Underdeveloped Plays Show Promising Results to Supplement Growing Gas Demand.
The Appalachian Basin is entering a pivotal new phase of development, as operators unlock deeper resource potential, adapt development strategies, and position themselves to meet a long-term surge in natural gas demand. Once viewed as a mature basin with limited upside beyond the prolific Marcellus Shale, discussions at Hart Energy’s DUG Appalachia Conference highlight how Appalachia is now proving to be far more dynamic, both geologically and commercially. In this article we’ll use TGS Well Data Analytics to demonstrate that ventures into the deeper Utica and shallower Burket shale provide significant opportunity in the Appalachia to capitalize on stacked play zones with comparable or even superior results from the usual Marcellus and Utica zones.
Recent well results from southwestern Pennsylvania have placed the deep Utica Shale firmly in the spotlight. Figure 1 displays the locations of Utica wells deeper than 12,500 ft, showing significant room for continued development. After carefully watching the success of CNX Resource’s wells, Olympus Energy entered the play and achieved production rates of 20–25 MMcf/d from Utica wells targeting depths previously considered uneconomic. Figure 2 shows Olympus Energy with the leading type curve in this region, holding rates above 20 MMcf/d for an entire year. The Gas IP90 vs TVD plot in Figure 2 shows that the wells at 13,500 ft or deeper have stronger initial rates, highlighting how Olympus Energy is able to take advantage of deeper areas of the formation with extremely high pressure gradients, exceeding 0.9 psi/ft. In addition to being able to sustain high rates, drilling and completion costs have declined significantly, falling from approximately $2,700 to $1,850 per lateral foot, with continued optimization expected to push costs toward $1,600. While the total extent of this resource isn’t fully understood, Infinity Natural Resources (INR) CEO, Zach Arnold, is “anxiously awaiting the right time” to enter the play, as deep Utica wells have come within seven miles of INR’s acreage.
Figure 1. Deep Utica Pennsylvania Wells Colored by TGS Operator (>12,000 ft TVD)
Figure 2. Deep Utica 2-year Type Curve and TVD vs Gas IP90
Meanwhile, additional productivity is being realized from higher stratigraphic layers as well. In particular, PennEnergy Resources has made considerable progress in developing the Upper Devonian Burket Shale, which overlies the Marcellus across parts of western Pennsylvania. With approximately 450 operated wells producing over 600 MMcfe/d, PennEnergy aims to increase output to 900 MMcfe/d over the next five years. While the bulk of this production is from the Marcellus, Figure 3 shows that PennEnergy’s Burket wells have a very comparable type curve to the Marcellus and have been supplying approximately 200 MMcf/d since 2018. PennEnergy Resources President, Ben Bates, highlights that “when co-developed with the Marcellus, [utilizing] shared infrastructure and pad space, these [Burket] wells become an incredible opportunity to effectively double our wet gas inventory.” He goes on to explain that they have adjusted their completion strategy to lead with the Burket frac to create a pressure barrier that contains the lower frac in the Marcellus. This strategy has resulted in a 15% uplift in Marcellus well performance, demonstrating the technical and commercial merit of co-developing stacked pay zones in a coordinated manner.
Figure 3. PennEnergy Production Plots and Type Curves by Formation
These operational advancements are occurring against the backdrop of accelerating long-term natural gas demand. Industry leaders at the recent DUG Appalachia Conference emphasized the growing role of gas in supporting artificial intelligence infrastructure, data centers, electrification, and LNG export expansion. These structural drivers are creating a demand profile that could persist for decades, with Range Resources forecasting a potential doubling of Appalachian production to 7 Bcf/d by 2030. However, that growth trajectory faces a critical constraint: midstream infrastructure. According to Range Resources CEO Dennis Degner, the region’s ability to meet rising demand is directly dependent on the expansion of pipeline takeaway capacity, stating “we’re going to need a lot more infrastructure to think about how to meet the lofty projections by the tech sector, or whether it’s just meeting the demand for everyday people who are flipping the switches on.” Existing and proposed projects, such as the long-delayed Constitution Pipeline, will need to be expedited to prevent a bottleneck that could limit market access and stunt production growth.
The Appalachian Basin’s next chapter is clearly underway. Driven by a combination of subsurface potential, operational refinement, infrastructure pressure, and evolving market fundamentals, the region is once again demonstrating its central role in North America’s natural gas landscape. Strategic insight, supported by accurate and timely data, will be essential for stakeholders looking to navigate the opportunities and challenges ahead.
For more information about TGS Well Data Analytics or to schedule a demo, please contact us at WDPSales@tgs.com.
