Natural gas, and not oil, has turned out to be the dominant fossil fuel in Ohio's Utica Shale, a big disappointment to some in the industry. It prompted BP and Halcón Resources Corp. to abandon the play earlier this year.
But Aubrey McClendon's 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 recent briefing.
"The wells are so strong in the southeast that $4 gas is fine out there," said Jeanie Oudin, an analyst with Wood Mackenzie.
Domestic natural gas prices sank to record lows two years ago after shale gas supplies flooded the U.S. market, leading to a mass exodus of companies from gas fields. But Henry Hub natural gas prices rose to $6 per million British thermal units in February, and traded at $4.67 on Friday.The entire article is available by clicking here.
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