Warren Resources Inc. (WRES) announced Aug. 18 initial results from well completions in the Upper Marcellus Formation, located within its acreage block in Wyoming County, Pa.
Warren said in the release it successfully drilled and set pipe for two Upper Marcellus wells in the first quarter of 2015, and completion operations commenced in July.
The two Upper Marcellus wells have been flowing back for about two weeks and the current combined daily production rate is 17 million cubic feet per day (MMcf/d) with 3% of flowback load recovered. The wells are drilled from Warren's Mirabelli and Ruark pads.
Warren's drilling and completion efforts highlighted some attractive features of the Upper Marcellus Formation in its acreage block. It is 180 feet thick, compared to the Lower Marcellus in the same area measuring 120 feet in thickness.
Offset Lower Marcellus wells were monitored during fracturing operations and indicated no communication with the Upper Marcellus.
The company said it expects production rates and reserves associated with these wells will be 100% accretive.
The New York company's first two Upper Marcellus wells were drilled with the intent to test a wide swath of its acreage block, said Lance Peterson, Warren's interim CEO, in a statement.
"Warren is very encouraged by the early results from these wells, and we expect to see these wells continue to clean up and experience increased flow rates," Peterson said. "Our 'core of the core' acreage position in the Marcellus continues to provide significant growth opportunities for the company and deliver value for Warren's shareholders."
A successful test of the Upper Marcellus could potentially add more than 40 additional well locations on Warren's acreage block, according to the release. No reserves were booked at year-end 2014 for the Upper Marcellus locations.
In addition, Warren has pipeline infrastructure and pads already in place to support the drilling of additional wells in the Upper Marcellus. According to the release, this eliminates time consuming infrastructure projects, and provides economic returns at lower realized gas prices.
Recommended Reading
NOG Closes Utica Shale, Delaware Basin Acquisitions
2024-02-05 - Northern Oil and Gas’ Utica deal marks the entry of the non-op E&P in the shale play while it’s Delaware Basin acquisition extends its footprint in the Permian.
Vital Energy Again Ups Interest in Acquired Permian Assets
2024-02-06 - Vital Energy added even more working interests in Permian Basin assets acquired from Henry Energy LP last year at a purchase price discounted versus recent deals, an analyst said.
California Resources Corp., Aera Energy to Combine in $2.1B Merger
2024-02-07 - The announced combination between California Resources and Aera Energy comes one year after Exxon and Shell closed the sale of Aera to a German asset manager for $4 billion.
DXP Enterprises Buys Water Service Company Kappe Associates
2024-02-06 - DXP Enterprise’s purchase of Kappe, a water and wastewater company, adds scale to DXP’s national water management profile.
Tellurian Exploring Sale of Upstream Haynesville Shale Assets
2024-02-06 - Tellurian, which in November raised doubts about its ability to continue as a going concern, said cash from a divestiture would be used to pay off debt and finance the company’s Driftwood LNG project.