American Oil and Gas Reporter - July 2016 - 67

SpecialReport: Horizontal & Innovative Drilling

Ohio Utica
While much Marcellus and Utica production is concentrated in southwestern
Pennsylvania and the West Virginia Panhandle, there is plenty of Utica activity
on the other side of the Ohio River as
well. Gulfport Energy has 231,000 net
acres, concentrated mainly in the dry-gas
window in Belmont and Monroe counties,
Oh., with net proved reserves of 1.7 trillion
cubic feet equivalent.
The company breaks down its asset
as 5 percent oil, 15 percent condensate,
15 percent wet gas and 65 percent dry
gas. The Ohio Utica play is primarily
dry gas along the border with Pennsylvania
and West Virginia, and becomes wetter
as one moves west.
In its first-quarter earnings report,
Gulfport announced it spudded 10 gross
(7.1 net) wells and turned 15 gross (8.0
net) wells to sales in the Utica Shale. Net
production from Gulfport's Utica acreage
averaged 670.7 MMcfe/d, an increase of
8 percent over fourth quarter 2015 and
an increase of 69 percent over first quarter
2015.
Gulfport says its wells were drilled
off the Valerie, Charlie and Roger pads.
It forecasts 23-29 gross drilled, uncompleted wells in its inventory by year-end.
Gulfport's type curve assumes an 8,000foot lateral and 1,000-foot spacing with
EURs ranging from 17.2 Bcfe to 20.7
Bcfe per well in the dry gas window.
Because of increased efficiencies and
further reductions in service costs, Gulfport
also announced it had decreased its total
expected well costs by $300,000 a well,
relative to estimates it provided in November 2015. Gulfport is operating three
horizontal rigs in the play.
The company also lists firm transportation agreements with the ANR, Dominion Transmission, NGPL, Rockies
Express, Rover, Tennessee Gas, Texas

Gas Transmission, and TETCO M2
pipelines, giving it access to gas markets
in the Midwest, Canada and Gulf Coast.
Gulfport (25 percent interest) and Rice
Energy (75 percent) have formed a midstream joint venture, Strike Force Midstream LLC, to provide gas gathering,
compression and water services to Gulfport's eastern Belmont and Monroe county
acreage. When completed, it will include
165 miles of high- and low-pressure, 12-

to 30-inch dry gas gathering pipeline and
an estimated 1.8 million dk/d of throughput
capacity.
Building On Strength
Asked whether her company is focused
on dry gas, wet gas or crude oil, Director
of Investor Relations Julie Danvers says
Rice Energy is "commodity agnostic,"
and focuses capital investment decisions
"on maintaining balance sheet strength

Dearing Compressor and Pump Co.
Family Owned Since 1945

Growing to new heights,
Engineered Packages for the Energy Market

says its total commitment will reach 82
wells.
Seneca will continue to be the program
operator. Production from all joint development wells will be gathered by National
Fuel's Clermont Gathering System. According to the announcement, IOG also
will continue to share in Seneca's contracted firm sales and firm transportation
capacity, including 490,000 dekatherms
a day of capacity on National Fuel's
Northern Access Project, which is expected
to be placed in service by November
2017.

with roots in the Appalachian Basin
Corporate Office and Main Packaging Facility

330-599-5720

3974 Simon Rd, PO Box 6044 Youngstown, OH 44501 www.dearingcomp.com
JULY 2016 67

http://www.dearingcomp.com

American Oil and Gas Reporter - July 2016

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