vertical only wells in the utica?

Someone told me that Rice energy will drill some vertical wells into the Utica without horizontal legs in Belmont county. I don't see how they could make out at all when every other company is going horizontal for about 1-1/2 miles & fracking it. Has anyone else heard of this?

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Permalink Reply by Joseph-Ohio on September 24, 2013 at 12:47pm
Thanks Mike.
Permalink Reply by James Vanderink on September 24, 2013 at 12:52pm
Mike Murphy, that's a pretty aggressive leasing program by Artex in a time of the great Utica Shale play don't you think? Maybe they are just replenishing their reserves from the many assignments made in the past 2 years.
Permalink Reply by deutchen on September 24, 2013 at 1:19pm

I just looked on the odnr site for any permits to Rice energy in Ohio. There were 2 interesting ones near Old Washington on Shugert land. It had a "TD formation of: Queenston formation". for "prod formation: clinton group"? Is anyone familiar with what this is? The area permited is only 40 acres. The depth, if I read it right is 5693 ft.

Permalink Reply by Craig Cooper on September 24, 2013 at 4:40pm

These are all younger than the Utica but older than the Marcellus. The Queenston is a sand / shale and is older than the Clinton group. The Clinton group consists of a number of formations including, e.g. Lockport dolomite, Oriskany sandstone, both of which can be productive.

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 25, 2013 at 2:20am

It looks like they're drilling a Clinton well to HBP their leases and get production online.  Weird.

Permalink Reply by Craig Cooper on September 25, 2013 at 3:54am
Rights are often vertically segregated so if they don't at least drill down and into the Utica they can't HBP the (Utica) acreage.
Mike MurphyPermalink Reply by Mike Murphy on September 26, 2013 at 1:01am

it all depends on how the leases are worded .......most leases from the late 60s and 70s were wrote for all formations under said land and rice may have that in their leases so by drilling a producing well on the lease they HBP all formations in the lease  

Permalink Reply by Craig Cooper on September 26, 2013 at 1:54am

Good point Mike, which is why it is always good to make sure lease agreements are thoroughly read & understood before signing. IMO it's also a good idea to segregate lease agreements by some vertical reference point; e.g. depth, formation, etc.

Mike MurphyPermalink Reply by Mike Murphy on September 25, 2013 at 2:33am

MAYBE DRILEASE ALOT CHEAPER TO DRILL BUT WOULD PRODUCE AND HOLD THE LEASE FOR LATER UTICA WELLS

LLING THESE WELLS TO HBP THE 

0i7okn54zwbdoPermalink Reply by 0i7okn54zwbdo on September 25, 2013 at 2:36am

The problem with that (from the landowner perspective) is that Rice sold themselves as a Utica driller and paid some pretty serious money to get into the play.  Drilling Clinton wells to HBP their position smacks of desperation to me.

Mike MurphyPermalink Reply by Mike Murphy on September 25, 2013 at 2:42am

RICE could be drilling clinton and going to flip the utica to some other company and just hold the shallower rights in the clinton also and a percentage of the utica for future returns with money made and no big money spent 

Permalink Reply by Randall Tucker on September 25, 2013 at 4:09am
I thought the permit that I saw near Old Washington was to plug and abandon an old clinton well.

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