- During the third quarter 2013, ARP connected eight horizontal Marcellus Shale wells located in Lycoming County, PA, which demonstrated exceptionally strong initial flow rates. Despite limitations of infrastructure that have inhibited operation at full capacity, total gross daily production from the eight wells reached maximum pipeline capacity of approximately 62 Mmcfd. The characteristics of these well sites are highly favorable compared to other wells in the region due to: the thickness and depth of the shale in the area, level of porosity (~10-14%), permeability (up to 400 nD), TOC (up to 6%), and a high pressure gradient (~0.89 psi/ft). Nonetheless, ARP has experienced substantially lower than expected natural gas revenues from these wells due to weakness in Transco-Leidy Line pricing.
- In September 2013, ARP began connecting its five initial wells drilled in the Utica-Point Pleasant formation in northern Harrison County, OH. Early results indicated higher levels of high-grade condensate than originally expected. ARP had previously secured capacity to several processing plants in the area, namely the Natrium and Hastings plants via Blue Racer Midstream’s gathering system. A major fire occurred at the Natrium processing plant on September 21 st, causing the plant to shut down and, subsequently, forcing ARP to temporarily shut in the Harrison County wells. ARP has successfully made arrangements in the interim to send a portion of the Harrison County production to other plants, and several of the wells have been brought back online at limited production. ARP is in the process of identifying additional third-party capacity in order to optimize production.
- ARP has drilled approximately 40 wells to date in the oil and liquids rich Marble Falls play, primarily in Jack County, TX in which the Company holds approximately 75,000 net acres. ARP has now identified additional productive zones located above and below the Marble Falls play, including the Caddo formation, Bend conglomerates and Chappel Reefs. Early testing of these formations has yielded initial production rates of 100-300 barrels of oil per day. Additional 3-D seismic is being undertaken to further develop these formations in conjunction with the Marble Falls.
- ARP continues to experience favorable results from approximately 466 billion cubic feet (“Bcf”) of proved reserves in the Raton (NM), Black Warrior (AL) and County Line (WY) basins, which were purchased from EP Energy in July 2013. To date, the assets have been producing at rates higher than the Company’s forecasted expectations. ARP has also identified a number of high-returning work over opportunities on Raton and Black Warrior locations that are expected to be completed over the coming year.
Atlas Resource Partners, L.P. Provides Operational And Financial Update, Announces Third Quarter 2013 Earnings Call Date
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts