Marcellus Shale

What is it?

• A Devonian aged black shale that lies beneath the states of New York, Pennsylvania, West Virginia and Ohio.

• It is roughly 250 ft thick in some places to less than 50 ft in others.

• Located anywhere from a mile or more beneath the surface.

History of Marcellus Shale• Before 2003

– It was known this shale contained natural gas but it was not profitable as the rate of return was too low.

• 2003– First profitable well drilled by Range Resources using same hydraulic fracturing

and horizontal drilling methods used in Barnett Shale.• 2005

– Production first began in play and 375 wells had been permitted between 03’ and 05’.

• 2008– Estimates show that the Marcellus may contain around 500 trillion cubic feet of

gas with 10% of that being recoverable.• Present Day

– The Marcellus shale is now known to be one of the nations largest contributors to our natural gas supply.

Production Rates and Areas of Most Production

• NE and SW Pennsylvania have proven to be the most productive areas within the play.

• The counties of Susquehanna, Bradford, Greene and Washington is where the most recent activity is occuring.

• It is hard to tell how these wells decline curves will react and see what their overall production might be due to these well only have been producing for a few years.

Gas Leases and Mineral Rights

• The Marcellus Shale has made many people very wealthy including those who own the minerals in which operators target. Mineral rights owners have a few options in how they can make money off of their minerals.1. They can lease them out to operating companies which will in

turn pay them a monthly check based on the production of the well.

2. There are many companies that will buy your mineral rights outright so people won’t have to rely on a monthly check or fear a drop in natural gas prices. This process has been a good option for many because it is a safe way for a mineral rights owner to capitalize on their investment and all it takes to get a quote is a property submission.