Poor EQT Results Overlooked: Company's First Utica Well Shatters Records

July 26, 2015

Natural Gas Intel (subscription may be required)

EQT Corp.'s profits continued to decline in the second quarter, this time taking a significant slide on even lower commodity prices and overshadowing double-digit growth in the company's natural gas sales volume.

But the financial news was somewhat expected and brushed quickly aside during a conference call to discuss earnings that was dominated by the company's first Utica Shale well in Southwestern Pennsylvania. It shattered the Appalachian Basin's previous record and had financial analysts wondering if the formation could be given priority over the company's dominant assets in the Marcellus Shale any time soon.

For now, management said, the short answer is a resounding "no." The well was a beast. One that management called "the most technically challenging well" the company has ever drilled or completed, saying there was difficulty holding pressure back and warning that a steep learning curve remains for EQT in the costly deep dry gas Utica.

The well, located in Greene County, PA, underwent a 24-hour deliverability test to sales on Wednesday night. What happened, President of Exploration and Production Steven Schlotterbeck said, "far exceeded our expectations." The well averaged 72.9 MMcf/d with an average flowing casing pressure of 8,641 psi. That equates to a 24-hour initial production (IP) rate, per 1,000 feet of lateral, of 22.6 MMcf/d.

"To the best of our knowledge, this is the highest reported IP of any Utica well to date," Schlotterbeck said.

The next publicly announced Utica well that even comes close was Range Resources Corp.'s in nearby Washington County, PA, which had an average 24-hour peak production rate of 59 MMcf/d in December (see Shale Daily, Dec. 15, 2014).

EQT's well was flowed directly into sales off a Marcellus Shale pad, where management said no other wells were shut-in for the test. On Thursday, Schlotterbeck said the well was producing at 26 MMcf/d on cleanup, with 2,000 barrels per day of frack water.

Read entire article at Natural Gas Intel (subscription may be required).

<- Go Back

Sign Up for Email

Give Us Your Thoughts