Utica Shale Activity Highlights: April 2015

Even though regional oil and gas volumes are expected to rise in 2015, continuing low oil and gas prices are causing a number of companies to either stop drilling or to scale back Utica Shale operations.

Gulfport Energy Corp. will devote 96% of its budget to develop the company’s Utica assets. Gulfport currently has four operated horizontal rigs drilling in the play but plans to release one of the rigs by the end of the first quarter.

EQT Corp. put its Utica drilling plans on hold in April 2014 following disappointing results from wells drilled by the company in Ohio.

Rice Energy Inc. is reducing its drilling budget by about $110 million. The company plans to spud 19 gross (12 net) horizontal Utica wells in Ohio and bring online 12 gross (seven net) horizontal Utica wells. Rice intends to release one Ohio rig at the end of its contract in mid-2015 and operate three horizontal rigs for the remainder of 2015.

Hess Corp. and partner Consol Energy Inc. intend to have a two-rig program in 2015, down from last year’s four-rig program. The companies’ drilling will be focused in the core of the wet gas window, with plans to bring 25-30 new wells online, compared with 39 new wells in 2014.

1. Seneca Resources Corp. 4/15/15

Results from a Seneca Resources Corp. Utica Shale discovery in Tioga County, Pa., were reported by IHS Inc. The #51038-73H DCNR 0007 had a 24-hour peak production rate of 22.7 MMcf of gas per day following a 30-stage fracture treatment. The well had a treatable lateral length of 4,640 ft. It was completed from a pad in the company’s DCNR 007 tract and was drilled to 18,241 ft, with a true vertical depth of 12,172 ft. According to the Houston-based company, the resource potential on this tract is about 1 Tcf.

2. American Energy Partners 3/4/15

American Energy Partners is drilling several Utica wells from a drill pad in Monroe County, Ohio. The #5H Gary N. Green was horizontally drilled to 15,337 ft and the company is waiting on tests—it bottomed a little more than a mile to the northwest. The #3H Gary N. Green is a 15,000-ft well that is slated to bottom to the northwest. Most of American Energy-Utica’s horizontal development took place in Belmont, Guernsey and Harrison counties. The Oklahoma City-based company has permitted or drilled more than 75 horizontal Utica tests in eastern Ohio since 2013.

3. Range Resources Corp. 2/24/15

According to Fort Worth, Texas-based Range Resources Corp., a Utica horizontal well in Washington County, Pa., initially flowed 59 MMcf/d of gas. The #11H Claysville Sportsman’s Unit is in Section 7, West Middletown 7.5 Quad, Donegal Township. After drilling the vertical pilot hole, the venture was drilled to 18,742 ft from an existing Marcellus Shale pad and has a true vertical depth of 11,693 ft. It was completed in a horizontal lateral after 32-stage fracturing. The well will remain shut in for approximately 90 days while facilities are completed.

4. Stone Energy Corp. 2/23/15

Lafayette, La.-based Stone Energy Corp. completed the company’s first horizontal Utica well in Wetzel County, W. Va. The #6HU Pribble is in Proctor District, New Martinsville 7.5 Quad. According to the company, the well had an average gas sales rate of about 30 MMcf/d. The peak rate occurred during the last 24 hours of a five-day test period. It had a projected depth of 10,980 ft and a reported true vertical depth of 11,360 ft. Production is from a 3,605-ft lateral. The producer was fractured in 17 stages with about 210 ft of spacing between each stage. It was tested on a 28/64-in. choke, and the flowing tubing pressure was 6,500 psi.

5. Gulfport Energy Corp. 2/20/15

Houston-based Gulfport Energy Corp. has received permits for three horizontal Utica tests in Noble County, Ohio. The #1A Brown 210044 is in Section 5, Beaver Township, and will be drilled from a pad with a proposed depth of 16,400 ft. From the same pad, #2B Brown 210044 and #3C Brown 210044 will be drilled to 16,800 ft and 18,000 ft, respectively. Across Gulfport’s Utica acreage, the company spudded 31 gross (26.4 net) wells during the third quarter of 2014. The operator is currently running eight rigs in the region. Since August 2014, Gulfport has increased its Utica acreage position, adding about 500 net acres, bringing the company’s position to 184,000 net acres under lease.

6. Magnum Hunter Resources Corp. 1/30/15

After a December 2014 blowout occurred at it Stalder pad, Houston-based, Magnum Hunter Resources Corp. expects that a lengthy shut-in will not be required. The incident occurred at #3H Stalder, which was drilled from the Stalder pad in Monroe County, Ohio. The well was brought under control and has been temporarily capped. Due to the gas content being about 97% methane, Magnum Hunter reported that there is currently no evidence of environmental damage to the immediate area as a result of the blowout. Additionally, no personnel were injured in connection with the well control operations on the pad. A new wellhead was installed and production remains shut in. The pad site will now be brought back to its original condition, and the company anticipates that all wells on the Stalder pad will be placed on production in January 2015. The #3UH Stalder is a Utica producer that was tested in February 2014 at a peak rate of 32.5 MMcf of gas per day. According to Magnum Hunter, there has been no damage to the overall structure or integrity of the well. In addition, the accident has not affected Magnum Hunter's three other Utica wells (#6UH, 7UH and 8UH Stalder), and the one Marcellus well #(2MH Stalder), all drilled from the same pad. Up to 18 horizontal tests could be drilled from the pad, which has been designed to drill 10 Marcellus wells and eight Utica wells.

7. Rice Energy Inc. 1/14/15

Rice Energy Inc. announced results from two Belmont County, Ohio, Utica completions in Smith Township. According to the Cannonsburg, Pa.-based company, #10H and 12H Blue Thunder are producing a combined 16 MMcfe/d under a restricted choke program in Barnesville Field. The horizontal producers have about 9,000-ft laterals and were spaced 500 ft apart. The flowing casing pressures are about 5,500 psi per well. The #10H Blue Thunder was drilled to an estimated depth of 20,796 ft and #12H Blue Thunder was drilled to an estimated depth of 20,454 ft. The operator is underway at two pads, Son-Uva-Digger and Gold Digger. Completion was expected by the end of 2014. In 2013, the company increased its core acreage position to 136,442 net acres by adding 6,879 acres in southwestern Pennsylvania and 3,044 net acres in Belmont County, Ohio.