Marcellus webinar to explore Pa. gas royalty calculations, decline curves

UNIVERSITY PARK, Pa. -- A Web-based seminar presented by Penn State Extension's Marcellus Education Team will focus on the calculation of natural gas royalties using decline curve projections.

The one-hour presentation, which begins at 1 p.m. on Thursday, April 17, will feature James Ladlee, associate director of the Penn State Marcellus Center for Outreach and Research and director of special initiatives for the University's Shale Training and Education Center. He will discuss his research to develop a tool that uses decline curves for Pennsylvania to estimate well revenues.

"With nearly 4,000 horizontal shale wells reporting production in Pennsylvania, we now have a clearer picture of possible cumulative production, potential royalty estimates and current spatial differences in unconventional shale production across the state," he said. "This Penn State version of a royalty calculator and production tracker will be released soon."

Mineral owners, landowners, professional service firms and the public are interested in determining financial revenues from gas wells, Ladlee noted. Royalty calculators based on well data from other shale plays, such as the Barnett formation, typically have been used to determine these projected revenues.

"But Marcellus well data is unique," he said. "With the high number of wells, there is enough data to provide more accurate royalty calculations."

Penn State Extension's Marcellus Education Team provides webinars at least monthly on a variety of topics. Upcoming webinars include the following:

-- May 8: "Macroeconomic Impacts of LNG Exports from the United States," based on a recently released report by presenter Sugandha Tuladhar, vice president, NERA Economic Consulting.

-- May 15: "World Oil and Gas Resources, Consumption, and New Trends, According to U.S. EIA," presented by Aloulou Fawzi, industry economist and project manager for the Energy Information Administration, U.S. Department of Energy.

-- June 19: "Utica and Point Pleasant -- Where Are We Now?" presented by Manuj Nikhanj, managing director and head of energy research, ITG Investment Research.

The webinars are free, but participants must register on the events page of the Penn State Extension Natural Gas website. The site also offers more information about future webinars.

Previous webinars, publications and information also are available on the Penn State Extension natural-gas website, covering a variety of topics, such as natural gas production and waste; oil and gas best practices; Pennsylvania's oil and gas law; the volume of gas in shale formations; seismic testing; air and water pollution; water use; natural gas liquids; royalties; gas-leasing considerations; gas pipelines and right-of-way issues; legal issues surrounding gas development; the impact of Marcellus gas development on forestland; reclamation of drill cuttings; and how shale-gas development is affecting land and property values.

For more information, contact Carol Loveland at 570-320-4429 or by email at cal24@psu.edu.

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Last Updated April 07, 2014