Could the Utica Shale Play Be the Best in the U.S.?
From The Motley Fool:
Former Chesapeake Energy (NYSE: CHK) CEO Aubrey McClendon is well known for making some very bold claims about Ohio's Utica Shale. He thought the play would end up being similar to Texas' Eagle Ford Shale, but it would be economically superior to that play. Initial development of the play hasn't shown that to be true. Is that about to change?
It turns out the Utica is just saturated with a vast amount of recoverable natural gas and natural gas liquids. While it doesn't contain the high levels of oil of the Bakken or Eagle Ford, the amount of gas that can be extracted on a barrel of oil equivalent, or BOE, basis per well rivals or exceeds these two oil rich plays. This is one of the reasons why McClendon chose to return to the play with his new venture.
To see what I mean, take a look at the following slide from Magnum Hunter Resources(NYSE: MHR) . I want to draw attention to the last line of the slide, which is the estimated ultimate recoveries, or EUR per well.