Gulfport's New Utica Shale Well is a "Monster" - UPDATED POST

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Update 11/29/12:  Two new articles highlight the amazing production of the Shugert 1-12H well and how Gulfport has been able to set a new bar for Utica shale production 3 times in the past few months.

First, from The Intelligencer/Wheeling News-Register (full article available by clicking here):
Global Hunter Securities - an investment bank focused on energy - is quite impressed with the results from this Belmont County well.
"The Shugert well is a monster and another positive event for Gulfport as the company continues to derisk its Utica acreage," Global Hunter analysts said in a statement regarding the well.
And then, from Energy in Depth (read the entire article here):
So how does Gulfport continue to produce such prolific wells in the Utica?  Jim Palm, CEO of Gulfport Energy, gave a little insight to how Gulfport has been so successful in the Utica at the DUG East Conference a few weeks ago in Pittsburgh.  When Gulfport first became interested in the Utica they employed the help of reservoir engineer Bill Von Gonten who helped them gain scientific understanding of the make up of the Utica
We learned some interesting things from Bill,” he said.  “Based upon some core information, Bill determined that the Eagle Ford and Point Pleasant are very similar reservoirs. You can see the porosity and permeability are very similar. One of the most important things is the calcite. These are very brittle formations, and that’s good because when the hydrocarbons are generated it’s like popping popcorn.- Jim Palm, CEO of Gulfport Energy
With Mr. Von Gonten’s help, Gulfport was able to determine short hydraulic fracturing intervals were essential to efficiently unlock the hydrocarbons out of the Utica.  Through out tedious research and simulations Gulfport and Mr. Von Gonten determined that 225 foot intervals were the most appropriate length between hydraulic fracturing stages in the Utica.
Intuitively it seemed pretty short, but he’s the scientist. That’s what he came up with, and so we decided to adopt that and it’s worked out real well.- Jim Palm CEO of Gulfport Energy
Gulfport says they will continue to hone their approach and try to get even better production out of their Utica wells going forward.

ORIGINAL ARTICLE FROM 11/28/12:
OKLAHOMA CITY, Nov. 27, 2012 (GLOBE NEWSWIRE) -- Gulfport Energy Corporation (Nasdaq:GPOR) today reported test results on its Shugert 1-12H well in the Utica Shale and announced first sales through the MarkWest Energy Partners, L.P. (NYSE:MWE) Harrison County gas processing complex.
Shugert 1-12 Results
  • Gulfport's Shugert 1-12H tested at an average sustained 18 hour rate of 28.5 million cubic feet ("MMCF") per day of natural gas, 300 barrels of condensate per day, and 2,907 barrels of natural gas liquids ("NGLs") per day assuming full ethane recovery and a natural gas shrink of 10%, or 7,482 barrels of oil equivalent ("BOE") per day.
Gulfport's Shugert 1-12H well was recently tested following the conclusion of its 60-day resting period. The well was flow tested over 48 hours, reaching an average sustained 18 hour rate of 28.5 MMCF per day of natural gas and 300 barrels of condensate per day on a 32/64" choke and a flowing casing pressure ("FCP") of 4,208 psi. Subsequent to the test, the 12 hour wellhead shut in casing pressure ("SICP") was 5,250 psi. Based upon composition analysis, the gas being produced is 1204 BTU rich gas.  Assuming full ethane recovery, the composition above is expected to produce an additional 102 barrels of NGLs per MMCF of natural gas and result in a natural gas shrink of 10%. In ethane rejection mode, the composition is expected to yield 41 barrels of NGLs per MMCF of natural gas and result in a natural gas shrink of 2%. Gulfport currently anticipates it will begin flowing the Shugert 1-12 H into a sales pipeline by the end of January.

To put that into context, the previous top dog of the Utica shale was Gulfport's Shugert 1-1H, which tested at a peak rate of 20.0 million cubic feet ("MMCF") per day of natural gas, 144 barrels of condensate per day, and 2,002 barrels of natural gas liquids ("NGLs") per day assuming full ethane recovery and a natural gas shrink of 17%, or 4,913 barrels of oil equivalent ("BOE") per day - which easily dwarfed the previous competition for best producer in the Utica Shale.

Read the rest of Gulfport's latest press release by clicking here.

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