2. Arkansas Natural Gas History
1881 Ark Geological Survey est.
1887 First well in Scott County by Harry Kelly
1901 Mansfield Field
1927 Dr. Croneis published
1939 Ark Oil and Gas Commission est.

7. Arkansas Conventional Fairway
Current Avg rate 47 Mcfpd
700 MMcf avg reserves
Historically supplied 1% of US gas needs
5855 Inactive/plugged wells
4059 active wells

8. Max 0.5 Bcf/d
0.2 Bcfpd

12. Fayetteville Shale Development began in 2004
In top 10 largest gas fields in US
Economic impact in first 10 years ~ $18 Billion
Currently 5598 active wells / 218 inactive

15. Fayetteville Shale Current Avg rate 259 Mcfpd/well
Total current prod ~ 1.5 Bcf/day
Supplies 2% of US Nat Gas needs
SWN and BHP are selling

16. Max 3 Bcfpd
1.5 Bcf/d

17. Cumulative Fayetteville

18. Fayetteville Shale 2014 study Texas Bureau of Economic Geology
80 Tcf in place
38 Tcf Technically recoverable, 47%
~ 18 Tcf Economically recoverable
Est. 10,000 wells by 2030
Avg well reserves ~ 1.8 Bcf

21. Get with the curve

22. Overhead case study $3/mcf Nymex, $.25/mcf differential, 80% NRI
4% severance, $.30/mcf compression, 6% fuel
$400/month fixed – pumping, soap, EFM
$1000/month overhead
Cut Overhead to $0 at 500 mcf/month
10% annual production decline

25. Hanna’s Overhead Low Volume Discount
Wells between 500 – 1000 mcf/month will be 50% of normal overhead charges.
Wells less than 500 mcf/month will be 0% of normal overhead charges.

26. Thanks!
Zeroing out Overhead at 500 mcf per month: Adds 7 more years of production totaling 27 MMcf Adds $20k to cumulative net income