Current ECR Stock Info

Centered in Eastern Ohio, Eclipse Resources (ticker: ECR) holds approximately 113,500 net acres in the Utica shale, with approximately 14,000 prospective net acres in the liquids rich Marcellus. The company entered the Utica play in 2011 and, since then, has drilled over 225 wells in the area.

Eclipse Resources Setting More Records with Super Lateral Wells

Source: Eclipse Resources

During Q1, 2017, Eclipse averaged 290 Mmcfe per day—which topped the company’s Q1, 2017 guidance of 275 to 280 Mmcfe per day. In light of the above-expected Q1 production, Eclipse increased its year-long guidance from between 305 and 315 Mmcfe per day to between 315 and 320 Mmcfe per day.

The company spent $78.7 million in capital expenditures, with $55 million dedicated to drilling and completions, $2.5 million for midstream expenses, $21 million for land expenditures, and the remaining $0.2 million for corporate expenses.

The “super-lateral” well

As of May, 2017 the company had drilled its “Super Lateral” well, appropriately named “Great Scott 3H.” The well was 27,400 feet, measured depth, with a 19,300 foot lateral—and was drilled in 17 days. In June, the company finished drilling another super lateral well with a measured depth of 27,750 feet, and a lateral length of 19,500 feet—making it the longest lateral well drilled in the U.S. to date.

As of June, the company also had completed a total of three 10,000-foot lateral wells in the Marcellus shale, with the intent to use them as condensate wells.

In total, the company drilled four gross (3.9 net) wells in the first quarter, and completed an additional seven wells. Five gross (4.7 net) wells were also turned to sales during the same quarter.

Enhanced completions

Eclipse has begun utilizing its “Gen3” completion design on its dry gas wells and the company expects that those wells will surpass the current type curve EUR which is 2.2 Bcfe per 1,000 lateral feet. On top of its Gen3 completion design, Eclipse has begun testing its Gen4 design on seven dry gas wells—the design incorporates tighter stage spacing, more proppant, and chemical diverters. The company expects that results from the Gen4 tests will be evident by the end of Q2,

Into and beyond 2017

Eclipse commenced drilling operations at the end of Q1 with its second operated rig. The rig is focused in the Utica condensate area. In the next three years, the company intends to drill an average of 19 wells per year, with an average lateral length of 13,000 feet. For later development, Eclipse has identified 316 future potential drilling locations.

Eclipse Resources is presenting at EnerCom’s The Oil & Gas Conference® 22

Eclipse will be a presenting company at the upcoming EnerCom conference in Denver, Colorado—The Oil & Gas Conference® 22.

The conference is EnerCom’s 22nd Denver-based oil and gas focused investor conference, bringing together publicly traded E&Ps and oilfield service and technology companies with institutional investors.  The conference will be at the Denver Downtown Westin Hotel, August 13-17, 2017. To register for The Oil & Gas Conference® 22 please visit the conference website.

Eclipse Resources Setting More Records with Super Lateral Wells

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