Ohio's Utica shale is shaping up as a gas-rich, not oil-rich play

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

The data appears to show that the Utica shale will be dominated by natural gas more than oil. The oil volumes were lower than had been projected, and that’s likely a disappointment to analysts and energy companies.

"It’s shaping up largely as a natural-gas play," said Tom Stewart, executive vice president of the Ohio Oil and Gas Association. "I’m not disappointed or discouraged by the numbers. … But this is a process that takes time to develop."

It is possible that large quantities of oil may still be found in sections of the Utica shale in Ohio, he said.

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Permalink Reply by Missy Boardman on May 23, 2013 at 2:24pm

No, no...not $66 per month..$66 per acre per month. 

Permalink Reply by Paul Martinelli on May 24, 2013 at 1:34am

Are all 439 acre owners getting 66/acre/month.....if so, the well is paying out ~29K a month.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on May 24, 2013 at 4:29am

"there are landowners getting $1000 per acre per month"

This isn't the Bakken.  For $1,000/acre/mo. LOR there'd have to be substantial oil production.  That's possible for the first few months but there's simply no model that shows consistent and  prolonged production at that rate here in Ohio or PA.  There may be some wells that do that but telling people that $1,000/acre/mo. is normal and to be expected is simply a lie.  I'm shocked that you'd lie to people, Frank.

Permalink Reply by Josh on May 24, 2013 at 4:53am

I have heard up to 3k an acre a month for the utica from 2 diff people

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on May 24, 2013 at 9:59am

And I heard that Elvis is still alive and hangs out at the Ohio Valley Mall.  I've modeled these wells and have been very liberal in my estimates and nothing tells me to expect those kind of numbers.

Permalink Reply by TM on May 24, 2013 at 10:39am

I agree Bob. We have not seen anyone post royalties from a fully developed unit yet. I would love to see amounts per acre per month on a unit with like 6 or 8 wells producing. Until this is the norm I dont see how we can estimate what someone will get paid. These people selling their mineral rights now will be kicking themselves in the future.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on May 24, 2013 at 12:21pm

"a 20% gross proceeds royalty on unrestricted production in the Uitca wet gas will be in excess of $1000/acre/month and possibly stay above a $1000/acre/month for several years."

This is fantasy.  

Permalink Reply by Billy Park Whyde on May 19, 2013 at 3:14am

Anytime your not satisfied with a lease take it to a O&G attorney,  signing a document that leaves a bad taste in your mouth tends to eat away at a person if you signed in regret.

Mike MurphyPermalink Reply by Mike Murphy on May 19, 2013 at 6:06am

YOU NEED TO LOOK AT SOME MAPS AND SEE THAT MOST PRODUCING WELLS ARE IN THE DRY GAS AND WET GAS AREAS NOT MANY THAT HAVE BEEN DRILLED ARE IN THE OIL WINDOW ......LOOK AT THE CAIRNS 5 H IT IS IN THE OIL WINDOW ......29,000 BARREL IN 120 DAYS .......CHEASEPEAK IS THE BIG DRILLER IN CARROLL COUNTY CENTERING ITS ACTIVITY IN THE WET GAS AREA .....MOST REPORTED ON WELLS IN 2012 ARE NOT OIL BUT WET GAS WELLS IF U GET TO THE EASTERN SIDE OF CARROLL COUNTY U WILL HIT OIL EASTSIDE IS WET GAS ....TOM STEWART NEEDS TO LOOK BETTER AT THE DATA AND COMPARE IT TO THE MAPS THE ODNR HAVE PRODUCED 

Permalink Reply by bo boboski on May 22, 2013 at 10:35pm

I do believe you are right.  from I-77  east about 20 miles wide ,from center Noble county to northen tusc./ southwest carroll maybe  looks to be the best oil window and that's where there have been very few wells drilled. The Grohl well in center Guernsey produced 865 barrels a day for 6 days.  the Sanford in northwest Noble  was around 560 barrels.  don't know if they were opened up full bore, I doubt it. Had to be trucked out.I believe they are not talking a whole lot about these wells, and not drilling in this window too much yet until they get done buying up peoples mineral rights. lots of folks are getting offers and letters in the mail from companies that want to buy all or even part of their rights. Not lease , BUY!   Gotta keep the lid on it as long as possible.

Permalink Reply by Joseph-Ohio on May 22, 2013 at 10:59pm

Bo,

I'm thinking the same thing.

I've been thinking the same thing.

If it's infrastructure that's lacking and they want the resources they would build it out.

It appears to me they can afford to wait.

I think they want it but they want it as cheaply as they can get it.

I'm thinking it's 'a 'Marketing Ploy' and part of the 'Great Landowner / Consumer Beatdown'.

Permalink Reply by Joseph-Ohio on May 30, 2013 at 1:54pm

Bo,

I know you're referencing the southeast Ohio 'fairway' and to be most clear - I'm referencing the northeast Ohio 'fairway'.

No offer to buy letters in the mail that I know of but thinking the tactic similar in that no drilling either.

Thinking it's the Big Stall / Great Landowner Beatdown going on up here in the northeast as well.

Alot of maneuvering / posturing - not enough action.

Good luck to all of us. 

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