Key Points (Marcellus Side of the Business noted here only) Released by RRC - 17 Dec 2013):
Marcellus gross production reached 1 Bcfe per day.
Year to date, Marcellus super-rich wells continue to significantly outperform the type curve.
Mariner West ethane pipeline fully operational.
ATEX ethane pipeline commenced operations.
17 super-rich wells drilled in 2012 and turned to sales during the early part of 2013 are consistently producing approximately 40% above the 1.32 Mmboe type curve established at year end 2012.
22 super-rich Marcellus wells during mid-year 2013 which have produced on average just over 114 days. These wells are performing approximately 74% above the 1.32 Mmboe EUR type curve. Initial 24-hour production rates for these wells averaged 2,487 (2,059 net) boe per day with 65% liquids assuming 80% ethane extraction (476 barrels per day of condensate, 1,149 barrels per day of NGLs and 5.2 Mmcf per day of gas).
Mariner West project has become fully operational. Range supplied the initial ethane for the line fill of the system during the commissioning stage of the project from the MarkWest processing plant in Houston, Pennsylvania for the 400 mile delivery into storage facilities just outside Sarnia, Canada. Range expects to be flowing 15,000 (12,525 net) barrels of ethane per day on January 1, 2014.
ATEX pipeline project began operations this month. Range has secured the rights to transport 10,000 (8,350 net) barrels of ethane per day on ATEX for the next two years, increasing to 20,000 (16,700 net) barrels of ethane per day for the remaining 13 years under the contract.
The relationship between MWE and Range resulting in this 1 Billion cuft/day production rate is just wonderful...we have all watched it unfold as both companies supported each other...clearly this should be a business school case study. And you can tell MWE learned a lot from it: Antero in its'Q3 report noted that its' production rate was now 566 Million cuft/day up 128 % from Q3 of 2012. One year from now MWE will have a Billion cuft/day cryo capacity at Sherwood to handle Antero's action there and additional capacity at Seneca that Antero will be using. So, Antero should within 18 months be MWE's second billion cuft/day producer customer. Add a couple more like Range and Antero and MWE's growth will be on automatic pilot.