Horizontal Development in the Appalachian Basin Devonian Section Joe Morris (etal( etal) Equitable Production Company

Transcription

1 Horizontal Development in the Appalachian Basin Devonian Section Joe Morris (etal( etal) Equitable Production Company

2 Geologic Setting Structure Reservoir Fracturing Methodology Examples New Zones/Technology

3 Horizontal Drilling Horizontal Plays Pennsylvanian CBM 1,000 3,500 ft Conventional Play Berea/Weir/Big Lime ,000 ft Devonian Lower Huron Shale 2,500 5,000 ft Marcellus Shale 2,500 7,500 ft

4 K ENTU CKY RIVER PAI NT CREEK UPL IFT U D U D U D U D U U U D U D TRA DITI ONAL LIMITS OFBIG SAN DY FIE LD D U U D PIK E C OUN TY U PLIF T STRUCTURE: TOP OF BASEMENT OF ROME TROU GH D D NOR THER N BO UN DAY BLAINE CR EEK F AUL T FAULT SYSTEM IRVINE- PA INT CREEK FAULT S YSTEM BIG SANDY GAS FIELD D'INVILLIERS STRUCTURES SOUTHERN BO UNDARY OF ROME TROUGH PIKEVILLE FAULT PERRY COUNTY UP LIFT RU SS ELL F ORK FA ULT PINE MOUNTAIN THR UST F AUL T mi Revised from TBR Consortium B I G SA NDY G A S FI ELD

5 Cross-Section Devonian Pay Section EKY Southern WV Cleveland A Upper Huron Cleveland Berea A A LHRN Silt Lower Huron A

6 Devonian Catskill Foreland basin (map by Lynn S Fichter).

7 From Blakey

8 CATUR GREEN ELAWARE HENRY RUSH FRIMBLE OLDHAM ELSON MARION CUMBERLAND RIPLEY JEFFERSON SPENCER TAYLOR ADAIR FAYETTE HENRY SHELBY WASHINGTON CLINTON RANDOLPH WAYNE FRANKLIN CARROLL RUSSELL UNION DEARBORN THERMAL MATURITY: LOWER HURON GALL ANDERSON CASEY OWEN FRANKLIN MERCER BOYLE BOONE WOODFORD WAYNE DRAKE PREBLE BUTLER HAMILTON GRANT LINCOLN KENTON SCOTT JESSAMINE GARRARD PULASKI CAMP FAYETTE HARRISON MC CREARY MIAMI MONTGOMERY PENDLETON WARREN CLERMONT BOURBON MADISON ROCKCASTLE BRACKEN CLARK ROBSON NICHOLAS LAUREL WHITLEY ESTILL JACKSON CHAMPAIGN CLARK GREENE CLINTON BROWN MASON MONTGOMERY BATH POWELL HIGHLAND FLEMING LEE OWSLEY CLAY BELL ADAMS MENIFEE MADISON FAYETTE LEWIS ROWAN WOLFE MORGAN BREATHITT LESLIE PERRY HARLAN FRANKLIN PICKAWAY ROSS PIKE SCIOTO CARTER ELLIOT MAGOFFIN OUTCROP OF DEVONIAN SHALE KNOX GREENUP KNOTT FLOYD LETCHER VINTON JACKSON LAWRENCE LAWRENCE BOYD JOHNSON LICKING FAIRFIELD HOCKING WAYNE MART IN PIKE PERRY GALLIA CABELL DICKENSON MUSKINGUM ATHENS MINGO MEIGS MASON LINCOLN MORGAN PUTNAM LOGAN BUCHANAN RITCHIE WYTHE WISE SMYTH CAR mi ft SCOTT WASHINGTON GRAYSON LEE RUSSELL GUERNSEY JACKSON BOONE NOBLE WASHINGTON WOOD KANAWHA WYOMING MC DOWELL WIRT TAZEWELL ROANE BELMONT MONROE PLEASANTS CALHOUN FAYETTE RALEIGH CLAY TYLER MERCER BLAND GILMER OHIO MARSHALL WETZ DODDRIDGE BRAXTO NICHOLAS SUMMERS GI PU Thermal Maturity measured in Vitrinite Reflectance (Ro) CI: 0.1 Ro AY OVERTON PICKETT FENTRESS SCOTT CAMPBELL CLAIBORNE UNION AINGER HAWKINS SULLIVAN HINGTON CARTER JOHNSON WATAUGA ASHE ALLEGHANY WILKES SU Y

9 BTU ISOPACH DEVONIAN SHALE N mi ISOPACH: BTU Content Devonian Shale CI: 50 BTU

10 RITCHIE WOOD WARREN UNION YETTE HAWKINS JACKSON LAWRENCE VINTON LETCHER KNOTT FLOYD LAWRENCE BOYD JOHNSON SCOTT CLERMONT MC CREARY PULASKI MADISON BOURBON BRACKEN HARRISON FENTRESS WAYNE LINCOLN CKETT CLINTON RUSSELL CASEY NGTON GALL ANDERSON RY DEARBORN ARROLL ANKLIN SCOTT BOYLE MERCER OWEN WOODFORD FRANKLIN GARRARD JESSAMINE FAYETTE BUTLER HAMILTON KENTON GRANT BOONE PENDLETON CAMP ROCKCASTLE JACKSON OWSLEY CLAIBORNE UNION BELL CLAY CAMPBELL WHITLEY LAUREL RAINGER MBLEN HARLAN LESLIE PERRY LEE ADAMS WOLFE MENIFEE ROWAN LEWIS ESTILL POWELL MONTGOMERY BATH FLEMING CLARK NICHOLAS LEE CLINTON HIGHLAND BROWN MASON ROBSON BREATHITT MAGOFFIN CARTER ELLIOT MORGAN SCIOTO GREENUP PIKE ROSS RALEIGH FAYETTE CLAY SMYTH WATAUGA ASHE TAZEWELL BUCHANAN RUSSELL WASHINGTON SULLIVAN CARTER SHINGTON WISE DICKENSON SCOTT JOHNSON PUTNAM LOGAN LINCOLN PIKE WAYNE MART IN MINGO MEIGS CABELL GALLIA MASON MC DOWELL WYOMING BOONE KANAWHA ROANE WIRT JACKSON CALHOUN PULA CARRO YAD SURR GRAYSON WYTHE WILKES ALLEGHANY M GR SUMMERS MERCER BLAND GILE NICHOLAS BRAXTON GILMER HOCKING FAIRFIELD LICKING CHAMPAIGN GREENE DRAKE RANDOLPH WAYNE MIAMI MONTGOMERY PREBLE FRANKLIN FAYETTE CLARK MADISON PICKAWAY TYLER WETZEL MARSHALL WASHINGTON NOBLE GUERNSEY MUSKINGUM ATHENS PERRY MORGAN PLEASANTS MONROE BELMONT OH IO DODDRIDGE KNOX OUTCROP OF DEVONIAN SHALE mi TOC Isopach Cleveland Shale CI: 1% TOC

11 N Cleveland Net Net Organic Shale Shale Contour Interval Interval = ft ft mi CLEVELAND SHALE ISOPACH: Net Organic Shale CI: 20'

12 LEY TINGTON DELAWARE RITCHIE WOOD WARREN UNION FAYETTE BOTETOURT HENR FRANKLIN H ROCK HAWKINS JACKSON LAWRENCE VINTON LETCHER KNOTT FLOYD LAWRENCE BOYD JOHNSON SCOTT MORGAN CLERMONT MC CREARY PULASKI MADISON BOURBON BRACKEN HARRISON OVERTON MARION CUMBERLAND ADAIR TAYLOR FENTRESS WAYNE LINCOLN PICKETT CLINTON RUSSELL CASEY WASHINGTON GALL ANDERSON HENRY DEARBORN FRIMBLE SPENCER HAM SHELBY FERSON RIPLEY SH CARROLL FRANKLIN SCOTT BOYLE MERCER OWEN WOODFORD FRANKLIN GARRARD JESSAMINE FAYETTE BUTLER HAMILTON KENTON GRANT BOONE PENDLETON CAMP ROCKCASTLE JACKSON OWSLEY CLAIBORNE UNION BELL CLAY CAMPBELL RSON WHITLEY LAUREL GRAINGER HAMBLEN HARLAN LESLIE PERRY LEE ADAMS WOLFE MENIFEE ROWAN LEWIS ESTILL POWELL MONTGOMERY BATH FLEMING CLARK NICHOLAS LEE CLINTON HIGHLAND BROWN MASON ROBSON BREATHITT MAGOFFIN CARTER ELLIOT MORGAN SCIOTO GREENUP PIKE ROSS RALEIGH FAYETTE CLAY SMYTH WATAUGA ASHE TAZEWELL BUCHANAN RUSSELL WASHINGTON SULLIVAN CARTER WASHINGTON GREENE UNICOI WISE DICKENSON SCOTT AVERY MIT JOHNSON PUTNAM LOGAN LINCOLN PIKE WAYNE MARTIN MINGO MEIGS CABELL GALLIA MASON MC DOWELL WYOMING BOONE KANAWHA ROANE WIRT JACKSON CALHOUN PULASKI MONTGOMERY CARROLL YADKIN SURRY GRAYSON WYTHE WILKES ALLEGHANY FORSYTH STOKES FLOYD MONROE GREENBRIER WEBSTER UPSHUR SUMMERS MERCER BLAND GILES NICHOLAS BRAXTON LEWIS GILMER CRAIG ALLEGHANY ROANOKE POCAHONTAS RANDOLPH BAT GUIL ASHLAND HOCKING FAIRFIELD LICKING LOGAN CHAMPAIGN GREENE VAN WERT PAULDING MERCER DRAKE RANDOLPH HENRY BLACKFORD WAYNE JAY ALLEN ADAMS WELLS SHELBY MIAMI MONTGOMERY PREBLE AUGLAIZE ALLEN PUTNAM MARION CRAWFORD DELAWARE FRANKLIN FAYETTE CLARK UNION MADISON WYANDOT HARDIN SENECA PICKAWAY MORROW RICHLAND HURON KNOX TYLER WETZEL MARSHALL HANCOCK COLUMBIANA TUSCARAWAS WASHINGTON NOBLE GUERNSEY STARK PORTAGE COSHOCTON MUSKINGUM ATHENS PERRY MORGAN MEDINA WAYNE HOLMES SUMMIT PLEASANTS MONROE BELMONT HARRISON CARROLL MAHONING JEFFERSON TAYLOR MONONGALIA ALLEGHENY BARBOUR OHIO GREENE DODDRIDGE HARRISON MARION WASHINGTON BEAVER BROOKE LAWRENCE BUTLER PRESTO FAYETTE TUCK WES ARMS HANCOCK KNOX PATRICK Cleveland Shale Play Fairway Cleveland Shale Play Fairway

13 RITCHIE WOOD WARREN UNION YETTE HAWKINS JACKSON LAWRENCE VINTON LETCHER KNOTT FLOYD LAWRENCE BOYD JOHNSON SCOTT CLERMONT MC CREARY PULASKI MADISON BOURBON BRACKEN HARRISON FENTRESS WAYNE LINCOLN CKETT CLINTON RUSSELL CASEY NGTON GALL ANDERSON RY DEARBORN ARROLL ANKLIN SCOTT BOYLE MERCER OWEN WOODFORD FRANKLIN GARRARD JESSAMINE FAYETTE BUTLER HAMILTON KENTON GRANT BOONE PENDLETON CAMP ROCKCASTLE JACKSON OWSLEY CLAIBORNE UNION BELL CLAY CAMPBELL WHITLEY LAUREL RAINGER MBLEN HARLAN LESLIE PERRY LEE ADAMS WOLFE MENIFEE ROWAN LEWIS ESTILL POWELL MONTGOMERY BATH FLEMING CLARK NICHOLAS LEE CLINTON HIGHLAND BROWN MASON ROBSON BREATHITT MAGOFFIN CARTER ELLIOT MORGAN SCIOTO GREENUP PIKE ROSS RALEIGH FAYETTE CLAY SMYTH WATAUGA ASHE TAZEWELL BUCHANAN RUSSELL WASHINGTON SULLIVAN CARTER SHINGTON WISE DICKENSON SCOTT JOHNSON PUTNAM LOGAN LINCOLN PIKE WAYNE MART IN MINGO MEIGS CABELL GALLIA MASON MC DOWELL WYOMING BOONE KANAWHA ROANE WIRT JACKSON CALHOUN PULA CARRO YAD SURR GRAYSON WYTHE WILKES ALLEGHANY M GR SUMMERS MERCER BLAND GILE NICHOLAS BRAXTON GILMER HOCKING FAIRFIELD LICKING CHAMPAIGN GREENE DRAKE RANDOLPH WAYNE MIAMI MONTGOMERY PREBLE FRANKLIN FAYETTE CLARK MADISON PICKAWAY TYLER WETZEL MARSHALL WASHINGTON NOBLE GUERNSEY MUSKINGUM ATHENS PERRY MORGAN PLEASANTS MONROE BELMONT OH IO DODDRIDGE KNOX OUTCROP OF DEVONIAN SHALE mi TOC Isopach Lower Huron Shale CI: 1% TOC

14 LEGEND ISOPACH: LOWER HURON NET ORGANIC SHALE CONTOUR INTERVAL: LOWER HURON Net Net Organic Shale Shale Contour Interval Interval = ft ft N mi

15 LEY TINGTON DELAWARE RITCHIE WOOD WARREN UNION FAYETTE BOTETOURT HENR FRANKLIN H ROCK HAWKINS JACKSON LAWRENCE VINTON LETCHER KNOTT FLOYD LAWRENCE BOYD JOHNSON SCOTT MORGAN CLERMONT MC CREARY PULASKI MADISON BOURBON BRACKEN HARRISON OVERTON MARION CUMBERLAND ADAIR TAYLOR FENTRESS WAYNE LINCOLN PICKETT CLINTON RUSSELL CASEY WASHINGTON GALL ANDERSON HENRY DEARBORN FRIMBLE SPENCER HAM SHELBY FERSON RIPLEY SH CARROLL FRANKLIN SCOTT BOYLE MERCER OWEN WOODFORD FRANKLIN GARRARD JESSAMINE FAYETTE BUTLER HAMILTON KENTON GRANT BOONE PENDLETON CAMP ROCKCASTLE JACKSON OWSLEY CLAIBORNE UNION BELL CLAY CAMPBELL RSON WHITLEY LAUREL GRAINGER HAMBLEN HARLAN LESLIE PERRY LEE ADAMS WOLFE MENIFEE ROWAN LEWIS ESTILL POWELL MONTGOMERY BATH FLEMING CLARK NICHOLAS LEE CLINTON HIGHLAND BROWN MASON ROBSON BREATHITT MAGOFFIN CARTER ELLIOT MORGAN SCIOTO GREENUP PIKE ROSS RALEIGH FAYETTE CLAY SMYTH WATAUGA ASHE TAZEWELL BUCHANAN RUSSELL WASHINGTON SULLIVAN CARTER WASHINGTON GREENE UNICOI WISE DICKENSON SCOTT AVERY MIT JOHNSON PUTNAM LOGAN LINCOLN PIKE WAYNE MART IN MINGO MEIGS CABELL GALLIA MASON MC DOWELL WYOMING BOONE KANAWHA ROANE WIRT JACKSON CALHOUN PULASKI MONTGOMERY CARROLL YADKIN SURRY GRAYSON WYTHE WILKES ALLEGHANY FORSYTH STOKES FLOYD MONROE GREENBRIER WEBSTER UPSHUR SUMMERS MERCER BLAND GILES NICHOLAS BRAXTON LEWIS GILMER CRAIG ALLEGHANY ROANOKE POCAHONTAS RANDOLPH BAT GUIL ASHLAND HOCKING FAIRFIELD LICKING LOGAN CHAMPAIGN GREENE VAN WERT PAULDING MERCER DRAKE RANDOLPH HENRY BLACKFORD WAYNE JAY ALLEN ADAMS WELLS SHELBY MIAMI MONTGOMERY PREBLE AUGLAIZE ALLEN PUTNAM MARION CRAWFORD DELAWARE FRANKLIN FAYETTE CLARK UNION MADISON WYANDOT HARDIN SENECA PICKAWAY MORROW RICHLAND HURON KNOX TYLER WETZEL MARSHALL HANCOCK COLUMBIANA TUSCARAWAS WASHINGTON NOBLE GUERNSEY STARK PORTAGE COSHOCTON MUSKINGUM ATHENS PERRY MORGAN MEDINA WAYNE HOLMES SUMMIT PLEASANTS MONROE BELMONT HARRISON CARROLL MAHONING JEFFERSON TAYLOR MONONGALIA ALLEGHENY BARBOUR OHIO GREENE DODDRIDGE HARRISON MARION WASHINGTON BEAVER BROOKE LAWRENCE BUTLER PRESTO FAYETTE TUCK WES ARMS HANCOCK KNOX PATRICK Lower Huron Play Fairway Lower Huron Play Fairway

16 Shale Properties Sidewall cores, Hazard N. Quad, Perry County KY 21% 21% Pore Pore Fluids Fluids as as a a % of of Pore Pore Volume, Volume, Cleveland Cleveland Shale Shale 45% 45% 34% 34% CLEVELAND SHALE Sw Sw Gas Gas Saturation Saturation Mobile Mobile Oil Oil Saturation Saturation LOWER HURON SHALE Porosity = 5.46 % Bulk Volume Gas Filled Porosity = 2.48% BV Bound Hydrocarbon = 7.57% BV Permeability = md Pore Pore Fluids Fluids as as a a % of of Pore Pore Volume, Volume, Lower Lower Huron Huron Shale 21% Shale 21% Sw Sw 24% 24% Gas Gas Saturation Saturation Mobile Mobile Oil Oil Saturation Saturation 55% 55% Porosity = 4.55 % Bulk Volume Gas Filled Porosity = 2.47% BV Bound Hydrocarbon = 5.26% BV Permeability = md

17 Cleveland Shale Mineralogy Hazard N. Quad, Perry County KY Whole Whole Rock Rock Mineralogy Mineralogy Cleveland Cleveland Shale Shale 46% NON 46% NON CLAY CLAY CLAY 54% CLAY 54% Non Non Clay Clay Mineralogy, Mineralogy, Cleveland Cleveland Shale Shale 2% 2% 6% 6% 14% 14% QUARTZ QUARTZ 6% 6% 72% 72% K-FELDSPAR K-FELDSPAR PLAGIOCLASE PLAGIOCLASE DOLOMITE DOLOMITE PYRITE PYRITE Clay Clay Mineralogy Mineralogy Cleveland Cleveland Shale Shale 3%5% 3%5% 25% 25% ILLITE/SMECTITE ILLITE/SMECTITE ILLITE+MICA ILLITE+MICA KAOLINITE KAOLINITE CHLORITE 67% CHLORITE 67%

18 Lower Huron Shale Mineralogy Hazard N. Quad, Perry County KY Whole Whole Rock Rock Mineralogy Mineralogy Lower Lower Huron Huron Shale Shale 41% NON 41% NON CLAY CLAY CLAY CLAY 59% 59% Non Non Clay Clay Mineralogy Mineralogy Lower Lower Huron Huron Shale Shale 14% 14% 3% QUARTZ 3% QUARTZ K-FELDSPAR K-FELDSPAR 11% PLAGIOCLASE 11% PLAGIOCLASE DOLOMITE DOLOMITE PYRITE PYRITE 11% 11% 61% 61% Clay Clay Mineralogy Mineralogy Lower Lower Huron Huron Shale Shale 2% 2% 6% 6% 26% 26% ILLITE/SMECTITE ILLITE/SMECTITE ILLITE+MICA ILLITE+MICA KAOLINITE KAOLINITE CHLORITE CHLORITE 66% 66%

19 N Induced Fracture Trend Map Data from FMI, Core, and Frac Jobs mi

20 Transverse Orientation - The wellbore is drilled perpendicular to the induced fracture trend in that area. -Links as many natural and induced fractures as possible. Longitudinal Orientation - The wellbore is drilled parallel to semi-parallel to the induced fracture trend in that area. -Possibly allows for easier fracture initiation?

21 Reservoir Modeling Shale Vertical Well Horizontal Well Bcfe/well Bcfe/well Rf = 8% Rf = 40%

22 Initial Borehole Geometry - Air drilling for low reservoir pressures total wellbore length (VS) 1800 lateral pay section degree build (8.5 degrees/100 ) - Case thru the curve (7 casing) - Drill transverse

23 ORIGINAL BOREHOLE GEOMETRY

24 Current Borehole Geometry - 10 degree build (10 degrees/100 ) - over 3000 lateral - no casing through the curve - EM Directional Tools have reduced costs

25 CURRENT BOREHOLE GEOMETRY

26 7" 20 ppf Casing Completions Open hole vs cemented lateral Only cemented 2 wells to date with below average results Cemented laterals are operationally challenging May be optimal to allow frac to go where it wants Completion tools Mechanical packer systems used in most open hole completions Operationally simple and reliable Sturdy can take abuse and still function properly

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28 N Horizontal Wells Drilled - EPC mi

29 Well Horizontal Cross Section Stacked Laterals / Perry Co., Ky Vertical Section IP 660 MCF/D 30 day 6.9 MMCF Wellpath Wellpath Top Berea Lower Huron Olentangy Top Little Lime Top Borden Top Cleveland TVD

30 Hazard Prospect /28/ /29/2006 BL/WE/DV /26/2005 BL/WE/DV /25/1974 BL/DV /3/ /8/ DV 3/31/2007 LHRN DV 11/25/ DV 12/20/ /31/1973 DV BL /23/1962 DV / /6/1973 D

31 Well Hazard North Quad IP 1393 MMCF 9 stage Foam Frac 13.2 MMCF 30 day rate 440 MCF/D Well Horizontal Cross Section 1500 Vertical Section Proposed Wellpath Top Berea Olentangy Top Borden Actual Wellpath Lower Huron Top Little Lime Top Cleveland TVD

32 Slice View Microseismic Events

33 Cross-Section with Frac Top and Barrier K Horizontal Cross Section Vertical Section Actual Wellpath Top Berea Top Cleveland Top Three Lick 4200 Est Top of Frac TVD 4400 Top Barrier Zone Top Lower Huron Top Olentangy Barrier Zone Frac Top 4600

34 Well Lower Huron IP 1500 MCF/D Natural 30 Day Rate 828 MCF/D 30 day cumulative 24.7 MMCF Horizontal Cross Section Lower Huron Wellpath Top Cleveland Olentangy Top Berea Lower Huron Gas - Mudlog 3000 Vertical Section TVD

35 63.6 KE UMX/BO 1989 BE/DV BE/DV 10/15/ /29/2002 BI/BE/DV DV 1/12/ Republic Steel Re-entry entry /1/ /11/1954 MX /13/2002 LEE/MX-BACKSIDE BL/BE/DV 3/31/2004 LMX/BE/DV /6/1999 BL/BE/DV /10/1992 UMX BE/DV BL-WO BE/DV 3/20/ /16/1989 BE/DV 9/22/1989 BE/DV /24/1955 DV BL/BE/DV 7/5/ DV 12/11/ /21/ DV 12/14/ /5/1992 BE/DV BL /16/ /17/2007 LHRN /9/1994 UMX BE/DV 7006 UMX BE/DV /10/1992 BE/DV BE/DV MX BE/DV1/5/1956 4/1/1955 BE /4/1967 BE LMX UMX 1/27/2006 BL/ 7 BL 11/19/2003 7

36 Well (Re-entry) IP 880 MCF/D Pike County, KY Natural Completion 30 day rate 417 MCF/D 30 day cumulative 12.8 MMCF Actual Wellpath Top Berea Olentangy Top Cleveland Lower Huron Gas - Mudlog Well Horizontal Cross Section Re-Entry 3500 Vertical Section TVD

37 Well # IP 2190 MCF/D 9 stage foam frac 30 day rate 786 MCF/d Mayking Quad 30 day prod 23.6 MMCF Well # Horizontal Cross Section 2600 Vertical Section TVD Proposed Wellpath Top Berea Olentangy Top Borden Base Cleveland Actual Wellpath Lower Huron Top Little Lime Top Cleveland Gas - Mudlog 100 0

38 Well # IP 386 MCF/D (SIP < 60 psi) Wayland Quad 30 day rate 420 MCF/D 8 stage Foam Frac 30 day cumulative 12.7 MMCF Well # Wayland Quad Horizontal Cross Section 2150 Vertical Section TVD Proposed Wellpath Top Berea Olentangy Top Borden Gas - Mudlog Actual Wellpath1000 Lower Huron Top Little Lime Top Cleveland 500 0

39 NET PAY ISOPACH: LOWER HURON SILT mi N CI: 2.5 Den/Neut X-Over Net Pay Isopach Lower Huron Silt CI: 2.5'

40 Horizontal Well Logan County, WV Target: Lower Huron Silt 7 stage N2 Frac 30 day rate 926 MCF/D 30 day cumulative 27.8 MMCF Wellpath Actual Top Target Java Lower Huron Base Target Mud Log Horizontal Well # Cross Section TVD Vertical Section

41 Logan County WV Evidence of Fracture Trends 5 MM 8 MM 5 MM 2 MM 3 MM Vertical Naturals

42 Logan County, WV Stacked Laterals LH Gas Show LHSilt Gas Show

43 N No Porosity in Berea ISOPACH BEREA NET POROSITY GR < 140 API, RhoB < 2.55 CI: 10' mi

44 Berea (567132) Lower Huron (566685) 30 day rate 2021 MCF/D (9 stage FF) 823 MCF/D (Natural) 30 day cumulative 64.8 MMCF 24.7 MMCF Horizontal Cross Section (Berea) (Lower Huron) Berea Wellpath Top Berea Lower Huron Gas - Mudlog Lower Huron Wellpath Top Cleveland Olentangy MudLog Berea Vertical Section TVD

45 Total Well Cost vs. TD Date Total Well Cost vs. TD Date $4,000,000 $3,500,000 $3,000,000 $2,500,000 $2,000,000 $1,500,000 $1,000,000 $500,000 $0 07/02/06 10/10/06 01/18/07 04/28/07 08/06/07 11/14/07 02/22/08 06/01/08 09/09/08

46 EUR vs. TIL Date EUR vs. TIL date 2,000,000 1,800,000 1,600,000 1,400,000 1,200,000 EUR 1,000, , , , , /21/06 10/10/06 11/29/06 01/18/07 03/09/07 04/28/07 06/17/07 08/06/07 09/25/07 11/14/07

47 30 Day IP vs. TD Date /02/06 10/10/06 01/18/07 04/28/07 08/06/07 11/14/07 02/22/08 06/01/08 09/09/08

48 Multi-Lateral Shale Wells Rf 50-60% Cost/well $ MM

49 FIRST MULTI-LATERAL Perry Co., KY 6555-ML ML ML ML Day IP 286 MCF/D 30 day cumulative 8.6 MMCF ft 6556

50 Stacked Multi-laterals laterals 4,500 to 5,000 Laterals 1,000-3,000 in length spacing 3,500

51 Dual Multilateral Wells Letcher Co., KY (Cleveland Shale) IP 1.9 MMCF/D (Lower Huron) IP 750 MCF/D ft Mudlog Show s CLVD ML ML ML ML ML ML ML ML ML ML Mudlog Shows LHRN

52 Approximate Drainage Area = acres

53 CHALLENGES - Control costs - Location size - Technology - Land costs - Title/Pooling - Services - Directional drillers/rigs/frac equipment

54 Benefits of Horizontal Drilling - Increase amount of reservoir open to the wellbore - Increased/faster recovery - Smaller footprint on the surface (Coal, Infrastructure Pipeline) -multiple stacked laterals from the same surface -Can possibly rejuvenate older declining fields

55 Multiple Locations from same wellpad Wells , , , Equitable Resources Matewan Quad Pike County Kentucky TVD Depth (feet) 0 Formation Tops (TVD) Base Fresh Water (1000') 1250 Lee Sands Pennington Maxton Sands (2000') 2250 Little Lime ' 2500 Big Lime Borden Berea Top Target Inside Berea 3340 (3000') Berea Bottom Devonian Shale Top ' 3500 Clevlenad Shale Top ' 2767' 4000 Lower Huron Top Target Inside Lower Huron 4250 Lower Huron Bottom

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58 Moving Ahead - Extend Testing Areas (Step-outs) - Additional Non-Shale Horizons Weir, Big Lime, Ravencliff, Devonian Sands - Marcellus Shale - CBM Play -Test Total Petroleum System (Non-organic shales) concept - Continue to refine technology and cut costs

59 Go Horizontal

60 Acknowledgements Equitable Resources Contributers Geology Tess Menotti, Katie Pankowski, Jim Pancake, Scott McCallum, Chris Chase, David Fowler Engineering Martin Puskar, Becky Barnes, Mike Kovarik