A Texas-based energy company said on Friday that it intends to determine how to best drill for oil in Stark and Tuscarawas counties in Ohio’s Utica shale.
EV Energy Partners said it is seeking to form one or more joint ventures with unnamed companies to determine the best way to get that oil to the surface, said executive chairman John B. Walker in a teleconference on first quarter 2013 earnings and operations.
Partners in developing the best completion techniques might include giant oil companies, well service companies and financial entities, he said.
It take one to two years to find the solution, he said.
"From our cores, logs and pressure kits, we know that some of the best rock in the Point Pleasant is in Tuscararawas and Stark counties," he said. "It’s over pressure, has excellent porosity, low water saturation and the highest total organic carbon or TOCs in the play. We need to learn how to get this volatile oil out in commercial quantities."
It took seven years for drillers to figure out how to tap the Bakken shale in North Dakota, but EV Energy Partners is confident that it won’t take that long in Ohio’s Utica shale.
"It has all the characteristics that shoud allow the volatile oil window to flow at commercial rates," he said.
Drillers have been focused on natural gas, oil and natural gas liquides (ehtane, butane and propane) in eastern Ohio.
Efforts to tap large oil deposits in Ohio have not been sucessful.
That makes the EV Energy Partners’ plan risky, Walker said.
His company owns mineral rights leases on about 62,000 acres in the two counties.
Not enough wells have been drilled in the potential oil area, he said.
Walker’s company is proceeding with plans to sell off much of its Utica acreage.
A number of offers have been made for EV Energy Partners leases especially in Carroll, Harrison, Guernsey and Noble counties, he said.
Offers have come from large and small companies but no deals have been completed, he said.
His firm has put about 104,000 acres in Ohio up for sale.
EV Energy Partners, based in Houston, has said it decided to sell off the leased land rather than invest the money to drill natural gas-oil wells itself. Each well can cost $6 million. Some have said the sales could bring in billions.
The firm is publicly traded arm of privately held EnerVest Ltd.
Walker’s company holds some of the most attractive Utica lands that are already producing natural gas, oil and natural gas liquids: ethane, butane and propane.
EnerVest is a partner with Chesapeake Energy Corp. and French energy company Total SA in drilling on 619,000 acres in 10 counties in eastern Ohio.
It is a key player in investing in pipelines and gas-processing facilities in eastern Ohio.
Chesapeake Energy Corp,the Oklahoma-based firm is the No. 1 driller in Ohio.
Rig Count Interactive Map by Baker Hughes, an energy services company.
Shale Sheet Fracking, a Youngstown Vindicator blog.
The Ohio Environmental Council, a statewide eco-group based in Columbus.
Earthjustice, a national eco-group.
People's Oil and Gas Collaborative-Ohio, a grass-roots group in Northeast Ohio.
Concerned Citizens of Medina County, a grass-roots group.
No Frack Ohio, a Columbus-based grass-roots group.
Fracking: Gas Drilling's Environmental Threat by ProPublica, an online journalism site.
Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.
Allegheny Front, environmental public radio for Western Pennsylvania.