Tuesday, April 15, 2014

What's New in Ohio's Utica Shale

The April 12, 2014 release of Ohio Utica/Point Pleasant shale activity report showed twelve new permits issued for the week, dominated by XTO Energy with eight new permits, all in Belmont County. CNX Gas added three new permits, two in Monroe County and one in Noble County. Statoil came in with one new permit in Monroe county. A map of the newly permitted wells is found below.

New Permits issued week of April 6, 2014

Click for Large Map

The same report also showed a total of 141 wells drilling, up eight from the prior week. Belmont county again showed up as the biggest gainer in wells drilling, with thirteen wells drilling, up from just six in the prior week. A map of all wells classified as drilling is found below.

Wells classified as "Drilling" as of April  12, 2014

Click for Large Map

List summary of wells classified as "Drilling"


Thursday, April 10, 2014

Gulfport's April 9th Investor Presentation Details Utica Shale Position

Yesterday, Gulfport Energy Corporation released new details of their Utica Shale Investment. The company highlighted
  • A Utica production increase of 48.6% from Q3 to Q4 2013, 7.2 MBoepd in Q3  vs. 10.7  MBoepd in Q4. (Such increases are nice to see, though perhaps common given the ramp up phase that we are still in with respect to the Utica).
  • Forecast Utica Shale production of 44.5 to 54.5 MBoepd in 2014. (On the low side this would equate to a 315% increase in production (MBoepd) vs. Q4 2013, perhaps not too surprising given the pace of drilling and drilled wells coming online).
  • Continued delineation of the Utica and a focus on the "harvest phase"
  • Currently running seven rigs (According to the April 5th 2014 Ohio DNR report, these seven rigs are drilling six wells in Belmont county and seven wells in Harrison county).
  • Optimized wells completed with slick water fracture stimulation and managed through optimal flow program show an increase in BOEPD (Demonstrates continue improvement in recovery methods and similar to many operators that are looking to improve return through technology). Map Gulfport's current (as of April 5, 2014) drilling locations below.
The report also shows where Gulfport and many others believe the Utica Shale is producing the various types of hydrocarbons (oil, condensate, wet gas, dry gas) and highlights what Gulfport believes to be their premium acreage position. And finally, the report outlines the access to the all important infrastructure required to move and process extracted hydrocarbons.

The complete investor presentation can be downloaded here.

Gulfport's Drilling locations as of Apri 5, 2014.

Disclosure: The author of this article owns shares of Gulfport Energy

Wednesday, April 9, 2014

Utica/Point Pleasant - Drilling Activity by County

The April 5th 2014 update from the Ohio DNR shows 133 wells drilling in the Utica/Point Pleasant in Ohio. The map below shows drilling activity by county. According to Ohio State geologist Mike McCormac, the higher activity corresponds to the "wet gas" window, with dry gas to the east and a mostly unexplored oil window to the west.

CLICK map for larger view, Data Source: Ohio DNR 4/5/2014 report

And with a reported cost of 8-10 million dollars to drill each well, this activity equates to a big "bet" by the oil and gas operators on where they expect to get the best returns. This also indicates a level of de risking and confidence in return on investment. Many believe that we are in the early days so we should expect some cautious exploratory wells to appear away from this core area but there is a lot left to exploit in these core counties.

Monday, April 7, 2014

Utica Shale Ohio - Drilling up 32% from March 2014

According to the Ohio DNR Utica Shale activity report released today, the number of Utica Shale wells classified as drilling is up 31.7% from March 1st, up to 133 vs. 101. Chesapeake accounts for the bulk of the increase with 48 wells classified as drilling compared to 26 on March 1st.

A complete breakdown of wells classified as drilling:

Chesapeake (48)                 PDC Energy (5)
Gulfport Energy (13)            Eclipse (10)
Antero (26)                        Halcon (1)
HESS (4)                            Devon (1)             
HG Energy (5)                     EQT (2)
CNX Gas (4)                        Mountaineer (1)
Hall Drilling (3)                    Chevron (2)
American Energy (5)            Rex (1)                             
Triad Hunter (2)               

Click HERE for Large Version
Note: This LARGE map includes a blue "Filter" tab in the upper left that allows you to filter the map by any attribute including status, operator, county, township and more. Source: Ohio DNR

Monday, March 17, 2014

Utica Shale Activity Report, March 15, 2014

The latest Shale Well Drilling & Permitting report released by the Ohio DNR shows
  • Wells drilling increased by 10 to 113
  • Wells producing stands at 385, equal to last week's report
  • New permits for the week increased by 26: Hess (11, all in Harrison county), Gulfport (7 in Belmont county), Antero (4, Monroe and Noble County), and Chesapeake (4, Carroll, Columbiana, and Noble Counties)
Total wells drilling looks to be a record high.

Map of new permits issued week of March 10, 2014

Click here for Larger Map with Filters enabled

Utica Shale Rig Count - Where Does it Rank Against Other U.S. Basins?

Looking at the latest Rig Count numbers (March 14, 2014) from around the U.S helps to put Utica drilling activity in perspective.

U.S. Rig Count by Basin as of March 14,  2014 (Total = 1,809, Horizontal = 1212)*
 Horizontal Rig Count by Basins (Top 10)

- Permian (271)
- Eagle Ford (198)
- Williston / Bakken and Three Forks (168)
- Marcellus (72) 
- Mississippian (66)
- Granite Wash (52)
- DJ-Niobrara (50)
- Haynesville (43)
- Utica (37)
- Cana Woodfiord (31)

*Source: Baker Hughes US Rig Count by Basin, March 14, 2014

Friday, March 14, 2014

Utica Shale Ohio - Who is Drilling Where

As of March 8, 2014 there are 103 wells classified as drilling in the Ohio Utica Shale. Below is a click-able, zoom-able, map identifying the wells by location and other attributes (operator, well name, county, township, etc).

Click here for large Map with Filters Enabled