In a past article, we examined decline curve theory and some of the factors which can influence the pace of production decline in a well. Today, we’ll look at actual well results and compare the productivity of West Virginia Marcellus wells located in two areas 50 miles apart.
It can be exceedingly difficult to compare horizontal well productivity in West Virginia for several reasons. First, NGL production wasn’t being reported to the WV DEP on many wells before the enactment of HB 4270 in 2018. Second, gross reported well production does not account for horizontal lateral length which obscures results from comparison.
As a part of our mineral management system, Marianna Consultants has developed an independent oil and gas well database, complete with lateral lengths based on actual permits, plats, and as-drilled surveys. This dataset includes more than 3,000 wells, allowing for comprehensive analysis of statewide production, adjusted for lateral length, giving us a true apples-to-apples comparison of production numbers.
Wells Selected
For this study, we picked a few of the OCC-A wells located in central Ohio County, WV along Dixon Run. We also chose a group of wells near West Union in Doddridge County, WV. All of the wells selected went into production in 2018, ensuring that we have NGL data available for all production months.
Ohio County, WV
- OCC-A OHI 5H (API: 4706900239)
- OCC-A OHI 205H (API: 4706900241)
- OCC-A OHI 405H (API: 4706900269)
Doddridge County, WV
- JIMMY UNIT 1H (API: 4701706838)
- JIMMY UNIT 2H (API: 4701706790)
- JIMMY UNIT 3H (API: 4701706839)
Comparison
Natural Gas
The OCC-A wells in Ohio County demonstrated significantly lower natural gas production compared to the Jimmy wells in Doddridge County. During the first year, the OCC-A wells produced an average of 176 MMcf per 1,000 feet of lateral length, while the Jimmy wells achieved an impressive 438 MMcf per 1,000 feet.
Over a five-year period, the performance gap remained substantial. The Jimmy wells averaged 937 MMcf per 1,000 feet, nearly double the 470 MMcf per 1,000 feet produced by the OCC-A wells. This highlights the superior natural gas output of the Jimmy wells.
Natural Gas Liquids
Although the chart above suggests similar NGL production between the two groups of wells, the OCC-A wells consistently reported NGL production every month, whereas the Jimmy wells only reported production every two or three months.
The data shows that cumulative production from the Ohio County OCC-A wells averaged 25,322 barrels of NGLs per 1,000 lateral feet during the first year. Over five years, this figure rose to 52,341 barrels per 1,000 lateral feet.
In comparison, the Doddridge County Jimmy wells averaged 8,947 barrels of NGLs per 1,000 lateral feet in the first year and 25,183 barrels per 1,000 lateral feet after five years.
Overall, the OCC-A wells have produced approximately twice as many NGLs as the Jimmy wells.
Oil / Condensate
The Doddridge County Jimmy wells averaged 2,130 barrels of oil / lease condensate per 1,000 lateral feet during their first year of production. Over five years, cumulative production increased slightly to 2,978 barrels per 1,000 lateral feet, indicating that the majority of oil production occurred in the initial year.
In contrast, the Ohio County OCC-A wells delivered significantly higher oil output, averaging 6,206 barrels per 1,000 lateral feet in the first year. Over five years, cumulative production reached 10,007 barrels per 1,000 lateral feet.
This comparison reveals that the OCC-A wells in Ohio County produced more than three times the oil and lease condensate of the Jimmy wells in Doddridge County.
Summary
Leveraging our comprehensive mineral management system, we conducted a detailed, well-to-well comparison by standardizing lateral lengths and production data. This approach ensures accurate insights into the performance of individual wells.
The Jimmy wells in Doddridge County excelled in natural gas production, showcasing their potential for higher gas yields. Meanwhile, the OCC-A wells in Ohio County demonstrated superior output in NGLs and oil/condensate, highlighting the variability of resources within the Marcellus formation.
For investors and mineral owners, these differences underline the importance of understanding the unique production characteristics of each well. At Marianna Consultants, our expertise in analyzing complex production data can help you uncover hidden value and make informed decisions to optimize your asset management.
Whether you’re evaluating current holdings or planning future investments, we provide the tools and insights needed to maximize your returns. Reach out to us today to learn how our services can benefit you.
