CHAPTER 1 OVERVIEW OF MAJOR SHALE GAS PLAYS

JurisdictionUnited States
Development Issues in the Major Shale Plays
(Dec 2010)

CHAPTER 1
OVERVIEW OF MAJOR SHALE GAS PLAYS

J. Matthew Conrad
Marshall Miller & Associates, Inc.
Kingsport, Tennessee

J. MATTHEW CONRAD, P.G., is Senior Vice President, Oil & Gas Division, Marshall Miller & Associates, Inc., in Kingsport, Tennessee. He received his B.S. and M.S. in Geology (1984 and 1987) from West Virginia University. Mr. Conrad is a petroleum geologist with over 22 years of diverse exploration and development experience in conventional, shale gas and coaled methane (CBM) reservoirs. He has worked in a variety of geologic settings including CBM resource assessment and evaluation in most of the U.S. coal basins, Western Canada, and China. Mr. Conrad has gained significant practical work experience in CBM production and drilling in the central Appalachian Basin. As the project geologist for Equitable Production Company, he was involved in the initiation and development of the Nora CBM Field, Virginia, including the drilling of over 400 CBM wells. Mr. Conrad also has a wide range of work experience mapping conventional oil and gas reservoirs throughout the U.S. in several different basins. He currently oversees the Oil & Gas Division at MM&A. His primary responsibilities include supervising regional CBM evaluations, evaluating conventional oil & gas and shale gas properties, assisting in reserve evaluations, providing due diligence support for company acquisitions and developing new business opportunities. Over the last few years, Mr. Conrad has participated in over 30 Marcellus Shale geologic and reserve evaluations. He has over 25 technical publications and has given several presentations regarding Marcellus Shale development to various organizations. Mr. Conrad is a registered geologist in four states and is a member of the American Association of Petroleum Geologists and the Society of Petroleum Engineers.

Marshall Miller & Associates, Inc.

Energy & Mineral Resources Environmental Science & Energy

Overview of Major Shale Gas Plays

Presented to:

Rocky Mountain Mineral Law Foundation

Pittsburgh, Pennsylvania

December 6, 2010

Presented by:

J. Matthew Conrad, P.G.

Senior Vice President

Marshall Miller & Associates, Inc.

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Gas Shale Basins of the U.S. with Estimated Gas Reserves

U.S. 2010 Natural Gas Production Forecast

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Horizontal Drilling Technologies

❖ Recent advancements in drilling and completion practices have helped unlock potential of gas shale plays

❖ Exposes more of the organic shale horizons

❖ Allows more natural fractures to be intersected in wellbore

❖ Enhances initial production rates and ultimate gas recoveries

❖ Requires fewer wells to drain natural gas reserves

Barnett Shale

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Barnett Shale General Location Map Fort Worth Basin, Texas

Barnett Shale Generalized Stratigraphic Column

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Barnett Shale Thickness Isopach Map

Horizontal-Well Side View Fort Worth Basin

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Annual Barnett Shale Production History

University of Texas - Arlington Barnett Shale Development

Estimated $140 million in royalties to over 1,500 leaseholders

❖ 22-Horizontal Wells

❖ Producing 62 MMcf/d

❖ Field EUR: 110 Bcf

❖ 2.5-Acre Pad

❖ 1,100 acre drainage area

❖ $70 MM Drilling Cost

❖ Carrizo Oil & Gas

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Barnett Shale Play Summary

❖ Play initiated in 1991

❖ Horizontal drilling and completions technologies developed here

❖ Over 14,000 Barnett Shale wells drilled to date

❖ Reservoir depth: 5,400' - 9,600'

❖ Reservoir thickness: 100' - 600'

❖ Average horizontal reserves per well: 2.65 Bcf

❖ Basin area: 5,000 square miles

❖ Technically recoverable resources: 44 Tcf

Fayetteville Shale

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Fayetteville Shale General Location Map Arkoma Basin, Arkansas

Fayetteville Shale Generalized Stratigraphic Column

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Fayetteville Shale Well Locations Arkansas

Fayetteville Shale Outcrop Fayetteville, Arkansas

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Fayetteville Shale Operators with Cumulative...

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