From EV Energy Partners, March 1
Chesapeake Energy and EnerVest have the largest blocks of acreage in the wet window of Ohio’s Utica shale.
EV Energy Partners intends to sell off 103,800 acres in at least nine Ohio counties. Multiple sales are likely. The company will announce each deal as it is signed, said executive chairman John B. Walker.
The process will likely take a month to the end of the year to complete, he said.
He said all existing wet gas pipelines in the Utica shale are full, awaiting the delayed started up of Dominion’s Natrium plant expansion in West Virginia.
Said Walker, “The Utica will just keep on giving.”
EV Energy Partners spent $75 million in 2012 to purchase Utica acreage to create more attractive packages that are now for sale.
The company intends to keep 73,500 acres in eastern Ohio and western Pennsylvania. That includes 16,000 non-operated acres in the joint venture area with Chesapeake and Total SA, the French energy company.
“That position has given us great insight into the Utica,” Walker said.
The company holds royalty interests on 880,000 acres in Ohio: 2.7 percent interest on 415,000 acres and 1.3 percent interest on 465,000 acres.
EV said its partner Chesapeake intends to drill 370 Utica wells in just the next two years.
Chesapeake has permitted more than 330 wells and has or is drilling 174 wells, mostly in the joint venture area.
A total of 133 JV wells have been drilled in 2012. An additional 240 JV wells are expected in 2013. Chesapeake has 15 rigs running in the first quarter and will have 16 running in Ohio in the rest of the year. A total of 36 wells that EnerVest has an interest are shut in, awaiting processing capacity.
Each well with a 5,000-foot horizontal lateral requires about 138 acres, the company said.
The company said its Cairns well in Carroll County is “a good well.”
It is producing 864 MCF a day of natural gas, plus 168 barrels of natural gas liquids and 200 barrels of oil. That is equal to 512 barrels of oil equivalents per day. That rate came after 90 days
That is comparable to a Rex Energy well with 424 BOES in nearby Carroll County after 90 days, EV Energy Partners said.
The company is still working on pipelines for the Cairns and other wells in Carroll County.
EV Energy Partners said it expects to spend $230 million to $250 million this year on two Ohio midstream projects. It marks the company’s first involvement in midstream.
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.