EID's Shawn reports on PDC Energy's recent announcement of plans to invest $53 million in Ohio's Utica Shale:
"In a recently released capital budget and operations plan, PDC Energy (PDC) announced their intentions to invest $53 million in Guernsey and Washington Counties in 2013. This new investment comes in addition to the $95 million PDC is expected to spend on leasehold acquisition and exploration in 2012. The $53 million budget planned for the company’s Utica operations will help PDC develop a 3 well pad in Guernsey County and 2 new wells in Washington County in the coming year – a tremendous investment that will create local jobs and bring much needed revenue to both counties.
In addition to announcing their investment into the Utica Shale for 2013, PDC also released the initial production rates for their first well in the Utica Shale. The Onega Commissioners 14-25H is located just outside of Lore City in the eastern portion of Guernsey County, and tested at a peak rate of 1,796 barrels of oil equivalent (“BOE”) per day on a 26/64″ choke with an average rate of 1,501 Boe per day for 24 consecutive hours. The Onega Commissioners 14-25H well flow test was conducted following a 60-day resting period, a common practice in the Utica.
The well’s lateral length is 3,950 feet – one of the shorter laterals to be developed in the Utica – was completed in 13 stages producing a mix of 56% condensate, 23% natural gas liquids and 21% residue gas. “Residue Gas” is the gas that has had the liquids component removed at a processing plant and is pipeline ready. The natural gas produced by the Onega Commissioners 14-25H was rated at 1,254 BTU, making it liquids rich.
In light of the positive results of the Onega Commissioners 14-25H, PDC Energy’s President and Chief Executive Officer James Trimble shared very encouraging words about their plans to develop the Utica.
We are very excited with the results from our first horizontal well in the Utica Shale in Ohio. The Onega Commissioners well is estimated to be approximately 79% liquids and has the potential to be one of the highest return wells in the Company’s history. Based on our early production, geological data and other reported industry results, we believe the Utica Shale will complement our success in the Wattenberg Field and provide PDC with a significant additional organic growth platform to continue our transition to a more balanced portfolio of oil and natural gas production and reserves.- James Trimble, PDC Energy’s President and CEO
The results of the Onega Commissioners 14-25H are comparable barrel of oil equivalent to many of the wells currently being produced in Carroll County. In contrast the PDC well’s composition favors condensate and natural gas liquids instead of a more natural gas and natural gas liquids heavy mixture in Carroll County."