Analyst Takes a Look at Realities of Utica Shale Play So Far

From SNL:
Companies hoping the Utica Shale would be the next big liquids play could be in for a disappointment as many wells are proving to be a source of dry gas, a Wood Mackenzie analyst said June 4. 
In a discussion of the play, Jeanie Oudin said that while the Utica is producing approximately 1 Bcf/d worth of gas currently, that total could reach 5 Bcf/d by 2018. Capital expenditures in the play for this year, she said, are approximately $8 billion, $2 billion less than the larger Marcellus Shale. 
"They're learning from the lessons taught in the Marcellus, including teaming with midstream companies in advance," she said. 
Oudin said Chesapeake Energy Corp., which was the first company to drill in the Utica, remains the "dominant player" in the shale, with approximately one of every two wells permitted. Other major players, she said, include Gulfport Energy Corp., Antero Resources Corp. and Rice Energy Inc. 
Former Chesapeake CEO Aubrey McClendon — whose new endeavor, American Energy Partners LP, has purchased 600,000 acres in the play — thought the Utica could be liquids-heavy; instead, the majority of wells have been gas-dominated wells.
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