Monday, August 20, 2012

Optimism Still Prevails Among Drillers

From the Canton Repository:
A bank of tanks in a former farm field on the south side of state Route 619 indicate the potential of an $8 million investment by EnerVest and EV Energy Partners.
The tanks are set up to collect natural gas liquids and oil produced by the Frank well, drilled earlier this year by EnerVest and EV Energy into the Utica shale. It was the first horizontal well to receive a permit in Stark County, although it took several months before drilling began.
Mark A. Houser, EV Energy’s chief executive officer and president, told industry observers last week that the well initially flowed at a rate of 515 barrels of oil equivalent per day. About 40 percent is light crude and another 40 percent is liquid natural gas.
Those rates indicate the Utica shale is flowing at commercial quantities, Houser said. “So overall we’re cautiously very encouraged by the initial rates from the oil window,” he told analysts during an Aug. 9 teleconference.
EnerVest and EV Energy along with Chesapeake Energy, Gulfport Energy and Antero Resources posted optimistic production reports on Utica shale wells when issuing second-quarter results earlier this month. Devon Energy wasn’t as optimistic, but its results are from wells drilled in Medina and Knox counties, two areas in the western sections of the shale formation.
Chesapeake also said it is keeping with plans to increase drilling the eastern Ohio. The company has been operating 11 rigs around the state, but intends to have 16 rigs drilling the Utica shale before the year ends.
Read the rest of the article here.

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