August 31, 2010

The Marcellus might need fewer rigs than previously thought. At Enercom in Denver last week, Cabot Oil & Gas indicated that drilling on synthetic muds should lead to higher drilling efficiencies.  Consequently, the company believes it can work through its Marcellus program with fewer rigs. Pilot tests are expected to get underway this year.

Among other takeaways from Enercom reported in The Unconventional Drilling Report, Atlas is planning a 3 well exploratory program to kick off the new Collingwood shale play this year.  The wells will be drilled in three western counties of Michigan.  A rig was secured for the 3-well program; it has to be brought in from another area. The company didn't say, but a rig from the Marcellus region wouldn't be a total surprise, given the operator.

Also evident at Enercom were signs that the Montana Bakken is clearly gaining attention.  Brigham Exploration is active in Richland County.  One interesting nugget:  It appears the rock is harder in western areas of the Bakken.