Studies and Production Estimates

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Unconventional Wells Drilled But Capped For Future Production 

 Drilled but capped wells have grown an average of only 16% from the start of 2010 thru June of 2012. By the end of June 2012, there were 1,377 capped but not producing wells. We expect this number to grow by the end of 2012. Up until June of 2012, capped production reached nearly 3.5 Bcf per day. This number is also expected to increase through the end of this year. A couple of the reasons for the continued steady growth are:

 low gas prices

 the need for unconventional producers from loosing lease holdings, many of which are expiring in 2013

The capped well inventory was 1,020 at the end of 2010. Through 2011, 79 % were placed into production leaving 21% or 245 wells still capped.

The capped well inventory was 1,175 at the end of 2011. Through June 2012, 58 % were placed into production leaving 42% or 494 wells still capped. As of June 2012, another 110 wells from 2011 have been put into production.

The distribution by county is heavily weighted to the Northern Tier and Southwestern Counties.  However, Bradford still has a significant number of wells capped since 2011. In addition, many of the counties on the boundary of the Marcellus formation have capped wells since before 2012.

For 2012, the Northern tier counties represent approximately 2,482,000 MMBtu/d or 73% of all capped volumes. The southwestern counties represent 577,000 MMBtu/d or 17% of all capped volumes. Combining the two areas represents 90% of all capped volumes.

Pipeline capacity recently installed in late 2012 or to be installed in 2013 is equal to approximately 5.6 Bcf/d. While this capacity should unlock a lot of the capped volumes, the capacity should be at its’ maximum level early in 2013 with additional wells being drilled.

Anticipated startup of natural gas transmission lines

Anticipated Startup gas lines

 

 

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