Ohio Utica Shale Wells - Annual Production Report Due

The yearly report from Ohio on producing Utica / Point Pleasant shale wells should be published early next week. The report will contain data from approximately 48 wells, perhaps more, and note all wells that at one point were "producing" in 2012. Many wells were "production tested" and then went off production while awaiting transport (mostly pipeline infrastructure needed to transport the hydrocarbons for processing). When the report comes in there will be a great deal of analysis from investors and operators. Investors will look for encouraging production results that reflect growth potential from future wells. Operators will be keen to compare results and gain some additional insights for delineating the sweet spot of the play and the more promising acreage to begin to develop.

Chesapeake was the only operator with producing wells in 2011, making up all nine wells in the April 2012 production report released. This year Chesapeake will still dominate the report with approximately 32 wells, but will be joined by Anadarko, Antero Resources, Enervest, Gulfport and others. Gulfport Energy has revealed some production information already, even on wells that only started producing in 2013 and will not be included in the report.

Below are the current wells producing in the Utica / Point Pleasant formation. Many of the wells starting producing since January 1st of 2013 and will not be included in the 2012 report.


"Producing" Utica Wells (Ohio), by operator, Updated 3/23/2013 (Chesapeake-50, Anadarko-6, Gulfport-6, Antero-3, Enervest-3, HESS-3, Devon-2, HG Energy-1, Rex Energy-1, PDC-1, CNX Gas-1)  
(Zoom in to see all wells, some are very close together/share the same pad location)

Click to view LARGE Map

Feb 2 ODNR report - 15 wells drilling, 2 new wells producing

The February 2, 2013 Ohio Utica/Point Pleasant report from the Ohio DNR showed 15 wells classified as drilling in the Utica/Point Pleasant Shale, no change from the January 26 report. The difference is that the Devon Energy "Hershberger 1H" well located in Wayne County is now completed drilling. Replacing the Devon well on the drilling list is the CNX Gas Co. “Reserve Coal NBL33BHSU” well, just permitted Jan 11, 2013, and now in the drilling phase in Noble County according to the report (Ohio DNR, 2013). 

Two new wells were classified as producing since the January 26 report, Hess's CNXHAR9N5W 1H-24 well in Harrison County, and Devon's Hershberger 1H well located in Wayne County. The change brings the total wells producing from the 48 reported January 26 to 50 as of February 2.

2012 production reports due to be released around the end of March or first of April will be far more interesting this year. Last year the official release included 9 wells only. This year's report will include all wells capable of "producing" in 2013. This should include those wells that were drilled and production tested but not yet online and producing if I am correctly interpreting the Ohio DNR statement below. For example, Gulfport Energy has only two wells classified as producing in the February 2 report, but several other Gulfport wells were production tested and are awaiting transport. Gulfport shared production test data on nine wells in their latest investor presentation (Gulfport, 2013) . Details on the release schedule reported by the Ohio DNR Website are as follows with source reference below.

The law requires the owner of any well capable of producing oil and gas to report oil, gas and brine production data annually on each well to the Division by March 31 for the preceding calendar year (Ohio Revised Code Section 1509.11). Exempt domestic well owners are not required to file production statements.


Reference

Gulfport Energy. (2013, January 29). Investor presentation January 2013. Retrieved February 5, from http://files.shareholder.com/downloads/GPOR/2308075381x0x618743/14B146D8-623E-4FD3-B6BE-82CC350511C9/GPOR_InvestorPres.pdf

Ohio DNR. (2013, February 2). Oil and gas well and shale well development resources. Retrieved February 5, 2013 from http://www.ohiodnr.com/oil/shale/tabid/23174/Default.aspx

Ohio DNR. (n.d.). Oil and gas well production / RBDMS. Retrieved from http://www.ohiodnr.com/mineral/production/tabid/15389/Default.aspx

Utica Shale Ohio Permit Trend through January 2013

Utica/Point Pleasant Shale Permit activity in January 2013 rose from December 2013 (from 34 to 39 permits issued). November through December trend compared year over year, red line vs. green line.

Ohio Utica/Point Pleasant Shale permit activity trend. Ohio DNR data source.

Of the 39 new Ohio Utica/Point Pleasant Shale permits issued in January 2013
(Source, Feb 2, 2013,  Ohio DNR report)

• Chesapeake led with 19 new permits issued
• 13 in Carroll County
• 2 each in Columbiana, Harrison, and Jefferson counties
•  Hess came in with 6 new permits issued
• 4 in Guernsey county
• 1 in Harrison county
• 1 in Belmont county
• CNX Gas was next with 5 new permits issued
• 5 all in Noble county
• Gulfport Energy had 4 new permits issued
• 2 in Harrison county
• 2 in Belmont county
• Hilcorp Energy 2 new permits
• 1 in Columbiana county
• 1 in Mahoning county
• EQT, PDC, and Antero each had 1 new permit issued
• Guernsey County (EQT and PDC)
• Noble County (Antero)