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Utica Shale Update

Friday, December 7, 2012 by

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By KRISTY FOSTER SEACHRIST

kfoster@farmanddairy.com

SALEM, Ohio — Gulfport Energy Corporation reported the most impressive Utica shale well results of all wells reporting in Ohio to date. And it’s clear from the amount of permits issued, the company is confident it will find more success.

Shugert well

Gulfport reported Nov. 28 the results of the Shugert well in Harrison County.

Gulfport’s Shugert 1-12H tested at an average sustained 18-hour rate of 28.5 million cubic feet (MMCF) per day of natural gas, 300 barrels of condensate per day, and 2,907 barrels of natural gas liquids (NGLs) per day assuming full ethane recovery and a natural gas shrink of 10 percent — or 7,482 barrels of oil equivalent per day.

Gulfport currently anticipates it will begin flowing the Shugert materials into a sales pipeline by the end of January.

November permits

According to the Ohio Department of Natural Resources Utica shale permitting report, there were five permits issued to Gulfport during November.

Chesapeake Exploration received nine permits, and CNX Gas Corporation was issued five permits. Two permits were issued to Antero Reserve Appalachian Corporation and one to Enervest Operations. Halcon, a company with no previous Utica shale permits, received one in Hartford Township in Trumbull County.

Belmont County

In Belmont County, one permit in Somerset Township was issued to Gulfport Energy Corporation

Carroll County

A total of seven were issued in Carroll County: two in Union Township; three in East Township; one each in Loudon and Washington townships. All of them were issued to Chesapeake Exploration, according to the ODNR.

Columbiana County

In Columbiana County: a permit was issued in both Fairfield and Elkrun townships, submitted by Chesapeake Exploration.

Harrison County

Harrison County remains a hot spot for Gulfport Energy Corporation, with three permits issued in Washington Township and one issued in Stock Township.

Noble County

In Noble County, five permits were issued, with two granted to Antero Reserve Appalachian Corporation in Seneca and Center townships, according to the ODNR. Three permits were issued to CNX Gas Corporation and one in Olive Township to Enervest Operations.

Tuscarawas County

Three permits were granted to CNX Gas Corporation in Tuscarawas County for sites to be drilled in Bucks Township.

Gas complex unit

Now that the wells are being drilled, the next step is processing the gas for the consumer. MarkWest Energy Partners, L.P. announced Nov. 28 the first sales from its Harrison County gas processing complex.

MarkWest Utica EMG. L.L.C. a joint venture between MarkWest Energy Partners, L.P. and The Energy and Minerals Group together with Gulfport, started operations of the interim 60 MMCF per day Cadiz refrigeration plant in Harrison County.

This facility is supported by production from Gulfport’s Wagner well and Boy Scout well. MarkWest Utica’s partnership with Gulfport includes the development of midstream infrastructure in Harrison, Guernsey, and Belmont counties.

In addition to the Cadiz refrigeration plant and initial gathering pipelines, MarkWest Utica is constructing a 125 MMcf/d cryogenic processing plant, Cadiz I, which is expected to be completed by the first quarter of 2013.

Utica well update

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Farm and Dairy, a weekly newspaper located in Salem, Ohio, has been reporting on topics that interest farmers and landowners since 1914. Through the Shale Gas Reporter, we are dedicated to giving our readers unbiased and reliable information on shale gas development.

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