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Ohio Utica Shale

Natural gas production jumps sharply in Ohio, Chesapeake says

By Bob Downing Published: November 6, 2013

Natural gas production from Ohio’s Utica shale is starting to boom, according to the reshaped and trimmer Chesapeake Energy Corp.

Natural gas production in the Utica shale grew 91 percent from the second quarter 2013 to the third quarter, the company said on Wednesday in a third-quarter earnings and production call with analysts.

The company’s Utica wells are averaging 164 million cubic feet of natural gas equivalent per day, the company said.

"We anticipate our growth (in 2014) will be led by an increase in oil production from the Eagle Ford shale and an increase in natural gas and natural gas liquids from the Utica and Marcellus shales, which will benefit from new gas processing and pipeline takeaway capacity," said company chief executive officer Doug Lawler.

Chesapeake is the No. 1 player in Ohio’s Utica shale.

To date, the Oklahoma-based energy giant has drilled 377 wells in the Utica that covers eastern Ohio and spills over into western Pennsylvania and West Virginia. That includes 169 producing wells and 208 wells waiting on pipeline connections or in various stages of completion.

In the third quarter, Chesapeake operated 11 drilling rigs in the Utica shale and connected 63 wells to sales, it reported.

The average peak daily production for those 63 wells was about 6.6 million cubic feet of natural gas equivalents per day, the company said.

Chesapeake has encountered minor problems in Ohio since Blue Racer Midstream’s gas-processing plant in Natrium, W. Va., was closed by a Sept. 21 fire, Lawler said. But that closure should not have a major long-term impact, he said.

The company made no announcement on non-core lease holdings in Ohio and elsewhere that Chesapeake is offering for sale. That includes 510,847 gross acres (337,481 net acres) in 19 Ohio counties including Summit, Portage, Stark and Wayne.

Nationwide, Chesapeake’s daily average daily production totalled 3 billion cubic feet of natural gas and 178,500 barrels of liquids (oil and natural gas liquids). Oil production was up 4 percent and natural gas liquids increased 12 percent over the previous quarter. Natural gas production dropped 3 percent in that time.

The company operated 67 rigs and invested $1.2 billion in the third quarter in drilling and completion activities. That is a drop of $350 million from the second quarter.

Chesapeake is is the midst of redefining itself and has trimmed 20 percent of its exploration-production work force. It has scaled back some drilling operations and expenditures.

Financial discipline and operational efficiencies are the company’s new keywords, Lawler said.



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Utica and Marcellus shale web sites

Ohio Department of Natural Resources' Division of Oil and Gas Resources Management State agency Web site.

ODNR Division of Oil and Gas Resources Management. State drilling permits. List is updated weekly.

ODNR Division of Geological Survey.

Ohio Environmental Protection Agency.

Ohio State University Extension.

Ohio Farm Bureau.

Ohio Oil and Gas Association, a Granville-based group that represents 1,500 Ohio energy-related companies.

Ohio Oil & Gas Energy Education Program.

Energy In Depth, a trade group.

Marcellus and Utica Shale Resource Center by Ohio law firm Bricker & Eckler.

Utica Shale, a compilation of Utica shale activities.

Landman Report Card, a site that looks at companies involved in gas and oil leases.FracFocus, a compilation of chemicals used in fracking individual wells as reported voluntarily by some drillers.

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.

National Geographic's The Great Shale Rush.

The Ohio Environmental Council, a statewide eco-group based in Columbus.

Buckeye Forest Council.

Earthjustice, a national eco-group.

Stop Fracking Ohio.

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.

Penn State Marcellus Center.

Pipeline, blog from Pittsburgh Post-Gazette on Marcellus shale drilling.

Allegheny Front, environmental public radio for Western Pennsylvania.