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Ohio Utica Shale

Shale Tidbits 2: Gulfport Energy Corp.

By Bob Downing Published: March 2, 2014

Shale Tidbits 2 from Oklahoma-based Gulfport Energy, a major player in Ohio’s Utica shale:

From last week’s report to investors, conference call with analysts and statements by the company:

Company has 165,430 net acres in Utica shale in eastern Ohio. It says is has proved reserve of 32.35 net MMBOE and probable reserves of 36.46 net MMBOE.

It says 7 percent of its leased Utica land in eastern Ohio is in the oil window; 25 percent is in the condensate window; 20 percent is in the lucrative wet-gas window; and 48 percent is in the dry-gas window.

It is running seven rigs in the Utica. It spud 52 gross (30 net) wells in 2013. It expects to spend more than $400 million to drill 50 gross wells in 2014.

It calls the Utica “one of the most-promising up-and-coming plays in North America.”

Its horizontal wells produced 10,701 BOE/day in the fourth quarter 2013.

Company said Utica shale production increased 49 percent from the third quarter 2013 to the fourth quarter 2013.

Total company production grew by 152 percent in fourth quarter over fourth quarter 2012.

In 2013, the company grew production by 60 percent and it is projecting production growth of more than 300 percent in 2014.

Twelve wells were spud in the Utica shale in the fourth quarter 2013. Fourteen Utica wells came online in the quarter.

Company says it is focused on the “harvest phase” of the Utica shale in 2014. It said it intends to accelerate production in 2014.

Company officials said they intend to provide less well-to-well production information in the future.

Company has identified 1,048 potential Utica drilling locations.

The Utica produces nearly two thirds of the company’s total net production.

Company plans to drill 85 to 95 gross (64 to 71 net) wells in 2014.

It plans to spend about $600 million on capital expenditures in 2014.

Company says 1 Bcf per day of its natural  gas is expected to move west out of the Utica in 2014, growing to just over 2 Bcf per day in 2015.

Company says it has access to numerous shipping options.

Company has a joint venture agreement with Pennsylvania-based R ice Energy in four townships in Ohio’s Belmont County. That deal is in Washington, Wayne, Goshen and Smith townships.

It signed an agreement with Rhino Resources Partners  late last year to acquire an additional 8,200 net Utica acres  for $185 million.

Gulfport says it has boosted employment by 60 percent and 40 new staffers have been hired in Ohio.

It has added a new Ohio supervisory staff: Ross Kirtley joined Gulfport as chief operating officer of Ohio activities.

That appointment was made last September.

The company also brought in Rob Jones and Mark Malone as vice presidents of drilling and operations/Ohio, respectively.

Ty Peck was hired last November as a managing director of midstream in Ohio.

Top priorities are to improve efficiencies and to boost worker/environmental safety, the company said.

Company says it is testing slimming down the drilling hole to 7.875 inches.

The cost of the typical Gulfport Utica well is $9.5 million. The new dry-gas wells in eastern Ohio will be a little more expensive because they will be deeper and the pressures will be higher, the company said.

Company has signed an agreement with BP North America Gas and Power . That company will act as Gulfport’s natural gas marketer. It is contractually committed to flow assurances for Gulfport. Details of that agreement were not released.

The company intends to ship up to 500 dekatherms a day of natural gas to the Midwest starting in the spring and to the Gulf Coast later in the year. Another 100,000 dekatherms will soon to coming online.

Company intends to explore its dry gas options in the eastern Utica fairway. It is working with midstream company Mark West Energy Partners to get pipelines installed in a timely fashion.

Company is getting 55 percent liquids and 45 percent natural gas from Utica shale.

It has 10 wells that will be coming online very soon.

Cold temperatures in Ohio this winter caused minor problems, the company said.

The company expects to have four rigs in the Utica wet-gas window, two in the dry-gas window (starting in April) and one in the condensate window.

The company is proceeding to conduct a series of tests at its Darla wells in Ohio’s Harrison County. Three wells are involved.

Company is still searching for a new CEO. James Palm retired on Feb. 15.

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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.