Energy Sponsor Drills First Horizontal Well

Direct energy sponsor, MDS Energy Development (MDS), recently announced that it has begun drilling its first horizontal wells targeting the Marcellus Shale formation in Western Pennsylvania.

“We are excited to be moving forward with our first horizontal Marcellus Shale wells,” says MDS president and chief executive officer Michael D. Snyder.

Horizontal wells travel parallel to the earth’s surface and along the formation. These wells allow drillers to gain access to targets unreachable vertically, reduce drilling footprints by hitting more of the target from one pad, and improve productivity by increasing the length of the pay zone.

This drilling technique has been around for some time and MDS launched in 2005. With all the potential benefits, why is this the company’s first horizontal well?

Be sure to read Who is MDS Energy Development, LLC?

“We have been waiting patiently for the technology and knowledge of the local geology to advance to the point where we felt comfortable deploying our investor’s capital,” says Snyder.

He added, “We have completed significant seismic testing and reviewed the results of wells offsetting our acreage position, with positive results. We’ve seen rig efficiency double in the last few years, and hydraulic fracturing and horizontal drilling contractors now have the knowledge of having completed nearly 10,000 wells here in the Marcellus. With 20-30 billion cubic feet of natural gas takeaway and new demand likely to come online in 2016 and 2017, we believe it’s a great time to move forward with our long-awaited horizontal drilling plans.”

Before a horizontal well is drilled, vertical sections are completed. First Class Energy, LLC, sister company to MDS, completed three vertical sections and once the Patterson-UTI (NYSE: PTEN) provided horizontal drilling rig arrives next week, the horizontal sections will be drilled utilizing Baker-Hughes (NYSE: BHI) Rotary Steerable System technology.

The wells, located in East Franklin Township, Pennsylvania, are a joint venture between MDS and Snyder Brothers, Inc., the largest privately held, self-funded natural gas producer in Pennsylvania.

Production is expected to begin sometime next year.

To learn more about MDS Energy Development, LLC, click here.