American Oil and Gas Reporter - August 2022 - 57

SpecialReport: Marcellus & Utica Activity
Infrastructure Is Key
Range Resources Corporation is
among the companies with the ability to
move additional gas out of the basin
when the time is right for it to shift from
a maintenance strategy to production
growth, says Chief Operating Officer
Dennis Degner. Although total Appalachian
output is nearing the upper limit of
existing takeaway capacity, 1 Bcf/d-2
Bcf/d of combined demand and capacity
is still available to Range.
" It goes without saying that infrastructure
is key to the future of our industry
and it is super critical as we think about
getting our hydrocarbons to a world with
strong energy demand, " Degner says.
" Range is on the low end of the cost
curve, we lead our peers from a capital
efficiency standpoint, and we think we
can deliver these hydrocarbons to customers
and end-users in the most efficient manner.
On top of that, the Marcellus is on the
low end of the emissions curve globally. "
About 80% of Range Resources' gross
volume of 2 Bcf/d is shipped out of the
basin, with about 50% flowing to the
Gulf Coast through long-term transportation
agreements, Degner explains. On
the LNG side, 400 Mcf/d is exported
through LNG outlets.
To maintain output, Range is bringing
on approximately 60 wells this year, focusing
on the Marcellus on a 460,000 netacre
stacked pay position in southwestern
Pennsylvania also prospective of the Utica
and Upper Devonian. Inventory includes
3,000 undrilled Marcellus wells, including
2,000 projected at 2 billion cubic feet
equivalent or greater estimated ultimate
recoveries per 1,000 foot of lateral.
While some producers focus on either
dry or wet gas, Range's Washington
County position provides a healthy balance,
moving from pipeline-quality dry gas in
the east to processable gas in the west
that allows Range to generate approximately
100,000 barrels per day of natural
gas liquids, making it a top 10 NGL producer
in the country, Degner explains.
Creative drilling and well design teams
now extend average lateral lengths beyond
11,000 feet, up by 5% in the second
quarter compared with all of 2021, he
points out. Range has drilled several wells
with laterals longer than 18,000 feet and
more than 50 with laterals extending beyond
15,000 feet.
Focusing on efficiencies, Range set
an internal completions record of 11.3
Range Resources plans to drill
55 wells this year focused in
the Marcellus on its 460,000
net-acre stacked pay position
in southwestern Pennsylvania,
which is also prospective of
the Utica and Upper Devonian.
The company has 3,000 undrilled
Marcellus wells in its inventory,
including 2,000 wells
projected at 2 Bcfe or greater
EURs per 1,000 foot of lateral,
and the ability to target dry gas,
wet gas, or a balance of both.
stages a day in the second quarter, up
from nine a day in the previous quarter.
About 30%-50% of drilling involves moving
back to existing pads. In the second
quarter, the company returned for the
third time to what is now a 12-well pad
after drilling the first wells in 2011 and a
second set in 2018, Degner elaborates.
The company also continues to curb
emissions, making key strides toward net
zero Scope 1 and Scope 2 GHG emissions
by 2025. In fact, based on third-party
data, Range Resources ranks lowest in
carbon dioxide emissions intensity among
peers. The company also certified four
well pads through Project Canary's TrustWell™
process. Range uses an electric
frac fleet, is entering a pilot program for
instrument air for pneumatic controllers
and maintains a robust leak detection and
repair program, which conducts quarterly
inspections at production sites but is increasing
the frequency to eight times a
year in 2022, Degner notes.
" Emissions from development activities
have been reduced 31%, and since 2018,
our Scope 1 emissions have been reduced
58% and methane intensity has dropped
75% while production has remained relatively
constant, " Degner reports.
While production is steady, Range has
the capability to ratably increase NGL
output, Degner says. Currently, the company
extracts 60,000-65,000 bbl/d of
ethane from gas, partly to keep gas in
line with pipeline requirements, but has
the ability to capture an additional 15,00020,000
bbl/d as domestic and foreign demand
rises.
" Demand for energy is growing and
changing, and the one thing that is pretty
apparent is that natural gas is going to
play a critical, expanded role in the
coming years, " Degner remarks. " If that
is the case, and we believe it surely will
be, then look no further than the Appalachian
Basin for responsibly sourced
gas that can meet emissions requirements
and expectations for quantity. "
High-Quality Position
The acquisition in March of Chief Oil
& Gas, including 113,000 net Marcellus
acres, gives Chesapeake Energy Corporation
additional flexibility to further coordinate
development with outflow instead
of having to compete with another company
for space on the same pipelines
transporting gas out of northeastern Pennsylvania,
says Chief Operating Officer
Josh Viets. The addition also gives Chesapeake
increased exposure to higher outof-basin
pricing, he says.
" Being the single owner gives us the
opportunity to not only plan our development
programs to the point that we
drill wells that we know have capacity
for, but also provides a single voice to
work with our midstream providers to
help them better plan their business and
time their investments, " Viets details.
Chesapeake times drilling and development
of 80-95 wells a year across its
inventory of 1,435 wells on available offtake
from 650,000 net acres in northeastern
Pennsylvania to avoid backing out base
production as it boosts output, he explains.
Overall lateral lengths, which today
average a little more than 10,000 feet at
a cost of $750-$850 per lateral foot, are
expected to grow slightly going forward,
he details. On the completion side, proppant
loading ranges from 1,500 pounds/lateral
foot in better rock to more than
3,000 pounds in some areas of the Upper
Marcellus, with stage lengths varying
from 150 to 350 feet with five to seven
clusters per stage.
AUGUST 2022 57
American Oil and Gas Reporter - August 2022

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