Utica Shale

CONSOL Energy To Spend $50 million In Utica Shale In 2012

CONSOL Energy (CNX) approved a $1.7 billion capital budget for 2012 and plans to spend $50 million in the Utica Shale, up from only $3 million in 2011.  The funds will be used to drill 11 net wells during the year.  CONSOL Energy estimates that the company’s drilling in the Utica Shale through 2015 will be:

2012 – 11 net wells

2013 – 27 net wells

2014 – 33 net wells

2015 – 33 net wells

CONSOL Energy said that in 2012, all the Utica Shale wells will be drilled in the oil window or wet gas area of the play.  CONSOL Energy is involved in a joint venture with Hess Corporation (HES) in the Utica Shale.

Anadarko Petroleum Receives First Utica Shale Well Permit

Anadarko Petroleum (APC) has received a drilling permit for the company’s first Utica Shale well in Ohio.

On September 7, 2011, Anadarko Petroleum received a permit to drill the Frec Guer Spencer A1 vertical well in Spencer Township in Guernsey County.  The company received a permit for the Frec Guer Spencer A1H, which is the horizontal portion of the well, on September 12, 2011.

The permits were issued by the Ohio Department of Natural Resources and bring the number of permitted Utica Shale wells to 43 horizontal wells and 27 stratigraphic wells.

Anadarko Petroleum hasn’t disclosed any exposure to the Utica Shale in any of its official marketing presentations.  The company is very active in the onshore United States and is allocating 45% of its 2011 capital budget of $6.2 billion to $6.6 billion to the onshore.

Anadarko Petroleum is active in the Marcellus Shale but according to its latest presentation only has acreage in Pennsylvania. 

CONSOL Energy - Utica Shale Summary

CONSOL Energy (CNX) is active in the exploration and development of the Utica Shale and has 200,000 net acres under lease in Ohio that is prospective for this play.  The company also has additional acreage in Pennsylvania and West Virginia that has exposure to the Utica Shale.

In October 2010, CONSOL Energy reported the results of the company’s first well into the Utica Shale.  The Barnesville #1 well was drilled and completed in Belmont County, Ohio, and produced 1.5 million cubic feet of natural gas per day during a test period. 

The Barnesville #1 Utica Shale well was a vertical well and was not stimulated and this accounted for the low production.  The company plans six additional Utica Shale test wells in 2011 at a cost of $35 million.