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.

Ohio Utica Shale Permit Update

The Ohio Department of Natural Resources issued an additional twenty four permits to drill into the Utica Shale and Point Pleasant formations.  This brings the total number of permits issued in the state to 78 horizontal and 59 stratigraphic (vertical) issued since December 2009. This data covers permits issued through December 7, 2011.

Chesapeake Energy (CHK) maintained the company’s status as a leader in the development of this new play and received nineteen permits:

Well Name	County	Township
Bucey 21-14-4 6H	Carroll	East
Bucey 21-14-4 5H	Carroll	East
Bailey 35-1254 1H	Carroll	Lee
Bailey 35-1254 3H	Carroll	Lee
Houyouse 15-13-5 6H	Carroll	Lee
Vahalik 18-11-1 6H	Jefferson	Springfield
Kate 4-10-4 8H	Tuscarawas	Wayne
Kate 4-10-4 8	Tuscarawas	Wayne
Ayrview Acres 27-16-5 5H	Columbiana	West
Ayrview Acres 27-16-5 1H	Columbiana	West
Ayrview Acres 27-16-5 3H	Columbiana	West
Ayrview Acres 27-16-5 3	Columbiana	West
Houyouse 15-13-5 1H	Carroll	Lee
Asuncion 15-11-3 6H	Jefferson	Ross
Asuncion 15-11-3 8H	Jefferson	Ross
Rowe 32-9-3 8	Jefferson	Wayne
Jarvis 4-17-4 6H	Mahoning	Goshen
Soehln 8H	Stark	Bethlehem
Soehln 8	Stark	Bethlehem

CNX Gas Company was issued a vertical and horizontal permit to drill the Hendricks MAHN2AHSU well into the Utica Shale.  This well is located in Ellsworth Township in Mahoning County. CNX Gas Company is a subsidiary of CONSOL Energy (CNX).

Anadarko Petroleum (APC) was issued two drilling horizontal permits to drill the FREC Guernsey Spencer A3H and Frec Guernsey Spencer A5H.  Both wells are located in Spencer Township in Guernsey County.

Gulfport Energy (GPOR) received the company’s first vertical permit and will drill the Wagner # 1 well in Athens Township in Harrison County

Four New Utica Shale Permits Issued In Ohio

There have been four new Utica Shale drilling permits issued by the Ohio Department of Natural Resources.

Date	County	Type	Operator	Well
8/18/2011	Columbiana	Vertical	Chesapeake	Weber 35-7-1 8
8/16/2011	Monroe	Vertical	HG Energy	Whitacre Enterprises  701 S-5H
8/16/2011	Tuscarawas	Horizontal	CNX Gas	Troyer Tusc3AHSU
8/16/2011	Tuscarawas	Vertical	CNX Gas	Troyer Tusc3AHSU

CNX Gas is the exploration and production arm of CONSOL Energy (CNX).  Ohio has now issued 53 permits to drill into the Utica Shale through 8/22/2011.  Chesapeake Energy (CHK) is far ahead of other operators and holds 43 of these permits.