Utica Shale

Chesapeake Energy Updates Utica Shale Operations

Chesapeake Energy (CHK) disclosed an operational update on its activity in Ohio where the company has a large development program targeting the Utica Shale.  The company is operating 12 rigs here and estimates that it will have 16 rigs by the end of 2012 on its 1.3 million net acres.  

Chesapeake Energy has drilled a total of 87 wells to date into the Utica Shale and has 28 wells waiting on completion or on pipeline.  The company signed a joint venture with Total (NYSE:TOT) to help with development here and has $1.35 billion left on the original drilling carry.  Chesapeake Energy expects the remainder of the funds to be used by the end of 2014.

Chesapeake Energy - Utica Shale Summary

Chesapeake Energy (CHK) is the largest operator in the Utica Shale and has 1.3 million acres under lease.  The company is operating 10 rigs and plans to average 13 rigs in 2012 and 22 rigs in 2013.

Chesapeake Energy has drilled 59 wells into the Utica Shale:

Producing – 9 wells

Undergoing completion – 15 wells

Waiting for completion – 15 wells

Waiting on Pipeline – 20 wells

Chesapeake Energy’s most productive Utica Shale well is the Buell 8H well in Harrison County, Ohio, which produced at a peak rate above 3,000 barrels of oil equivalent (BOE) per day in September 2011.  The company estimates that the Buell 8H well will have an estimated ultimate recovery (EUR) of 575,000 barrels of liquids and 13 bcf of natural gas.

Gulfport Energy Updates Utica Shale Drilling Program

Gulfport Energy (GPOR) reported that the company has reached total depth on three horizontal wells drilled into the Utica Shale.

The Wagner 1-28H well found 123 feet of pay in the Utica Shale/Point Pleasant formation and was completed with a 28 stage hydraulic fracturing operation.  Gulfport Energy plans to wait 60 days before flowing the well.

The Boy Scout 1-33H well was drilled with a 7,974 foot lateral and found 126 feet of pay in the Utica Shale/Point Pleasant formation.  The well is currently undergoing hydraulic fracturing operations.

The Groh 1-12H was drilled with a 5,414 foot horizontal lateral and is waiting on completion operations.  The well found approximately 119 feet of net Utica Shale/Point Pleasant pay.

Gulfport Energy is operating two rigs in the Utica Shale and plans to drill at least two additional horizontal Utica Shale wells in 2012.