Utica Shale

Chesapeake Energy Reports Three Utica Shale Completions

Chesapeake Energy (CHK) reported on three recent wells drilled into the Utica Shale on its properties in Ohio. 

The Brown 10H well drilled in Jefferson County, Ohio, had a peak production rate of 1,445 barrels of oil equivalent (BOE) per day, with 8.7 million cubic of natural gas per day.

The Bailey 3H well had a peak production rate of 1,420 BOE per day, composed of 205 barrels of oil, 270 barrels of natural gas liquids and 5.7 million cubic feet of natural gas.

The Snoddy 6H well had a peak production rate of 1,260 BOE per day, composed of 320 barrels of oil, 250 barrels of natural gas liquids and 4.2 million cubic feet of natural gas. The Snoddy 6H and Bailey 3H wells are both located in Carroll County, Ohio.

Chesapeake Energy has 1.3 million acres under lease and will have 16 rigs operating in the Utica Shale by the end of 2012.

Carrizo Oil and Gas Enters Utica Shale Joint Venture

Carrizo Oil and Gas (CRZO) formed a joint venture with Avista Capital Partners to purchase and develop leasehold that is prospective for the Utica Shale.  The venture is primarily looking for leasehold in the liquids portion of the play and recently closed on the acquisition of 15,000 net acres in Ohio and Pennsylvania at an average cost of $1,500 per acre.

Carrizo Oil and Gas will own an initial 10% interest in the joint venture but holds two purchase options to increase its interest to 50% over the next eighteen months. Carrizo Oil and Gas will also be the operator of the joint venture.