Presented by Tom Murphy, Penn State Cooperative Extension, Lycoming County August 2008

1. Presented by Tom Murphy, Penn State Cooperative Extension, Lycoming County August 2008

4. Black Shale Resource Plays in North America Black Shale Resource Plays E&P Magazine, 3/2007, p. 77

6. Early Mississippian 360 MYA North American Structural Suture is zipped in the Appalachian Basin. The Acadian Orogeny is over. The onset of the Ouachita Orogeny triggers Barnett Black Shale Deposition. Modified from AAPG Bull. 4/2007, p. 584

7. WEST EAST Ohio Shale Marcellus Shale PHASE THREE – Erosion of highlands rapidly fills shallowing basin, Trough and Bulge features migrate further west. Rhinestreet Shale Bulge and Trough Migrate West PHASE TWO–Collision ends and NA Plate rebounds. Deep, Anoxic, Sediment Starved Basin shallows and both Bulge and Trough migrate westward. Rhinestreet Shale Overriding African Plate Peripheral Bulge Cincinnati Arch Proximal Trough PHASE ONE – Initial Collision - African Plate Overrides and Depresses NA Plate – Generating a very Deep, Anoxic, Sediment Starved Basin Termed a Proximal Trough and associated Peripheral Bulge. Marcellus Shale

8. Marcellus Shale near Washingtonville

9. In the Appalachian Basin - Head East Towards the Allegheny Front where the Thickest Accumulations of Marcellus Organic Rich Shale were deposited in the proximal trough... • Because the Marcellus was deposited early in the collision… … less sediment input led to Higher TOC’s

10. Big Sandy Field – WV and Kentucky • Discovered 1915 - 2.5 TCF of production • Natural Fracture System - Maximizes Production • Minimal Stimulation • Newark East Field – Fort Worth Basin • Discovered 1981 - 3 TCF of production • Induced Fracture System – Maximizes Production • Maximum Stimulation

11. Newark East Field Mississippian Barnett Shale Disc. 1981 Big Sandy Field Devonian Black Shale - Disc. 1915 North American Structural Suture Modified from AAPG Explorer 4/2007 p. 10

12. High gas yields • High success rates for drilled wells • Close spacing of wells • Long distance to market • Pipeline capacity, transportation cost

13. Barnett Shale may be the largest natural gas field developed to date in the continental U.S. • New technologies in horizontal drilling and hydraulic fracturing developed there

14. Although separated by 30 my in time, the Marcellus and Barnett Shale were generated by a similar depositional system and tectonic setting. • Both the Marcellus and Barnett Shale were the initial sediments deposited in a very deep, sediment starved, trough…

15. Seismic a Critical Link

16. Additional 3-D Seismic Needed to Determine Potential Drilling Locations

18. Drilling in Speculative Areas of the State

19. Cost per well -- $2 to 4 Million+ • Yields vary between horizontally or vertically drilled wells • 0.5 to 4.0 IP Mmcfe and improving • vs. 2.0 to 6.0 IP in Barnett Shales of TX

20. Still an area of interest • Deep wells • High cost • Very speculative • Very high pressure/high yields • Other shale formations?? Utica, Huron, etc

21. Good potential yields • Close to market • Increasing interest from multiple companies --competition • Increased financial rewards for rural landowners • *Some permanent changes to landscape

22. FLARING OFF GAS