State Report Shows Strong Utica Shale Production

Following the passage of House Bill 59 over the summer, Ohio moved to quarterly reporting for horizontal wells for Utica and Marcellus development to the Ohio Department of Natural Resources (ODNR).  Before House Bill 59, Ohio always reported on an annual basis.  Now with significant shale development, Ohio is providing more current production numbers for landowners and the general public to review.

For the first quarterly reporting Ohio saw strong production numbers coming from the wells online in eastern Ohio.  In total, the 245 wells produced 1.3 million barrels of oil and 33.6 million mcf of natural gas.  The average amount of time in production was 55 days.

This level of production was not lost on the local media, either. Here is a handful of headlines from the region discussing Ohio’s strong production numbers:

  • Antero, Gulfport, Chesapeake show big production numbers in new Ohio report,” Akron Beacon Journal

More specifically, the two big standouts both came from Gulfport Energy.  In the more natural gas rich portion of the play, the Stutzman well in BelmontCounty produced 1,249,739 mcf of natural gas during 89 days of production. Gulfport Energy’s other standout was its Boy Scout well in Harrison, which reported 41,617 barrels of oil/condensate and 135,524 mcf of natural gas during 70 days of production.

In addition to those standouts, Chesapeake Energy has also produced strong results in its Carroll and Harrison County wells. In fact, Chesapeake produced five of the top ten wells producing oil/condensate in the Utica formation.  Chesapeake’s position in the Utica is definitely promising as we continue to ramp up development in the region.

In terms of natural gas production, Belmont and MonroeCounties are home to the top ten producing natural gas in the Utica.  The wells were evenly split with Gulfport having five in Belmont County and Antero having five in Monroe County.

In the first quarterly report, ODNR listed 285 wells with 245 reporting production results. The remaining forty wells reported no production as they are waiting for pipeline infrastructure build-outs. That means the impressive production results already reported are easily an understatement of the region’s potential, as new pipelines and associated infrastructure (which create plenty of good jobs, too) will facilitate even more Utica production.

The majority of natural gas produced in the Utica is liquid rich, meaning the natural gas will have to go to regional processing complexes to extract the liquids, which include ethane, butane and propane. These products are the building blocks for a variety of consumer goods, including fabrics, plastics, medications, cosmetics and many other everyday products.  This processing creates an added revenue stream for many of these wells, which bodes well for both companies and landowners alike.

These numbers signify the Utica Shale is primed to be one of the premier shale plays in the United States.  In addition to producing great wells, Utica Shale development continues to keep unemployment down in eastern Ohio while creating a significant growth in sales tax revenues for the counties where activity is taking place.

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