Welcome!

News Feed Item

Antero Resources Operational Update

DENVER, Jan. 27, 2014 /PRNewswire/ --

  • Net daily production recently surpassed 750 MMcfe/d including 15,000 Bbl/d of liquids Fourth quarter 2013 average net daily production is estimated to be 675 to 680 MMcfe/d, above the midpoint of previously announced guidance range
  • First 10 Marcellus Shale wells with shorter stage lengths (SSL) had an average 120-day wellhead production rate of 7.9 MMcf/d, 27% above the Company's type curve
  • Five additional Utica Shale wells completed since 3rd quarter 2013 press release had an average 24-hour peak processed rate of 32.2 MMcfe/d assuming ethane recovery (65% liquids)
  • First 11 core area Utica Shale wells had an average 30-day processed rate of 14.7 MMcfe/d, assuming ethane rejection (35% liquids), despite producing into an operating environment with 1,100 psi line pressure (no compression)
  • First Utica compressor station recently completed and placed into operation (120 MMcf/d capacity)
  • Firm takeaway capacity and sales has been expanded to 1.5 Bcf/d by year-end 2014

(Logo: http://photos.prnewswire.com/prnh/20131101/LA09101LOGO)

Antero Resources (NYSE: AR) ("Antero" or the "Company") announced today recent operational highlights. 

Operational Results

All operational figures are as of the date of this release unless otherwise noted. 

Antero's combined net daily production from the Marcellus and Utica Shales recently surpassed 750 MMcfe/d including 15,000 Bbl/d of NGLs and oil.  Gross daily operated production from the Marcellus alone recently crossed the 750 MMcf/d threshold.  The Company has completed 242 horizontal wells in the Marcellus and Utica Shales since commencing drilling operations in Appalachia in 2009.  Antero's net production for the fourth quarter of 2013 is estimated to have averaged 675 to 680 MMcfe/d, which is above the midpoint of the previously announced guidance range of 660 to 690 MMcfe/d.  The fourth quarter of 2013 estimated production represents an organic production growth rate of 20% and 87% compared to the third quarter of 2013 and fourth quarter of 2012, respectively.

Commenting on the production milestone, Paul M. Rady, Antero's Chairman and CEO, said, "We recently set a company record high net production level of 750 MMcfe/d as a result of the continued success of our SSL program in the Marcellus, and the start-up of first Utica compression along with several new wells in the Utica in late January. Fourth quarter 2013 production is estimated to be slightly above the midpoint of our guidance range despite delays in the start-up of two third party compressor stations in the Utica.  The robust nature of our highly economic drilling program allows us to generate one of the strongest growth profiles in the industry. This growth should continue well into the future."

Marcellus Shale — Antero transitioned to shorter stage length (SSL) completions on virtually all of it Marcellus wells during the fourth quarter of 2013.  While Antero wells utilizing SSL completions have limited production history, Antero is encouraged by its well results, as well as those of other operators in the southwestern core of the Marcellus who have implemented shorter stage lengths and reduced cluster spacing completions.  To date, Antero has completed and placed on line 22 Marcellus wells utilizing SSL completions that have at least 30 days of production history.   The various actual average production rates are compared to the June 30th, 2013 reserve report type curve in the table below:




SSL vs Non-SSL Wellhead Average Rate Comparison (MMcf/d)


30-day rate

60-day rate

90-day rate

120-day rate






SSL Well Count

22

19

19

10

SSL Average Rate – MMcf/d(1)

10.0

8.6

8.1

7.9

1.5 Bcf/1,000' Type Curve Average Rate – MMcf/d(1)

7.6

7.1

6.6

6.2

SSL % Rate Improvement

31%

21%

24%

27%


(1)

 Wellhead condensate production (where applicable) is converted on a 6:1 basis



The 10 wells that have been on line for at least 120 days are 27 percent above Antero's 1.5 Bcf per 1,000 foot of lateral type curve.  The average well cost for SSL wells, defined as wells with stage lengths less than 225 feet, are approximately 12 percent higher than comparable non-SSL wells with an average stage length of 350 feet.

Antero is currently operating 15 drilling rigs in the Marcellus Shale play.  The Company has 63 gross (60 net) horizontal wells either in the process of drilling, completing or waiting on completion in the Marcellus.  Antero currently has two dedicated frac crews working in West Virginia along with three spot frac crews.  The Company plans to increase to seven frac crews for portions of the year to accommodate the additional inventory from increased rig activity, drilling productivity and the transition to SSL completions.  The increased frac crew activity will also allow the Company to fill increasing takeaway capacity.

Utica Shale - Since the third quarter 2013 press release, the Company has completed and tested five additional Utica Shale wells.  Based on gas composition analyses and assuming full ethane recovery (per current industry practice and assuming typical ethane plant production recoveries of 85% to 90%), these five wells had an average 24-hour peak processed rate of 32.2 MMcfe/d as summarized in the following table below:




Additional 5 Antero Utica Shale Wells - 24-Hour Peak Rate




Well Name

County

Gas Equivalent

Rate (MMcfe/d)

Wellhead Gas

(MMcf/d)

Condensate

(Bbl/d)

Shrunk Gas

(MMcf/d)

NGL

(Bbl/d)

% Liquids

Estimated BTU

Lateral

Length

(Feet)

Milligan 2H

Noble

40.2

17.2

2,087

13.5

2,361

66%

1276

5,989

Coal 3H

Noble

35.3

15.1

1,850

11.8

2,063

67%

1278

7,768

Milligan 3H

Noble

32.1

15.4

1,228

12.1

2,111

62%

1276

5,267

Dollison 1H

Noble

27.5

12.5

1,397

10.2

1,488

63%

1238

6,253

Milligan 1H

Noble

25.8

10.6

1,442

8.3

1,461

68%

1276

6,436

Average – Ethane Recovery

32.2

14.2

1,601

11.2

1,897

65%

1269

6,343










Average – Ethane Rejection(1)

27.3

14.2

1,601

13.0

779

52%

1269

6,343


(1)

Average of Antero's latest five Utica wells assuming ethane rejection.


The Company's rich gas production going into the Seneca processing complex in the Utica Shale has been flowing against 1,100 psi of line pressure while waiting on compression capacity, resulting in constrained production.  Expected line pressure with compression is in the 175 to 250 psi range. 

The Company has a compression and condensate stabilization agreement with a third-party midstream provider to construct and operate three compressor stations in Noble and Monroe Counties, Ohio.  These three compressor stations have a combined capacity of 340 MMcf/d and the three condensate stabilization facilities have a combined capacity of 16,000 Bbl/d, all of which are fully dedicated to Antero.  The first two compressor stations and condensate stabilization facilities were expected to be completed and placed in service during the fourth quarter of 2013.  However, these two facilities were delayed with the first 120 MMcf/d compressor station just recently coming on line in late January.  This compressor station is currently operating at approximately 67 percent of capacity as 6 of 9 units have been placed in service.  The remaining three units are scheduled to be placed in service over the next week.   The second 120 MMcf/d compressor station is now expected to be completed late in the first quarter of 2014.

Four out of the five wells detailed in the table above are currently producing to sales.  The Dollison 1H is waiting on pipeline infrastructure and scheduled to be turned to sales later in the first quarter of 2014.  In addition, two more wells have been completed and will be placed to sales over the next week as the first facility reaches full capacity. 

Antero's previously announced Utica wells are on line and continued to produce against significant high line pressures during the fourth quarter of 2013 as they awaited compression.  Assuming ethane rejection (Antero is currently rejecting ethane due to current market prices), the respective average 30-day processed production rates for these 11 previously disclosed wells, producing in an 1,100 psi operating pressure environment, have been summarized in the following table:




Initial 11 Antero Core Area Utica Shale Wells – 30-Day Constrained Production Rates




Well Name

County

Equivalent

Rate (MMcfe/d)

Wellhead Gas

(MMcf/d)

Condensate

(Bbl/d)

Shrunk Gas

(MMcf/d)(1)

NGL

(Bbl/d)

% Liquids

BTU

Lateral

Length

(Feet)

Gary 2H

Monroe

29.7

24.6

65

23.1

1,023

22%

1224

8,882

Rubel 2H

Monroe

19.2

15.9

64

15.0

625

22%

1217

6,571

Rubel 3H

Monroe

18.7

15.6

43

14.7

623

21%

1220

6,424

Yontz 1H

Monroe

17.0

15.2

1

14.6

392

14%

1161

5,115

Norman 1H

Monroe

16.4

14.3

2

13.6

461

17%

1186

5,498

Rubel 1H

Monroe

14.0

11.5

28

10.8

501

23%

1231

6,554

Wayne 2H

Noble

12.1

6.5

653

6.0

367

51%

1281

6,094

Wayne 3HA

Noble

11.0

6.1

540

5.6

354

49%

1272

6,712

Wayne 4H

Noble

9.2

5.2

452

4.7

284

48%

1265

6,493

Miley 2H

Noble

9.0

3.8

700

3.5

213

61%

1278

6,153

Miley 5HA

Noble

5.9

2.7

418

2.5

161

59%

1291

6,296

Average – Ethane Rejection

14.7

11.0

270

10.4

455

35%

1239

6,436










Average – Ethane Recovery(1)

17.9

11.0

270

9.2

1,189

53%

1239

6,436



(1)

Average of Antero's first 11 Utica core area wells assuming ethane recovery.


As described earlier in the press release, Antero is currently placing into service 120 MMcf/d of compression capacity which will allow the above wells to flow into a lower pressure operating environment which should improve productivity.

Antero is currently operating 5 drilling rigs in the Utica Shale play.  The Company has 18 gross (13 net) horizontal wells either in the process of drilling, completing, waiting on completion or waiting on pipeline or compression, including the three wells described earlier in the release.  Antero currently has two spot frac crews working in Ohio, and is adding a 3rd crew which will run during various periods throughout the year to accommodate its increased drilling activity.

Firm Transportation and Sales

Antero enters into firm transportation and sales agreements with various pipelines and counterparties in order to facilitate the delivery of its production and diversify its exposure to basis concentration risk.  These firm transportation and sales agreements generally have a term of ten years and commence by the end of 2014.  During the fourth quarter of 2013, the Company increased its total firm takeaway capacity by 175 MMcf/d to a total of 1,477 MMcf/d by the end of 2014.

 

Antero Resources is an independent oil and natural gas company engaged in the acquisition, development and production of unconventional oil and liquids-rich natural gas properties located in the Appalachian Basin in West Virginia, Ohio and Pennsylvania. Our website is located at www.anteroresources.com.

This release includes "forward-looking statements". Such forward-looking statements are subject to a number of risks and uncertainties, many of which are beyond Antero's control. All statements, other than historical facts included in this release, are forward-looking statements. All forward-looking statements speak only as of the date of this release. Although Antero believes that the plans, intentions and expectations reflected in or suggested by the forward-looking statements are reasonable, there is no assurance that these plans, intentions or expectations will be achieved. Therefore, actual outcomes and results could materially differ from what is expressed, implied or forecast in such statements.

We caution you that these forward-looking statements are subject to all of the risks and uncertainties, most of which are difficult to predict and many of which are beyond our control, incident to the exploration for and development, production, gathering and sale of natural gas, NGLs and oil. These risks include, but are not limited to, commodity price volatility, inflation, lack of availability of drilling and production equipment and services, environmental risks, drilling and other operating risks, regulatory changes, the uncertainty inherent in estimating natural gas, NGLs and oil reserves and in projecting future rates of production, cash flow and access to capital, the timing of development expenditures, and the other risks described under the heading "Risk Factors" in our Final Prospectus dated October 9, 2013 on file with the Securities and Exchange Commission (File No. 333-189284).

SOURCE Antero Resources

More Stories By PR Newswire

Copyright © 2007 PR Newswire. All rights reserved. Republication or redistribution of PRNewswire content is expressly prohibited without the prior written consent of PRNewswire. PRNewswire shall not be liable for any errors or delays in the content, or for any actions taken in reliance thereon.

Latest Stories
Automation is enabling enterprises to design, deploy, and manage more complex, hybrid cloud environments. Yet the people who manage these environments must be trained in and understanding these environments better than ever before. A new era of analytics and cognitive computing is adding intelligence, but also more complexity, to these cloud environments. How smart is your cloud? How smart should it be? In this power panel at 20th Cloud Expo, moderated by Conference Chair Roger Strukhoff, paneli...
Cloud applications are seeing a deluge of requests to support the exploding advanced analytics market. “Open analytics” is the emerging strategy to deliver that data through an open data access layer, in the cloud, to be directly consumed by external analytics tools and popular programming languages. An increasing number of data engineers and data scientists use a variety of platforms and advanced analytics languages such as SAS, R, Python and Java, as well as frameworks such as Hadoop and Spark...
"Loom is applying artificial intelligence and machine learning into the entire log analysis process, from start to finish and at the end you will get a human touch,” explained Sabo Taylor Diab, Vice President, Marketing at Loom Systems, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
The current age of digital transformation means that IT organizations must adapt their toolset to cover all digital experiences, beyond just the end users’. Today’s businesses can no longer focus solely on the digital interactions they manage with employees or customers; they must now contend with non-traditional factors. Whether it's the power of brand to make or break a company, the need to monitor across all locations 24/7, or the ability to proactively resolve issues, companies must adapt to...
Cloud promises the agility required by today’s digital businesses. As organizations adopt cloud based infrastructures and services, their IT resources become increasingly dynamic and hybrid in nature. Managing these require modern IT operations and tools. In his session at 20th Cloud Expo, Raj Sundaram, Senior Principal Product Manager at CA Technologies, will discuss how to modernize your IT operations in order to proactively manage your hybrid cloud and IT environments. He will be sharing bes...
A look across the tech landscape at the disruptive technologies that are increasing in prominence and speculate as to which will be most impactful for communications – namely, AI and Cloud Computing. In his session at 20th Cloud Expo, Curtis Peterson, VP of Operations at RingCentral, highlighted the current challenges of these transformative technologies and shared strategies for preparing your organization for these changes. This “view from the top” outlined the latest trends and developments i...
With major technology companies and startups seriously embracing Cloud strategies, now is the perfect time to attend 21st Cloud Expo October 31 - November 2, 2017, at the Santa Clara Convention Center, CA, and June 12-14, 2018, at the Javits Center in New York City, NY, and learn what is going on, contribute to the discussions, and ensure that your enterprise is on the right path to Digital Transformation.
@DevOpsSummit at Cloud Expo taking place Oct 31 - Nov 2, 2017, at the Santa Clara Convention Center, Santa Clara, CA, is co-located with the 21st International Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The widespread success of cloud computing is driving the DevOps revolution in enterprise IT. Now as never before, development teams must communicate and collaborate in a dynamic, 24/7/365 environment. There is ...
"We are a monitoring company. We work with Salesforce, BBC, and quite a few other big logos. We basically provide monitoring for them, structure for their cloud services and we fit into the DevOps world" explained David Gildeh, Co-founder and CEO of Outlyer, in this SYS-CON.tv interview at DevOps Summit at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Join us at Cloud Expo June 6-8 to find out how to securely connect your cloud app to any cloud or on-premises data source – without complex firewall changes. More users are demanding access to on-premises data from their cloud applications. It’s no longer a “nice-to-have” but an important differentiator that drives competitive advantages. It’s the new “must have” in the hybrid era. Users want capabilities that give them a unified view of the data to get closer to customers and grow business. The...
Artificial intelligence, machine learning, neural networks. We’re in the midst of a wave of excitement around AI such as hasn’t been seen for a few decades. But those previous periods of inflated expectations led to troughs of disappointment. Will this time be different? Most likely. Applications of AI such as predictive analytics are already decreasing costs and improving reliability of industrial machinery. Furthermore, the funding and research going into AI now comes from a wide range of com...
For organizations that have amassed large sums of software complexity, taking a microservices approach is the first step toward DevOps and continuous improvement / development. Integrating system-level analysis with microservices makes it easier to change and add functionality to applications at any time without the increase of risk. Before you start big transformation projects or a cloud migration, make sure these changes won’t take down your entire organization.
"When we talk about cloud without compromise what we're talking about is that when people think about 'I need the flexibility of the cloud' - it's the ability to create applications and run them in a cloud environment that's far more flexible,” explained Matthew Finnie, CTO of Interoute, in this SYS-CON.tv interview at 20th Cloud Expo, held June 6-8, 2017, at the Javits Center in New York City, NY.
Internet of @ThingsExpo, taking place October 31 - November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA, is co-located with 21st Cloud Expo and will feature technical sessions from a rock star conference faculty and the leading industry players in the world. The Internet of Things (IoT) is the most profound change in personal and enterprise IT since the creation of the Worldwide Web more than 20 years ago. All major researchers estimate there will be tens of billions devic...
SYS-CON Events announced today that MobiDev, a client-oriented software development company, will exhibit at SYS-CON's 21st International Cloud Expo®, which will take place October 31-November 2, 2017, at the Santa Clara Convention Center in Santa Clara, CA. MobiDev is a software company that develops and delivers turn-key mobile apps, websites, web services, and complex software systems for startups and enterprises. Since 2009 it has grown from a small group of passionate engineers and business...