Shale Daily / NGI All News Access

National Fuel Gathering System Online in Pennsylvania

National Fuel Gas Midstream Corp. (NFG Midstream), a unit of National Fuel Gas Co., said its Trout Run Gathering System in Lycoming County, PA, was recently placed in service and is delivering gas to an interconnect with Transcontinental Gas Pipe Line Co. LLC (Transco). Initial production is from four recently completed wells operated by Seneca Resources Corp., a subsidiary of National Fuel.

The Trout Run system consists of 25 miles of mostly 20-inch diameter high-pressure pipeline, associated facilities and an interconnection with Transco. Trout Run is designed to serve Marcellus producers, anchored by Seneca, with capacity exceeding 450 MMcf/d. Additional facilities and gathering lines will be constructed as throughput increases, National Fuel said.

"The initial results from these wells confirm our belief that this acreage holds significant potential and will help drive production growth throughout the next several years," said National Fuel CEO David F. Smith. "Additionally, with our two major gathering systems completed in Pennsylvania, we have built a foundation from which NFG Midstream can continue to expand its operations for not only Seneca, but other Appalachian producers as well."

As part of the completion of Trout Run, Seneca initiated production on a four-well pad on its DCNR 100 tract in Lycoming County. As of June 11, these four wells were producing at a combined rate of about 45 MMcf/d. Peak 24-hour production rates ranged 10.1-15.7 MMcf/d. The wells were drilled with lateral lengths of 5,224-8,574 feet. A three-well pad is currently being completed and two Seneca-operated drilling rigs are active in the area. In addition to the four wells currently flowing into Trout Run, the tract has approximately 65 additional well locations, National Fuel said.

In March Seneca said it had curtailed some Marcellus production, delayed some well completion activities there and might not participate in some joint venture wells with partner EOG Resources Inc. because of low natural gas prices (see Shale Daily, March 27).

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