Utica Basin Rig Count vs. Wells Classified as "Drilling" by the ODNR

All,

Can anyone explain to me why Baker Hughes shows 41 Rigs operating in the Utica Shale as of May 16, while at the same time, the ODNR reports 144 wells classified as "Drilling" as of May 16. Even accounting for multiple wells to a pad I get more than 41 Sites with a well or wells showing as "Drilling". I see about 65 unique sites with wells "Drilling" in the Utica Shale Activity Map Here. I believe that the numbers are accurate, but there must be a logical explanation. 

Thanks.

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Permalink Reply by pinehill on May 21, 2014 at 7:32am

Many are shut in waiting for pipelines and such.  They remain as drilling until they are producing, so many are drilled.

Permalink Reply by Alan Bowers on May 21, 2014 at 11:15am

If you read the ODNR weekly report wells have been and are being reported as "Permitted", "Drilling", "Drilled" (drilling has completed), "Producing", and "Lost Hole" (found on reports in the past. As an example the Fernandez well in Stark County Ohio).

The stage between "Drilling" and "Producing" is "Drilled".

For example some wells from the report Week Ending 05-07-2014 in Belmont County listed below:

01/11/2013 BELMONT WASHINGTON 34013206800000 Producing GULFPORT ENERGY CORPORATION IRONS 2-4H
02/08/2013 BELMONT UNION 34013206810000 Drilled GULFPORT ENERGY CORPORATION EAGLE CREEK 1-26H
11/26/2013 BELMONT SOMERSET 34013206820000 Permitted GULFPORT ENERGY CORPORATION MCCORT 3-28H
06/17/2013 BELMONT SOMERSET 34013206830000 Drilling GULFPORT ENERGY CORPORATION INHERST 2-14H
06/17/2013 BELMONT SOMERSET 34013206840000 Drilled GULFPORT ENERGY CORPORATION INHERST 1-14H
Permalink Reply by Alan Bowers on May 21, 2014 at 11:21am

The above was cut and paste from the Excel Spreadsheet. It chopped off the important part.  Lines 1 thru 5 above correspond to lines 1 thru 5 below.  Or check out a copy of the report which is attached.

Producing GULFPORT ENERGY CORPORATION IRONS 2-4H
Drilled GULFPORT ENERGY CORPORATION EAGLE CREEK 1-26H
Permitted GULFPORT ENERGY CORPORATION MCCORT 3-28H
Drilling GULFPORT ENERGY CORPORATION INHERST 2-14H
Drilled GULFPORT ENERGY CORPORATION INHERST 1-14H
Attachments:
Permalink Reply by Greg B on May 21, 2014 at 12:52pm

Alan, sorry, still not clear to me. Once drilling is completed I would expect that the well would be classified as "Drilled" at the earliest opportunity, next ODNR weekly report, correct? Though perhaps there is some more significant lag time in Operator reporting. If the lag time is more than a few weeks than I can understand why rig counts (more reliable perhaps) are so different when looking a reporting drilling locations, 41 vs. 65 is a large difference.

Permalink Reply by Alan Bowers on May 21, 2014 at 11:58am

I suspect that the report from ODNR is not as accurate as it could be.

As support for that position I would offer as evidence an article in The Business Journal (Youngstown), Vol 30 No 16 Mid March 2014 issue, page 19.  The author of the article is Gloria Tritten who owns part of the Chesapeake well, Tritten 9-14-3 3H, which has a status of "Drilled" on the report for Week Ending 05-17-2014.

In her article she stated the well went into PRODUCTION on February 25th, 2014.

Permalink Reply by INVICTUS on May 21, 2014 at 4:45pm

It isn't Alan. the info is "behind the curve" as it were.

No where near "real time" in reporting.

ODNR  never promises up to the minute reporting.

Your math based on their number will always be skewed.

And the press is even farther behind the curve.

Permalink Reply by Greg B on May 22, 2014 at 12:22am

Thanks... I wish that the ODNR would "require" more timely reporting from operators, though on the ohio.gov Website I see in LAW 1509.10 that Operators have 60 days to report when drilling operations commenced or were completed, link here: http://codes.ohio.gov/orc/1509.10

(A) Any person drilling within the state shall, within sixty days after the completion of drilling operations to the proposed total depth or after a determination that a well is a dry or lost hole, file with the division of oil and gas resources management all wireline electric logs and an accurate well completion record on a form that is prescribed by the chief of the division of oil and gas resources management that designates:

(1) The purpose for which the well was drilled;

(2) The character, depth, and thickness of geological units encountered, including coal seams, mineral beds, associated fluids such as fresh water, brine, and crude oil, natural gas, and sour gas, if such seams, beds, fluids, or gases are known;

(3) The dates on which drilling operations were commenced and completed;

Permalink Reply by Philip Thackray on May 22, 2014 at 4:20am

Greg,

RigData for May 16, 2014 lists 44 rigs in Ohio with six of them being Vertical rigs.  They also list a county by county breakdown.  The next RigData report comes out tomorrow.  From comparing what RigData says to what is going on here in SW PA the data seems pretty accurate and timely

Phil

Permalink Reply by Philip Thackray on May 22, 2014 at 4:21am

Here is the report

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