- Combined daily production rate from two Upper Marcellus wells is 17 MMcf per day with 3% of flowback load recovered
NEW YORK, Aug. 18, 2015 (GLOBE NEWSWIRE) — Warren Resources, Inc. (WRES) today announced initial results from its well completion operations in the Upper Marcellus formation, located within its acreage block in Wyoming County, Pennsylvania.
Warren successfully drilled and set pipe for two Upper Marcellus wells in the first quarter of 2015, and completion operations commenced in July 2015. The two Upper Marcellus wells have been flowing back for approximately two weeks and the current combined daily production rate is 17 MMcf per day with 3% of flowback load recovered. The wells are drilled from Warren’s Mirabelli and Ruark pads.
Lance Peterson, Interim CEO, commented, “Warren’s first two Upper Marcellus wells were drilled with the intent to test a wide swath of our acreage block. Warren is very encouraged by the early results from these wells, and we expect to see these wells continue to clean up and experience increased flow rates. Our ‘core of the core’ acreage position in the Marcellus continues to provide significant growth opportunities for the Company and deliver value for Warren’s shareholders. I congratulate the team and all Warren employees for their hard work and commitment to the Company.”
A successful test of the Upper Marcellus could potentially add over 40 additional well locations on Warren’s acreage block. No reserves were booked at year end 2014 for the Upper Marcellus locations.
Warren’s drilling and completion efforts highlighted some attractive features of the Upper Marcellus formation in its acreage block. It is 180 feet thick, compared to the Lower Marcellus in the same area measuring 120 feet in thickness. Offset Lower Marcellus wells were monitored during fracturing operations and indicated no communication with the Upper Marcellus. The Company believes production rates and reserves associated with these wells will be 100% accretive.
In addition, Warren has the advantage of having pipeline infrastructure and pads already in place to support the drilling of additional wells in the Upper Marcellus, thereby eliminating time consuming infrastructure projects, and providing economic returns at lower realized gas prices.
Warren adhered to its strategy of driving operational efficiencies, with drilling costs for the two Upper Marcellus wells coming in 5% under budget and completion operations coming in 10% under budget. The Company sees an opportunity to reduce drilling and completion costs by 15% for future locations while maintaining exceptionally low lease operating expenses in the range of $0.75 per Mcf, including gathering and transportation costs.
About Warren Resources
Warren Resources, Inc. is an independent energy company engaged in the acquisition, exploration, development and production of domestic oil and natural gas reserves. Warren’s activities are primarily focused on oil in the Wilmington field in the Los Angeles Basin in California, natural gas in the Marcellus Shale in Pennsylvania, and an undeveloped acreage position in the Washakie Basin of Wyoming.
