Gulfport Energy Reports Utica Shale Results

Gulfport Energy Reports Utica Shale Results

OKLAHOMA CITY, Oct 31, 2012 (GlobeNewswire via COMTEX) -- Gulfport Energy Corporation /quotes/zigman/59966/quotes/nls/gpor GPOR +0.79% today announced production results on its Ryser 1-25H and Groh 1-12H wells in the Utica Shale.

Utica Shale

       

          --  Gulfport's Ryser 1-25H tested at a peak rate of 1,488 barrels ofcondensate per day, 5.9 million cubic feet ("MMCF") per day of natural gas, and 649 barrels of natural gas liquids ("NGLs") per day assuming full ethane recovery and a natural gas shrink of 21%, or 2,914 barrels of oil equivalent ("BOE") per day.

          --  Gulfport's Groh 1-12H tested at a peak rate of 1,186 barrels of condensate per day, 2.8 MMCF per day of natural gas, and 367 barrels of  NGLs per day assuming full ethane recovery and a natural gas shrink of 18%, or 1,935 BOE per day.

 

Gulfport's Ryser 1-25H well was recently brought online from its resting period. The Ryser 1-25H was drilled to a true vertical depth of 8,122 feet with an 8,291 foot horizontal lateral. The well tested at a gross peak rate of 1,488 barrels of condensate per day and 5.9 MMCF per day of natural gas. Based upon composition analysis, the gas being produced is 1,160 BTU rich gas. Assuming full ethane recovery, the composition above is expected to produce an additional 110 barrels of NGLs per MMCF of natural gas and result in a natural gas shrink of 21%. In ethane rejection mode, the composition is expected to yield 46 barrels of NGLs per MMCF of natural gas and result in a natural gas shrink of 11%. Gulfport currently anticipates it will begin flowing the Ryser 1-25H into a sales pipeline by the end of January.

Gulfport's Groh 1-12H well was recently brought online from its resting period. The Groh 1-12H was drilled to a true vertical depth of 7,327 feet with a 5,414 foot horizontal lateral. The well tested at a gross peak rate of 1,186 barrels of condensate per day and 2.8 MMCF per day of natural gas. Based upon composition analysis, the gas being produced is 1,247 BTU rich gas. Assuming full ethane recovery, the composition above is expected to produce an additional 131 barrels of NGLs per MMCF of natural gas and result in a natural gas shrink of 18%. In ethane rejection mode, the composition is expected to yield 50 barrels of NGLs per MMCF of natural gas and result in a natural gas shrink of 5%. Gulfport currently anticipates it will begin flowing the Groh 1-12H into a sales pipeline by the end of January.

This news release was distributed by GlobeNewswire, www.globenewswire.com

SOURCE: Gulfport Energy Corporation

 

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Permalink Reply by gary SWF on October 31, 2012 at 9:18am

What County and Township are these wells in? How many acres in each drilling unit?...Thanks in advance.

Permalink Reply by BrianH on October 31, 2012 at 11:30am

The Groh well is in Guernsey, Madison township

The Ryser well is in Harrison, Moorefield township

Permalink Reply by robert c miller on November 2, 2012 at 12:55pm

how many acres are in play with the Ryser well?More than 640?Iam a half mile NW of the site and wonder if the lateral will impact me.Thanks.Bob 

Permalink Reply by Bluflame on October 31, 2012 at 9:26am

Thanks Brian,

   More good news for the Utica Shale "Southern Zone"!  

   Can someone with industry techie knowledge explain what GPOR means by "Full ethane recovery mode" and "ethane rejection mode"? I get that ethane is an important NGL that when "cracked", becomes a feedstock for a wide array of polymers. It therefore seems logical that they would select "full ethane recovery". Maybe a factor is the nearest "cracker" is currently located on the Gulf Coast???

    So, what are the two modes, can GPOR opt for one or the other and what would be GPOR's reasoning for selecting one or the other? If ethane is "rejected", what happens to it? GPOR has noted this anomaly with every release of well results. CHK has not mentioned the two "modes" in their production releases. Very confusing!

BluFlame

Permalink Reply by BrianH on October 31, 2012 at 11:30am

I believe full recovery means the gas is sent to a cracker and separated in to more valuable gasses and liquids. Rejection I believe is the high BTU gas is placed in the methane pipeline, blended and sold as methane for a lesser value. I’m sure it all has to do with their ability to transport to a cracker; a few are due online in the next year.

Permalink Reply by Bluflame on October 31, 2012 at 11:53am

Brian,

   That makes sense. So, the logic is ethane stays with the methane in "ethane rejection mode " and is separated for shipment to a "cracker" in "full ethane recovery mode".

    Unfortunately, I don't believe any "crackers" are imminent, at least in our locale. Assuming that is correct, then well revenue for the foreseeable future should be calculated using "ethane rejection mode". Shell plans one for near Pittsburgh, but the last I read they haven't started and it's a five year, Big $$$ undertaking. Maybe you are thinking "fractionators", of which a few are due online next year. They separate the NGL's into the various components including ethane. So, as you've stated, the ethane goes into the methane pipeline and is valued as NG vs an NGL.

  Really, it's all pretty confusing and I certainly could be wrong about this. Apparently, scaling up the chemical processes is a major undertaking. Also, there apparently is no pipeline available to send ethane to the gulf coast as a separate entity, and trucking, rail or barge must not be economically viable???

BluFlame

Permalink Reply by Dee A on October 31, 2012 at 11:32am

I Googled and Ryser is Harrison and Groh (167 acres) is Guernsey.

Permalink Reply by gary SWF on October 31, 2012 at 12:26pm

Thanks Dee and Brian........I like to see what the production rate and $ produced is by lateral horizonal footage and per acrea in unit.....just trying to compare well vs. well in somewhat similar way...... maybe like apples to apples....or something like that.....thank again.

Permalink Reply by Paul Martinelli on October 31, 2012 at 2:17pm
It yould be nice to see a flowchart of the process.....showing how whatever comes out of the wellhead is transported/processed/cracked/fractionionated/transported/sold....whatever gets done to make a
sale from the raw material that leads to royalties for a landowner.
Permalink Reply by Brad L. Harter on October 31, 2012 at 3:36pm

To me the figures are very confusing...My question is are these production figures good, bad or average. barrels of crude seems to be what is important considering the current price and demand. 

Permalink Reply by Bluflame on October 31, 2012 at 3:51pm

Brad,

  They are confusing. Apparently, this is "Oil & Gas-Speak". The O&G companies convert well output data to BOE (barrels of oil equivalent) using BTU-equivalent numbers for NG & NGL's. From their perspective, it provides a "fixed" method of comparing well performance. 

  Unfortunately for those of us interested more on the revenue side, the BOE calculation is pretty useless.  To get at revenue, one needs to calculate the value of each commodity based on price of each. Complicating matters is the wild price fluctuations of each. For instance, NG has ranged from ~$1.90/MCF to ~$3.90/MCF from April 2012 thru today.

  Go figure!

BluFlame

Permalink Reply by gary SWF on October 31, 2012 at 4:41pm

I would think one would consider these production numbers are very good......Some where around $6-700 per acre per day on start up.....and about $18-20 per foot per day on start up, of the laterial footage in the horizontal section of the wells.....that is if my calculation are correct.......Now one would expect these numbers to drop off considerable over a few months.......both are over $100,000 per day on start up numbers......I think....IMHO....someone please check my numbers please..........Thanks

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