Random Update Of The Appalachian Gas Field -- Incredible -- January 21, 2018

I wouldn't post / link this except for the fact I've had a very loyal reader who has been pointing this out for the past two years. From oilprice, the world's most innovate gas field -- Appalachian gas. Some data points:

• Appalachian gas production has surged over 85% since 2014
• produces more gas than all other shale plays in the US combined
• a late of pipeline projects finally coming on line in 2018
• huge and unexpected divergence between rig count and total gas output (is rig count relevant any more?)
• production per well continued to increase; has now set a record: 26,027 mcf/day (record set last month)
• a new Marcellus gas well today yields almost twice as much gas as the same with well with similar latitude/longitude in Hanynesville field, East Texas, the second largest producing gas region in the US
• now drilling super laterals -- as long as 20,000 feet long
• multi-well pad now the standard; typical pad currently expect to contain a dozen wells
• "walking" rigs; takes just a few days as opposed to months to complete a well all the while achieving 50% increase in efficiency
• latest example: Eclipse Resources drilled a Utica well in less than 17 days; length exceeding 19,000 feet
• cost of an average well has dropped from $1.2 million in 2011 to $300,000 currently
• the expected IRR for a 12-well pad with 12,000 feet lateral exceeds 100%
• the expected IRR for a 5-well pad with 5,500 feet lateral barely breaks 70% mark

Much more at the link.