I read they planned to use sand but the pressure caused them to select ceramic proppant. Their engineers believe they can use sand which will be much cheaper.
I am buying HCLP, even with the Industry collapse. These wells are more engineered than found. In the last year companies have vastly increased their sand use. I have read 3x's what they used a few years ago, and are getting better results. Its a risk but personally I would rather chase value than a $600 + taco stock. (chipotle)
They plan to generate their own gas for the Cracker. I went by the site last week and I noticed they are constructing new High Tension towers. That might be the first thing we see built there.
Two things impressed me about that well. Only 3200 ft lateral and over 8k pressure. RRC got a 59 mcfday Utica last year. Still waiting for EUR data. They are expensive to drill but given that the infrastructure will be build out with the Marcellus development it should be very profitable.
Only negative I saw is they used ceramic propant. I am building up a position is HCLP.
I am so happy that each and every Testla S purchaser will get $7500 from the Federal Government financed by my tax dollars so they can go from 0 to 60 in 2.8 seconds. Personally I think it is ludicrous. You will get hard time for stealing $20 dollars from Wal Mart but the government has taken the lid off the subsidies for the rich. Insane.
The only late news I have heard on the cracker is that Shell has supposedly agreed to lease Michael Baker's old offices in Beaver. I went by the site about a month ago and they are doing a lot of excavation work. My read is that they will build it eventually.
The propane market is interesting. I just locked in my next years supply at $1.99. Not bad. I saw a MWE propane truck a couple of weeks ago coming down a hill near Warren. The only thing on top of the hill is one of the small stripping plants for the shallow gas fields. The fact they are collecting this propane from these people tells me they must be moving propane, just not at a great price. In the winter they do truck propane up to the United Refinery. I expect things will change. I have started to buy some limited O&G stocks again.
Rex Energy reported on results from an upper Devonian (Burkett shale) in Butler County PA. 8.2 MMcfe/d of energy a day. 675 barrels of NGL'S over 100 of condensate and 1300 + BTU gas of 3.5 million a day. They will be able to strip a lot of propane with that many btu's. Western PA with its wet Marcellus, dry Utica and wet Upper D is shaping up to be a huge energy location.
59 mcfd Utica last year followed by a 43 mcfd Marcellus this quarter. Both PA records.