Natural gas, and not oil, has turned out to be the dominant fossil fuel in Ohio’s Utica Shale, a big disappointment to the industry that prompted BP and Halcón Resources to abandon the play earlier this year.
But Aubrey McClendon’s new wildcatting venture American Energy Partners and a handful of players are racing to snap up land in the southeastern corner of the play, where operators have found wet gas and high-performing, affordable wells that rival some in the core of the Marcellus Shale, an analyst said at a press briefing last week.
“The wells are so strong in the southeast that $4 gas is fine out there,” said Jeanie Oudin, an analyst with Wood Mackenzie.
Domestic gas prices sank to record lows two years ago after shale gas supplies flooded U.S. markets, leading to a mass exodus of companies from gas fields. But Henry Hub natural gas prices rose to $6 per million British thermal unit in February, and traded around $4.72 on Thursday.Click here to read more from this article.
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