MDS Energy Development Announces Commencement of First Horizontal Wells

oil-well-operation_300x199MDS Energy Development, LLC

By MDS Energy Development

KITTANNING, Pa Nov 4, 2014 — MDS Energy Development (“MDS”) announced today that it has commenced drilling its first horizontal natural gas wells targeting the Marcellus Shale formation in Western Pennsylvania.  The vertical sections of three horizontal wells have been successfully completed by drilling rigs operated by MDS sister company First Class Energy, LLC on the “Ambrose Pad” in East Franklin Township, Armstrong County, Pennsylvania.   The wells are a joint venture between MDS and Snyder Brothers, Inc.

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

A horizontal drilling rig provided by Patterson-UTI (“NYSE: PTEN”) is scheduled to arrive the week of November 10th, which will drill the horizontal section of the three wells utilizing Baker-Hughes (“NYSE: BHI”) Rotary Steerable System technology.  The wells will be stimulated and put into production some time in 2015.

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