American Oil and Gas Reporter - August 2018 - 106

SpecialReport: Marcellus/Utica Activity Profile
Ohio Utica
Oklahoma City-based Ascent Resources
has 210,000 acres, all in Ohio, in what
Yankowsky describes as "one of the best
positions in the Utica." The company announced in June that it had entered into
definitive agreements to acquire certain
natural gas and oil properties from Hess
Corporation, CNX Resources, Utica Minerals Development, and a fourth undisclosed
seller for a combined price of $1.5 billion.
That deal is to close at the end of August.
"This is a significant acquisition,"
Yankowsky observes. "We will have more
than 310,000 acres after Sept. 1."
He says the acquisition will provide Ascent with greater capital efficiency, including
the ability to drill longer laterals, as well as
complement its existing assets and increase
the company's exposure to liquids.
"We will get a lot more 'blocky' on
pad development," he adds. "It provides
additional running room as well."
Among the highlights of the acquisition
are 113,400 net leasehold acres and royalty
interests on 69,400 fee mineral acres,
spanning all three hydrocarbon windows
in the overpressured core of the Utica
Shale, along with 93 operated wells and
net production of 216 million cubic feet
equivalent a day (19 percent liquids),

more than 380 gross incremental horizontal
well locations and a larger working interest
in more than 90 gross horizontal well locations, and proved reserves and total resources of 1.1 trillion and 5.6 trillion
cubic feet equivalent, respectively.
In making the announcement, Ascent
Chairman and Chief Executive Officer
Jeff Fisher commented, "These accretive,
bolt-on acquisitions are a milestone for
the company and have been made possible
by our outstanding operational success
in the Utica Shale."
Top Producer
Ascent Resources is running seven
rigs and four fracture/stimulation crews
in Belmont, Jefferson, Guernsey and
northern Monroe counties, Oh.
According to Yankowsky, the Ohio
Department of Natural Resources listed
Ascent as the number one gas producer
in the state for first quarter 2018, as well
as first in gas equivalent and third in
crude oil production. "We have 30 of the
top 40 gas wells in Ohio," he lauds. "And
we have drilled 12 of the top 40 oil wells."
Yankowsky says Ascent drills a minimum of three wells and usually three-six
wells per pad, which provides a number
of advantages.

"That allows us to spread the full
pad cost over several wells," he states.
"We can skid the rig and walk it over to
the next well in a few hours. It also
allows us to perform zipper fracs. We
average fracturing seven stages a day,
and we have done as many as 12. We
can perform wireline operations on one
well while we are fracturing another.
With optimized volumes from multiple
wells on the pad, we can right-size our
facilities accordingly."
Ascent averages 12,000-foot laterals,
according to Yankowsky, although it has
drilled laterals as long as 16,500 feet and
plans to drill several laterals longer than
15,000 feet this year.
He says the company has come "leaps
and bounds" in its technological advancements, including using fiber optic
technology that allows it to evaluate
how its fracture stimulation is working
in real time.
Yankowsky notes that Ascent is utilizing approximately 150-foot stage length
spacing in its dry gas wells and somewhat
tighter spacing in wells that offer more
liquids. It also is employing cluster spacing
in the 30- to 35-foot range, and proppant
loadings of 1,500-3,000 pounds per linear
foot, depending on what it believes is
optimal for the well type.
"We are reprocessing our RG3D
dataset that covers much of our dry gas
acreage in Belmont and Jefferson counties," he adds. "We also are doing some
inversion work."
Staying Power

The Ohio Department of Natural Resources listed Ascent Resources as the number one
natural gas producer in the state for ﬁrst quarter 2018, as well as ﬁrst in gas equivalent
and third in crude oil production. With 2 billion cubic feet a day of ﬁrm transportation
capacity, the company can access markets from Chicago and the Midwest to Canada
and the Gulf Coast.

106 THE AMERICAN OIL & GAS REPORTER

Perhaps the most remarkable thing
about Ascent's Utica wells, Yankowsky
proposes, is that their production is
staying flat for three-six months after
initial production, maintaining rates as
high as 40 MMcf/d. Ultimate recoveries
for the dry gas area exceed 25 Bcf for a
10,000-foot lateral.
"Belmont County is ground zero for
dry gas," he maintains. "It has double
the normal pressure and excellent frac
barriers enhance the geometries. It is
some of the best rock I have been exposed
to in my career."
As the Utica moves from Belmont
west into Guernsey County, it moves

American Oil and Gas Reporter - August 2018

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