PennEnergy Resources is currently focused in Southwest Pennsylvania in the counties of Armstrong, Butler and Beaver. Since initiating our leasing efforts in 2011, we have built a consolidated shale acreage position of over 80,000 acres in our focus area. PennEnergy Resources brings a highly skilled team with local presence and expertise in the Appalachian Basin where we conservatively estimate we have nearly 1,000 horizontal locations in our core acreage position in multiple proven producing horizons.
Approximately half of our acreage is located in Southeast Butler County and Southwest Armstrong County where it is prospective for dry natural gas from the Marcellus Shale. As of July 2016, we are producing 22 Marcellus Shale wells from this project area. We have the ability to follow gas to multiple markets including Dominion Transmission, Columbia Transmission, and Texas Eastern’s M3 market area. EQT provides gathering and compression services to us in this area.
Our remaining oil and gas leasehold is located in Eastern Beaver County and Western Butler County. This acreage is prospective for three shale reservoirs, namely the Marcellus, Upper Devonian, and Utica Shale. As of July 2016, we are producing 12 liquids rich natural gas wells from the Marcellus and Upper Devonian Shale formations. This gas is gathered and compressed by Cardinal Midstream and transported to Markwest’s cryogenic gas processing plant near Evans City, Pennsylvania. This gas processing plant, known as “Bluestone” separates methane residue gas from natural gas liquids (NGLs) such as ethane, propane, normal and iso-butane, and natural gasoline. The residue gas from Bluestone is sold in markets along Dominion Transmission, Columbia Transmission, and Texas Eastern Pipeline. Our NGLs are sold to markets in the United States and Canada. PennEnergy Resources will also be one of 10 anchor shippers to Royal Dutch Shell’s ethane cracker plant in Beaver County. In addition, as of July 2016 we were producing dry natural gas from one Utica Shale well in this project area. This gas is sold into markets along Dominion Transmission.
We continue to seek and evaluate additional opportunities for unconventional shale development throughout the Appalachian Basin.