Enervest to explore Volitile oil in Stark and Tusc.

EV Energy Partners has said it intends to keep an additional 73,500 acres in eastern Ohio and western Pennsylvania, at least for now. The acreage being retained totals 56,600 acres in Ohio and 16,900 acres in Pennsylvania.

The company said it intends to keep its shallow vertical-only wells in Ohio’s Clinton sandstone and the deeper Knox wells.

Walker also announced in Friday’s teleconference that his companies and a partner are developing a new plan to drill 20 new exploratory oil wells in three areas of Stark and Tuscarawas counties.

That drilling could begin late this year, officials said.

The company is seeking to locate and develop what’s called the volatile Utica oil window that drillers so far have largely been unable to tap.

The project’s partner was identified by Walker only as a privately held energy company with acreage near EnerVest’s holdings.

 

http://www.ohio.com/blogs/drilling/ohio-utica-shale-1.291290/more-d...

 

Could the partner be Sierra?

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Replies to This Discussion

Permalink Reply by TM on September 25, 2013 at 9:45am

James,

I talked to the folks over at Ohio ODNR. There was a technical error by the IT guys that update the cumulative shale activity spreadsheet. The Mizer 1H well is to be added to the list whenever they update it next. They have no idea why it was not added to the list. The 5H well is already listed in the ODNR spreadsheet. This is all settled now. Good Luck.

Permalink Reply by James D Troyer on September 25, 2013 at 3:40pm

 Thank you very much

Permalink Reply by ML on September 25, 2013 at 1:34pm

James,

No problem and no need to appologize.  I am sure this discussion was beneficial to many.  It's  also good to hear of the possibility of additional activity in Tusc.

Mike MurphyPermalink Reply by Mike Murphy on November 15, 2013 at 1:01am

how about abrey mc clendon he privately owned and has 1.7 billion dollars to work with .......he is leasing in other counties around tusc. but who is to say he is not using his capitol to be involved in tusc. county .....for the exploration knowledge he could gain 

Permalink Reply by TM on November 15, 2013 at 5:42am
Permalink Reply by arminius on November 16, 2013 at 4:01am

I would not be surprised to find Aubrey involved, but I believe the unnamed private oil company to be Red Hill Development (RHDK).  The first Utica well drilled in Guernsey County (2011) was drilled by Chesapeake Energy in the northwest corner of the county on Red Hill land (RHDK 8H).  This part of Guernsey County is part of that same area that Enervest refers to as the volatile oil portion of the Utica.  Chesapeake must have viewed this area as promising for several other wells near this well were permitted.  However, once the drilling of this well was completed, Chesapeake sold all of their interests in this well, plus all of their interests in the western part of Guernsey County, to Devon Energy.  At the time, this was seen as a big negative for western Guernsey County for why else would Chesapeake sell off this acreage unless the area was poor.  Subsequent events within Chesapeake would suggest that it was not the area that was poor but Chesapeake:  Chesapeake simply lacked the funds to do the science for this volatile oil area.  As to the well itself, RHDK8H, Enervest, as part of an operating agreement with Chesapeake, brought the well to completion.  The well has produced but not at the level that had been hoped for.  Enervest itself never makes mention of this well other than that they are the operator and not the owner of this well.

To the point of this long narrative, Enervest , Red Hill, and Aubrey(by way of Chesapeake) have had an ongoing relationship.  Both Enervest and Red Hill have recently announced lease assignments to Aubrey(American Energy Partners) in eastern Guernsey County.  Can the western part of Guernsey County, and by extension, the volatile oil areas of the Utica, not be far behind?

Permalink Reply by TM on November 16, 2013 at 6:06am
I am beginning to think it is red hill development too. Seems most of red hill acreage is in dover new philadelphia area and some in southern part of the county. That RHDK well has not produced too good so far. Could be it was drilled early on in the play without knowing proper completion techniques. On 2012 production report it only averaged about 27 barrels of oil a day. The volatile oil zone will be next I believe, it just will take time, money, and science to work commercially for the drillers.
Mike MurphyPermalink Reply by Mike Murphy on November 16, 2013 at 7:47am

LOOK 

RED HILL DEVELOPMENT ANNOUNCES JOINT SHALE VENTURE IN EASTERN GUERNSEY COUNTY

Published: October 6, 2013 8:00AM

DOVER -- Red Hill Development announced it has entered into a joint venture with American Energy-Utica, LLC for the development of a portion of Red Hill's Utica Shale acreage located in eastern Guernsey and western Harrison County.

Red Hill Development was founded in 1975 by the Kimble family of Dover, with various family members playing key roles in management of the company over the years. Red Hill continues to be operated by the Kimble family today producing over 600 shallow and deep wells on its leaseholds located primarily in Tuscarawas, Coshocton, Harrison and Guernsey counties.

American Energy-Utica, LLC is an affiliate of American Energy Partners, LP, which is a private company formed by former Chesapeake Energy CEO Aubrey Maclendon. Maclendon recently made headlines relative to his raising in excess of 57.6 billion dollars to fund Utica Shale development.

"The joint venture will enhance our ability to fully and expeditiously develop our acreage in Harrison and Guernsey counties while we continue to explore opportunities for development of our additional holdings in the region," said Keith B. Kimble, manager of RHDK Oil & Gas, LLC (dba Red Hill Development). "We've spent a great deal of time and energy studying the utica shale and the best available technologies to use in order to effectively develop the Utica. We have a lot of history drilling through the Utica and know it can be challenging and will require a tremendous amount of capitol. The family has explored options so that we could provide the best opportunity for expeditious, safe and productive development of our leases," said Kimble. According to Kimble, "After all of our due diligence the best fit for rapid, safe and productive development was a joint venture relationship. Aubrey's ability to raise money for development and his experience in horizontal drilling in general and the Utica Shale in particular, were a perfect fit for Red Hill Development."

The AEU-Red Hill Joint Venture plans to begin immediately applying for Utica well permits and commencing construction on well sites as early as October of this year, with the first well before the end of 2013. Plans for additional drilling activity are being developed for 2014 through 2076.

As a co-venturer, Red Hill Development will maintain a significant ownership position in its Utica leaseholds included in the joint venture, and will be involved in future investment and drilling operations alongside AEU.

Red Hill Development spent the last few years working with various banks and private equity groups to finance drilling operations, and negotiating with midstream companies for transportation and processing options.

Permalink Reply by TM on December 11, 2013 at 8:25am

Wells Fargo Energy Symposium By EVEP. Check out slide pages 11 and 13 in the presentation about the Utica volatile oil window. Looks like they will start drilling in 2014.

http://files.shareholder.com/downloads/EVEP/2837707762x0x712544/c0c...

Permalink Reply by TM on December 11, 2013 at 9:29am

I listened to the webcast of this event. They are claiming the oil is around 48 degrees and lower in this zone. They say there is alot of oil in the rock but it just does not flow they want it too. I guess they were a non op partner with EQT on those recent wells in Guernsey County and they said they were the best flowing oil wells to date. The catch is they said they were at peak 500 barrels of oil a day and now they are down to 80 to 100 barrel a day wells.

Some of the earlier wells Enervest drilled they said they have flattened out to like 30 barrels of oil a day now. Seems like these wells are having really big decline rates so far for oil rates. The oil is there in quantity but it just does not keep flowing commercially. Seems without new techniques these wells are tanking hard on production which dont look good.

Mike MurphyPermalink Reply by Mike Murphy on December 12, 2013 at 8:27am

TM I dont understand why u say these wells are so bad at 30 barrel a day thats about 90,000 dollars  a month plus gas and gas liquids sales a month , well overr total sales of 100,000 a month or a million 2 hundred thousand a year ....all wells decline and flatten out ........do u think the investors dont know this ......when an investor puts money in a well they are looking to get a return on their money but not over night .......it may take 3 or 4 years for them to get their money back......do u think that all them wells that have been drilled in eastern carroll county did not decline in production with in the first year .....why in the world would marathon being laying a 150 million dollar pipeline straight up to their refiniery in canton thru harrison and carroll county .......companies like that do not just waste money ....those company know that the oil is there and they will get it out of the ground .......the biggest problem in the oil window is no infastructure to handle the volume of oil that will be produced ........the wells u are speaking of are probably choked back to take in the different factors ....like onsite storage to the number of tanker trucks available to haul the oil to the off site storage of the product to the refinery capacity....all these things need to be looked at....if its so bad why would enervest be getting ready to drill 20 wells in the oil window.......why would aubrey mc clendin be throwing money into the area ........why would chesespeak be holding on to the leased acres in those 3 counties and building a work center in loiusville......why would they be building 3 hotels that i know of ....2 in canton  1 in carrollton.......the people with the money are not just spending money to spend it ......the writings on the wall ....u just need to look at the wall   

Permalink Reply by TM on December 12, 2013 at 8:51am

Go ask EVEP they are the ones who commented on the wells not me. They did not act too thrilled with the decline curve and the oil not flowing. I am just writing about what they said in their webcast call at Wells Fargo Symposium. I realize there is a decline curve on wells. I see you finally figured out how to unlock the caps on your keyboard lol.

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