Drilling Down

Rig Count Stands at 18 in Ohio’s Utica

YOUNGSTOWN, Ohio – The number of oil and gas rigs in operation for last week across the Utica shale in Ohio stood at 18, according to the Ohio Department of Natural Resources.

ODNR reported that two exploration companies received a total of seven permits for horizontal wells during the week ended Nov. 17. All of the permits were issued in what is considered the “hot spot” of the oil and gas play in the state’s southeastern quadrant.

Chesapeake Exploration LLC secured three permits for horizontal wells in Harrison County, while Eclipse Resources I LP received four permits for wells in Monroe County.

As of Nov. 17, ODNR has issued 2,924 permits in Ohio’s Utica. Energy companies have drilled 2,457 of those wells, and 2,081 horizontal wells are in production in Ohio, according to ODNR.

There were no new permits issued in the northern tier of the Utica, which includes Mahoning, Trumbull and Columbiana counties.

No new permits for Utica wells were issued in neighboring Lawrence or Mercer counties in western Pennsylvania during the week, according to the Pennsylvania Department of Environmental Protection

Collectively considered the Appalachian Region, the Utica shale in Ohio and the Marcellus shale in Pennsylvania stand to experience a boost in oil and gas production over the next month, according to the latest projections released from the U.S. Energy Information Administration.

EIA reported this week that oil production across the Appalachian Basin is expected to increase by 4,000 barrels a day in December. In November, wells in the basin are expected to produce 137,000 barrels of oil. Next month, EIA projects production to hit roughly 141,000 barrels per day.

Natural gas production across the Appalachia Region is also projected to soar in December, EIA said. The agency projects that gas production next month should increase by 403 million cubic feet per day. In November, Utica and Marcellus wells produced 30 billion cubic feet of natural gas.

Next month, production is expected to reach 30.4 billion cubic feet per day, according to EIA.

Published by The Business Journal, Youngstown, Ohio.