Ohio wells produced about 73.3 Bcf of natural gas and 4.9 million bbl of oil in 2011, according to a report released this week by the Ohio Department of Natural Resources’ (ODNR) Division of Oil and Gas Resources Management.
The 23-page Ohio Oil and Gas Summary, also known as the McCormac Report, said 690 drilling permits were issued in the state in 2011, a 6% increase from 2010. During that time the state also saw a 7.7% increase in the number of wells drilled. ODNR said 460 oil and natural gas wells were drilled in 2011.
“A continued reduction in market prices resulted in the second lowest number of wells drilled since at least 1887,” the ODNR said, adding that wells were drilled in 42 of Ohio’s 88 counties. “[But] it is anticipated that drilling in the Utica Shale in 2012 will reverse this trend.”
The state agency said well completion reports submitted by March 2 indicated that there were 333 productive completions and 27 dry holes drilled in 2011, which translates to a productive rate of 93%. The ODNR also said drilling activity averaged 38 wells per month (wpm) in 2011, compared to 36 wpm in 2010.
There were 121 mineral rights owners drilling wells in 2011, 93% of whom drilled less than 10 wells. The ODNR said the highest number of wells drilled by a single owner was 37, while the 10 most active operators collectively drilled 216 (47%) of all the new wells in 2011.
Last year Ohio’s crude oil production totaled 4.85 million bbl (averaging 13,296 b/d), while natural gas production was about 73.3 Bcf (averaging 200.8 MMcf/d), according to the ODNR. That amounted to a 1.43% increase in oil and a 6.18% decrease in natural gas from 2010.
Of the 460 wells drilled in 2011, the ODNR said 433 were productive and 27 were dry holes. Shale formations were targeted by 51 wells — a 27.5% increase from 2010 — and 215 wells were drilled into Clinton sandstone. The Berea sandstone was also targeted by 51 wells in 2011, followed by the Cambrian system (46 wells), Rose Run sandstone (26) and Trenton limestone (3).
The latest report meshes with Utica Shale production figures released last spring by the ODNR, which found that Chesapeake Energy Corp. led all other natural gas producers (see Shale Daily, April 3).
As of last Friday, the ODNR has issued 375 horizontal drilling permits in 2012. Of those, 92 have been drilled, 18 were in the process of being drilled, 11 were producing and three were plugged. The remainder were classified as having either been permitted (245), not drilled (four) or inactive (two).
Chesapeake continues to lead the field with permits issued, receiving 238 to date this year. Gulfport Energy Corp. is second with 25 permits, followed by Hess Ohio Developments and Resources LLC (14), HG Energy LLC and EnerVest Operating LLC (13 each), CNX Gas Co. LLC (12), Devon Energy Production Co. (11), Antero Res Appalachian Corp. (10), Mountaineer Keystone LLC (7), RE Gas Development LLC (6), Atlas Noble LLC (5), and Anadarko Petroleum Corp. (4). Two companies — Sierra Resources LLC and XTO Energy Inc. — each had three permits, while Carrizo (Utica) LLC, Chevron Appalachia LLC and PDC Energy Inc. each had two, and EQT Production Co., Halcon Operating Co. Inc., Hall Drilling LLC, Hilcorp Energy Co. and SWEPI LP, a Shell Oil Co. affiliate, each had one.
Carroll County leads in 2012 permitting with 136, followed by Harrison County (57), Columbiana County (52), Guernsey and Jefferson counties (18 each), Monroe County (17), Noble County (15), Belmont County (11), Portage County (10), Mahoning, Stark and Tuscarawas counties (nine each), Coshocton County (four), Holmes County (three), Knox, Muskingum and Trumbull counties (two each) and Wayne County (one).
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