Utica Play Map
Top Well Results
June 10, 2015 |
Central Belmont, PA
Bigfoot: 40+ MMcf/d
June 3, 2015 |
Gulfport buying
$407 MM bolt-on
June 9, 2015 |
Stone Energy
30 MMcf/d Well
May 12, 2015 |
Antero Resources is the most active operator in Appalachia, running 16 rigs in Q1 2015. In the Utica, AR boasts 7.6 Tcfe of 3P reserves and 149,000 net acres in the core. As the slide above shows, the Utica dry gas window has been delineated in Ohio, Pennsylvania and West Virginia almost entirely by independents. Chevron is the sole super-major operator in the play. This map shows the play’s liquids-rich areas in Ohio with the Myron Unit 1H leading the pack with a 30-day IP of 4,467 boe/d (52% liquids). For the modelers among us, here’s a good slide providing base economics using Dec. 31, 2014 strip pricing. The dry gas window with EURs of 21.4Bcfe provides the highest RORs at 39%. Notably, Antero also has the distinction of having the largest gas hedge position for US independents (~$2.2 billion market-to-market at March 31). |
Rice Energy has built the company by focusing on the cores of the lowest break-even gas shale plays – Marcellus and Utica. As the slide above shows, Rice holds ~50,000 acres in central Belmont County, Ohio, where the Utica/Point Pleasant core at 9,500’ yields 40+ MMcf/d IPs of about 1,100 Btu gas. The position is largely de-risked with high porosity across Rice’s core position. As of May 1, 2015, Rice expected its first five operated wells to produce ~ 85 MMcf/d, with each well producing 5-8 Bcfe in the first year. At $1.79 realized (NYMEX $2.35) these wells return a 10% IRR. At Dec. 31, Rice had an impressive inventory in this de-risked block of 356 locations. Rice is also controlling a large part of its destiny by retaining key gathering and water-handling assets as well being early in securing firm transportation. |
On June 8, Gulfport Energy signed two deals with American Energy – Utica LLC for $407 million. The deals bring 35,325 net (50,113 gross) acres in the core dry gas area of the Utica. Of the $407 million, $52 million is for 15 MMcf/d, 9 net uncompleted wellbores and 2.3 net wells undergoing completion. $20 million is for a gas gathering system (at book value). Most of the acreage (29,127 net) is in Monroe County with an average NRI of 84%. These lands are 85% HBP by a 10-well/year drilling commitment. The remainder (6,198 acres) is in Jefferson and Belmont counties. As the slide above shows, the lands are contiguous and a natural bolt-on to GPOR’s existing acreage. Also, GPOR gets additional firm transportation of ~ 287 MMcf/d at $0.65/MMBtu building in volume through 2017. The firm transportation delivers to Hub neutral markets including Dawn, Midwest and the Gulf Coast. |
Stone Energy has successfully expanded beyond its legacy Gulf of Mexico talents to add the Utica/Marcellus as the second core area of the company. As the slide above shows, SGY has 35,000 net acres in the Utica with the 30 MMcfd/d Pribble well in Wetzel County ranking among the best results in the Utica. Currently during this “time out”, SGY is working on an optimal Utica development plan. Within SGY’s Utica position, near-term additional infrastructure by a plethora of midstreamers is expected to reduce gas differentials by expanding markets to the North, Midwest and Gulf Coast. Meanwhile, SGY is focusing efforts on its GOM deepwater program. Specifically, SGY will drill Cardona #6, complete Amethyst and prepare Pompano for more drilling. SGY's 2015 mid point guidance shows an 11%production growth and 252% RRR. |
