In July I had the opportunity to check off a long-time bucket list item….attending

the annual Oshkosh Fly-in and Air Convention with one of my sons. What a week!

I’m not a pilot but have been enthused about planes and aviation since I was a

boy. The annual Oshkosh event provides an aviation fix like no other venue.

More than 10, 000 planes participated, at times making the Oshkosh control

tower the busiest in the world. Planes included hundreds of home-builts,

warbirds, and vintage aircraft. Daily airshows were varied and thrilling, including

an amazingly detailed re-enactment (with literally tons of pyrotechnics) of the

attack and defense of Pearl Harbor in honor of that event’s 75th anniversary.

The photo above shows one of many jaw-dropping airshow acts. This 1929

modified Waco biplane, sponsored by Jack Link’s Beef Jerky and named the

“Screamin’ Sasquatch,” is powered by a Pratt & Whitney Radial Engine and a

General Electric J85 Jet Engine with 3000 lbs thrust. When the plane first comes

into view only the radial is powering the aircraft; then the jet engine springs to life

and the little biplane roars like an F-16. It does maneuvers at speeds and with

sounds you just don’t associate with a vintage plane. It was mind-boggling.

What has this to do with the state of our oil and gas industry? Nothing directly,

but it reminded me of how creative and ingenious we humans can be. Are we

applying all of our creative ingenuity to tackling issues of when to drill, where to

drill, best field and shop safety practices, capital and data management, water

disposal, bartering services, and effective use of contractors and consultants. If a

1929 biplane can be brought into the jet-age, what can be done to economically

revive our oldest wells? Tough times scream for ingenious solutions.

In this issue

Creative Ingenuity P.1 2016 Conv. Permits P.2

In the Spotlight P.3 GeoGraphix Training p.4

Logging Assists p.5 (Resistivity Logs)

Positions Wanted p. 6

About this Newsletter

“The Conventional Operator” is a

free, bimonthly publication of

StratResources Geologic Consulting,

LLC distributed via email. You may

forward the newsletter to anyone

you think would be interested.

Comments are welcome. If at any

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subject or message box.

Cary Kuminecz CPG, PG is President/

Owner of StratResources Geologic

Consulting, LLC which provides

prospect generation, geologic

property evaluation, and well log

scanning & digitization services for

the oil & gas industry and

landowners. For more information

and for past issues of this newsletter

please visit:

www.stratresourcesgc.com

The Conventional Operator

Bi-Monthly Newsletter for Operators Exploring & Developing Conventional Oil & Gas Plays in Pennsylvania

ISSUE 10 SEP 2016

Creative Ingenuity

Source: Sam Kuminecz, Stick & Shutter Photography, 2016

Screamin’ Sasquatch

2

Conventional Well Permits - Pennsylvania (2015—2016)

Only 20 conventional wells were permitted or

renewed in Pennsylvania during July and August

compared to 24 during May and June. This brings

the cumulative total of conventional well permits

for 2016 to 99. That is 179 fewer permits issued for

the same time period in 2015 and almost 673 fewer

than for the same period in 2014. With two-thirds

of the year behind us, the year-end projection for

total conventional permits in 2016 is approximately

150.

Oil well permits comprise 61 percent of the

conventional permits to data; gas wells make up 25

percent of the permits; combination oil & gas wells

make up the remainder with 14 percent.

The breakout of 2016 conventional permits by

county is shown in the table on the right.

Permitting Continues to Slow its Pace

County No. Permits % of Total

Warren 40 40.4

McKean 21 21.2

Lycoming 9 9.1

Susquehanna 6 6.1

Forest 5 5.1

Allegheny 4 4.0

Armstrong 4 4.0

Washington 4 4.0

Greene 2 2.0

Butler 1 1.0

Clarion 1 1.0

Fayette 1 1.0

Venango 1 1.0

Total 99 100.0

0

50

100

150

200

250

300

350

400

450

0

10

20

30

40

50

60

70

80

90

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Cum

ulat

ive

No.

of C

onve

ntio

nal

Perm

its

No.

of C

onve

ntio

nal

Perm

its p

er m

onth

2015 Conventional Well Permits

2016 Conventional Well Permits

2015 Cumulative Conv Permits

2016 Cumulative Well Permits

Pennsylvania DEPNew or Renewed

Conventional Well Permits

Data Source: PADEP

3

Success Stories, News, Announcements

Producer’s Monthly Journal

Progress is being made on planning how to get the

past issues of Producer’s Monthly scanned and made

available digitally to operators for a small fee. This

journal was published by the Bradford District of the

Pennsylvania Oil Producers Association from

approximately 1936 to 1968. I’ve used a few articles

in the past which had invaluable core data, log

analysis, and test results from wells in the Northern

District oil fields in primary production or waterflood

operations. Most of the cores are long gone, but the

data is preserved in the journal. This is data that can

be used to calibrate porosity logs, create porosity-

permeability correlation curves, and to document oil

and gas saturations. All of this can assist operators

and investors in judging the potential of properties.

The Penn-Brad Oil Museum is planning to scan the

approximately 30 years of issues they have on hand.

The goal is to use OCR software as part of the

scanning process so that the scans can be searched

by keywords, greatly facilitating the use of the journal

and its data. The actual work will be handled through

the University of Pittsburgh at Bradford, using a paid

intern. The Museum estimates the cost of the project

to be about $5000, but they do not have the funding

to go forward. They are looking into grants but will

gratefully accept your tax deductible donations. Any

checks should be designated to go to the Producers

Monthly Scanning Fund. Questions can be emailed

to Harvey Golubock using golubock@optonline.net.

I certainly endorse this project and hope enough of us

can donate the funds to make this a reality.

LMKR/GeoGraphix announces

training classes in its various

Oil & Gas mapping and data analysis modules for

September and October (see their schedule on Page 4

of this newsletter). As a beneficiary of past training, I

can attest to its direct usefulness to prospecting in

conventional as well as unconventional plays. The

training classes are well organized, relatively small in

size, and conducted professionally by a GeoGraphix

instructor. If your company uses GeoGraphix, now,

while drilling is slow, is a good time to make sure your

staff is fully trained in using its capabilities.

Registration and course descriptions can be found at

http://www.lmkr.com/trainings/geographix.asp

StratResources Geologic

Consulting, LLC announces a

new service for operators.

StratResources has acquired a stereo microscope and

oil fluoroscope (UV light box), both used to describe

and analyze your drill cuttings for oil cut and stain.

Results of the cuttings analysis will be displayed on a

strip log using a 5”/100’ vertical scale to directly

compare to your well logs. The strip log will contain a

description of the lithology of the cuttings by depth

and the nature of any oil shows within them with

respect to oil presence, abundance, and gravity.

Catching samples every 10 feet while drilling is

preferable, but samples caught every 30 feet can also

be used and provide valuable data. The fresher the

samples are the more data they can reveal. Contact

me at cpkgeology@verizon.net if interested.

4

5

The total resistivity measured by a logging tool is dependent on the amount of formation water freely present

in the pores of the rock or adsorbed onto clay minerals (total Sw) , the formation water’s chemical makeup, the

resistivity of the formation water (Rw), and the porosity of the rock (phi or φ). The total resistivity of a

formation several feet from the borehole is known as the “true resisitivity” (RT) as it is unaffected by near

wellbore changes in fluid saturations caused by the drilling process. It follows that since RT depends on Sw

then Sw depends on RT (along with φ, Rw, and a few constants). So, why spend the money to include a

resistivity tool on the logging string? To be able to calculate water saturation (Sw). This is not all that can be

done with resistivity tools, but it is their most important function.

In the 1940s, Shell petrophysicist, G.E. Archie, derived what is known as the Archie Equation for calculating Sw

in sandstones and limestones. The equation can be written in several forms with a common format being:

Sw = [ (a/φm) * (Rw/RT)](1/n), where a, m, and n are constants that can have different values from formation to

formation but usually vary around the values 1, 2, and 2, respectively, in Upper Devonian sandstones. The

equation shows, that without the resistivity measurement, the water saturation can’t be determined. In air-

drilled holes with no fluid in the wellbore across the formations of interest, the resistivity tool (along with

neutron porosity and bulk density measurements) will also allow calculation of gas and oil saturations (Sg and

So). In which well below would you feel comfortable notching and fracing the same formation given the log

analysis results shown (assuming equal thicknesses and bottom hole pressures)?

Well A Well B Well C

φ = 10% φ = 10% φ = 10%

RT = 85 Ωm RT = 25 Ωm RT = unknown (resistivity not run)

Sw = 28.7% Sw = 52.9% Sw = unknown (resistivity not run)

I hope you picked Well A. In Upper Devonian sandstones it has been my experience that if calculated Sw is

above 40%, mobile formation waters may be extensively produced, may block your oil or gas in the reservoir,

and will likely increase your lease costs related to water disposal. In Well C, without the resistivity log the

operator has to rely on knowing the production in offset wells; something that is not always available. Even

knowing the production in offset wells doesn’t guarantee that fracing the formation in this well will find

equivalent production or even equivalent fluids. So, at the risk of sounding like your Aunt Polly who reminded

you to eat your vegetables, please run the resistivity tool in every well you drill. In the next issue we’ll look at

the types of resistivity tools, when to run them, and what they tell you.

Well Logging Assists

Most issues of The Conventional Operator will devote an article to

tips and advice regarding collecting and using well log data.

Topic #10 - Resistivity Logs—Why Run Them?

6

Geologist: Over seven years of experience in natural gas exploration and development.

Background in shale evaluation, well planning, seismic interpretation, geosteering, GIS

and environmental science.

Contact: l.husser019@gmail.com for details and visit http://tinyurl.com/HusserResume

for resume.

Attorney/Land Manager: Seasoned attorney and land manager with more than 32 years

experience in the oil and gas industry. Excellent litigation, management, contract,

writing, negotiating and title skills. For more information contact Michael Colmerauer at

colmerauerm@gmail.com or by phone at (716) 649-0875

To have your information included in Positions Wanted in the next

issue, email cpkgeology@verizon.net. This service is free.

Positions Wanted

Geologist: Experienced in geologic and geochemical research, field work, and

publication writing with M.S. in Geology and B.S. in Environmental Science. Work has

focused on geochemistry and petrophysics of unconventional hydrocarbon reservoirs

while working with the National Energy Technology Lab. Experienced using GeoGraphix

to interpret TOC content of Marcellus and Burket Shale gamma ray logs. Looking for a

position that can combine experience in geology and environmental science.

Contact: Matt Dietrerich at www.MDieterichPhoto.com or at 412-680-6408

7

Providing Geologic Consulting Services to the

Oil & Gas Industry and Landowners

Oil & Gas Prospect Generation

Evaluation of Properties for Water Injection or Disposal

Acreage Hydrocarbon Assessments/Property Risk Management Assessment

Quantitative Well Log Analysis

Core Descriptions

Analysis of Drillers’ Cuttings

Well Log Quality Control at the Wellsite

Volumetric Reserve Estimates

Oil & Gas Data Compilations and Reporting

Subsurface Geologic Reports/Interpretation of 3rd Party Reports

Conversion of Paper Well Logs into Raster Format (TIF) or Vector Format (LAS) Files

Training Classes in Stratigraphy of the Northern Appalachian Basin

www.stratresourcesgc.com