Utica Shale

USGS Releases Assessment of Utica Shale

The U. S. Geological Survey (USGS) has released its first assessment of the Utica Shale in the United States and reported that this formation holds 38 trillion cubic feet of undiscovered, technically recoverable natural gas (mean estimate).

The USGS also said that the Utica Shale contains a mean of 940 million barrels of crude oil resources and 9 million barrels of natural gas liquids.  Although most industry development has been in Ohio and Pennsylvania, the survey also assessed the Upper Ordovician Utica Shale in Maryland, New York, Virginia, and West Virginia.

The estimated range of undiscovered resources is as follows:

Crude oil - 590 million barrels to 1.39 billion barrels

Natural gas - 21 to 61 TCF

Natural gas liquids - 4 to 16 million barrels

The USGS defines technically recoverable oil and gas resources as “those quantities of oil and gas producible using currently available technology and industry practices, regardless of economic or accessibility considerations.”  Here is a map of the area assessed by the USGS

Halcon Resources Reports On Utica Shale Operations In Ohio And Pennsylvania

Halcon Resources Corporation (NYSE:HK) plans to drill between four and six wells into the Utica Shale during the last six months of 2012.  The first two wells in this program will be spud in October 2012.

Halcon Resources Corporation has about 130,000 net acres prospective for the Utica Shale/Point Pleasant formation.  The leasehold is located in Trumbull and Mahoning Counties, Ohio, and Mercer, Venango and Crawford Counties, Pennsylvania.

Halcon Resources Corporation has obtained five drilling permits to date and expects to receive the other permits shortly.  The company plans to shut in Utica Shale wells for up to 60 days prior to putting them onto production.  The wells are shut in to enhance the long term recovery of hydrocarbons and the lack of infrastructure in the area to process and transport oil and gas.

Halcon Resources Corporation expects first production from the Utica Shale in the first quarter of 2013.

National Fuel Gas Company Updates Utica Shale Operations

National Fuel Gas Company (NYSE:NFG) reported the completion of two horizontal wells drilled into the Utica Shale in McKean and Forest counties in Pennsylvania.

National Fuel Gas Company said that both Utica Shale wells are shut in for 60 days and will be put onto sales in November 2012.  The company reported that Tionesta well in Forest County had all hydraulic fracturing stages completed successfully, while the Mt. Jewett well in McKean County had only three hydraulic fracturing stages completed successfully.  National Fuel Gas Company said that the problem with the Mt. Jewett well was unrelated to the quality of the reservoir.      

National Fuel Gas Company plans to drill the Owl’s Nest well into the Utica Shale in fiscal 2013.