the validity of their claims but according to radio ads, gold and silver are expected to go thru the roof too.........so buy today!
I read this and all I can think is about the stupid f**ks in New York State.
The 1300U well was placed in production last week, and produced 46.5 million cubic feet of natural gas a day.
This Utica play located in West Virginia.
I don’t know the validity of their claims but according to radio ads, gold and silver are expected to go thru the roof too.........so buy today!
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No man do do that. Big plays like this raise the value of the dollar and kill the price of gold and silver.
I read this and all I can think is about the stupid f**ks in New York State.
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New York State will get around to natural gas after their unions have sucked the state dry and the dems are kicked out of the state house. Its only a matter of time.
The logic of natural gas extraction is just too huge.
Flowtesters were challenged on this one.
I’ve worked on some that has a lot of pressure on the.
I thought Bigfoot fell into a well. What a disappointment.
Flowtesters were challenged on this one.
I’ve worked on some that has a lot of pressure on the.
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I’d love to know what you meant here.
Can you clarify your comment. Say it in a way that people unfamiliar with the industry would understand.
I’m guessing that you mean the gas was under a whole lot more pressure than drillers are accustomed to. So the people who drilled this well were tested to the limit to keep the well from blowing up in their faces.
Is that right?
Drill sideways from Pennsylvania, Ontario, and New Hampshire.
Or Vermont, or Connecticut - whichever is convenient. Which state is next to NY? 8<)
I thought Bigfoot fell into a well. What a disappointment.
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oh heck sorry about that. The language used is a pretty good gauge of how pumped the drillers are.
Keep playing that song!
“Big plays like this raise the value of the dollar and kill the price of gold and silver.”
The wife and I were stopped at a red light next to a gas station in Charlotte. Their sign read $3.19 for regular...the cheapest I’d seen around here in a LONG time. I mentioned the “$3.19” to my wife. Then I asked if she knew why it was $3.19, especially considering all the Mideast troubles. She said why? I said...”Because America is pumping so much oil.”
Makes me proud.
(I realize article is about natural gas.)
A great irony that fossil fuels are strengthening the economy despite the resistance by the fossil fools.
Wow! And wasn’t it announced last week that there’s been a big discovery in Utah?
Huh? Can you translate that for me?
Don’t buy gold when the dollar is rising.
This chart will show you the relationship between gold oil and the dollar.
http://www.macrotrends.net/1335/dollar-gold-and-oil-chart-last-ten-years
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