Recent well results and fourth-quarter production reports out of Ohio indicate that the Utica Shale is profitable with natural gas prices in the neighborhood of $3/Mcf, RBC Capital Markets LLC said in a research report March 5.
While activity in the shale has slowed with a 16% cut in rigs working the play, well results continue to improve, RBC said, particularly those of smaller drillers such as Antero Resources Corp., Gulfport Energy Corp. and Aubrey McClendon's privately held American Energy Partners LP.
"Antero's liquids-rich wells were again quite impressive, with 16 new wells averaging 2,284 [barrels of oil equivalent per day] (6% oil)," RBC analysts led by Leo Mariani wrote after reading the latest fourth-quarter Ohio production report, released Feb. 25 by the state's Department of Natural Resources.
RBC noted that 22 new Gulfport wells had fourth-quarter 2014 production of 1,367 boe/d, with 15% oil, and that "American Energy posted good results (8 wells at 886 Boepd, 44% oil), a 20% improvement" from the third quarter of 2014.
The best parts of the play for dry gas, according to RBC, are Belmont and Monroe counties. Magnum Hunter Resources Corp. has had the top-producing well for a year, Stalder Unit A 3-UH, which still produces 3,848 boe/d, or 23,088 Mcf/d, after a year in production in Monroe County.You can read more by clicking here.
Connect with us on Facebook and Twitter!