Magnum Hunter Resources (MHR) - Utica Shale

By Tim - http://oilshalegas.com

Utica Shale News - Magnum Hunter Resources Corporation (NYSE: MHR) provides an update on the Utica Shale located in Noble County, Ohio.

Magnum Hunter Resources Corporation (NYSE: MHR) announced today that its wholly-owned subsidiary, Triad Hunter, LLC ("Triad Hunter"), has closed on the acquisition of leasehold mineral interests located predominately in Noble County, Ohio (the "Utica Acreage") from an undisclosed seller for a total purchase price of $24.8 million.

The Utica Acreage consists of approximately 15,558 gross (12,186 net) acres predominately located in Noble County, Ohio. The net price paid per acre for this acquisition was $2,037. The majority of the leasehold acreage acquired in this transaction is held by shallower production. The purchase includes all depths of 300 feet below the top of the Queenston Formation down to all further depths. There is no associated shallow production included with this acquisition. There is a possibility of a second closing on another block of similar acreage that may occur on or before April 16, 2012, assuming the Seller can satisfy certain title deficiency requirements.

The Utica Acreage is in close proximity to Triad Hunter's existing acreage position in Washington and Noble Counties, Ohio, and now provides Triad Hunter approximately 18,187 gross (14,815 net) acres in in these two counties, and a total of 23,214 gross (17,316 net) acres that are presently prospective for the Utica Shale..

http://blackberrystocks.blogspot.com/

http://oilshalegas.com/uticashale.html

Noble County, Ohio - Utica Shale

By Tim - http://oilshalegas.com

Utica Shale News - Magnum Hunter Resources Corporation (NYSE: MHR) provides an update on the Utica Shale located in Noble County, Ohio.

Magnum Hunter Resources Corporation (NYSE: MHR) announced today that its wholly-owned subsidiary, Triad Hunter, LLC ("Triad Hunter"), has closed on the acquisition of leasehold mineral interests located predominately in Noble County, Ohio (the "Utica Acreage") from an undisclosed seller for a total purchase price of $24.8 million.

The Utica Acreage consists of approximately 15,558 gross (12,186 net) acres predominately located in Noble County, Ohio. The net price paid per acre for this acquisition was $2,037. The majority of the leasehold acreage acquired in this transaction is held by shallower production. The purchase includes all depths of 300 feet below the top of the Queenston Formation down to all further depths. There is no associated shallow production included with this acquisition. There is a possibility of a second closing on another block of similar acreage that may occur on or before April 16, 2012, assuming the Seller can satisfy certain title deficiency requirements.

The Utica Acreage is in close proximity to Triad Hunter's existing acreage position in Washington and Noble Counties, Ohio, and now provides Triad Hunter approximately 18,187 gross (14,815 net) acres in in these two counties, and a total of 23,214 gross (17,316 net) acres that are presently prospective for the Utica Shale..

http://blackberrystocks.blogspot.com/

http://oilshalegas.com/uticashale.html

Utica Shale - Devon Energy (DVN)

By Tim - http://oilshalegas.com

Utica Shale News - Devon Energy (DVN) provides an update on the Utica Shale located in Ohio.

In the Ohio Utica, Devon and Sinopec have assembled 235,000 net acres in the play. We just TD-ed our first horizontal well, the first of 15 horizontal wells that we expect to drill here this year. While we are still in the early stages of evaluating these plays, we have seen positive subsurface data and encouraging rate indications in several of them. By the end of 2012, we expect to have drilled approximately 125 wells in aggregate across these 5 plays, giving us a much better understanding of the potential of these positions.

http://blackberrystocks.blogspot.com/

http://oilshalegas.com/uticashale.html

PDC Energy (PETD) - Utica Shale Ohio News

By Tim - http://oilshalegas.com

November 10, 2011 - Petroleum Development Corporation (dba PDC Energy) (Nasdaq:PETD) recently announced that they are involved in the Utica Shale. The Utica Shale is really heating up in the oil window of the field which is located in Ohio.

PDC has acquired the rights for up to 40,000 net acres in the Utica shale play in southeastern Ohio for approximately $70 million. The Company plans to fund $14 million in 2011 and expects the remaining $56 million to be funded in 2012.

James Trimble, President and Chief Executive Officer, stated, "Our third quarter results were strong, and from a business development perspective we were particularly pleased. We acquired the rights of up to 40,000 net acres in the Utica Shale play in southeastern Ohio, we announced PDCM's acquisition of 90,000 acres prospective for the Marcellus Shale in West Virginia, and we announced the planned divestitures of our NECO, Permian basin and certain non-core assets. We engaged in a process to secure a joint venture partner in the Utica Shale play. Proceeds generated from the anticipated asset divestitures and the successful conscription of a joint venture partner will be utilized to strengthen our balance sheet, improve our liquidity position, and fund a portion of our 2012 developmental capital program. We expect our divestitures to occur in the fourth quarter of 2011 and the first quarter 2012."

Shale News

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Range Resources (RRC) - Utica Shale

By Tim - http://oilshalegas.com

November 9, 2011 - Range Resources (RRC) recently gave some comments about It's Utica Shale . The Utica Shale has been one of the top shale plays in North America lately as Oil & Gas companies scramble to acquire mineral rights in Ohio and Pennsylvania.

"In the Utica Shale, we'll spud our next well in the second quarter of 2012. Industry has drilled and will be drilling several Utica wells. Results of some of these wells will help us to delineate Range's acreage. A lot of our acreage is perspective for both the Upper Devonian and Utica shale. We hold all depth rights on our fairway acreage, so as we focus on driving up reserves and production in the low-risk highly economic Marcellus play, we'll hold the Upper Devonian and Utica potential both above and below the Marcellus. As we better understand the other 2 horizons with time, we'll then determine the optimum plan for each horizon."

Shale News

OilShaleGas.com

Rex Energy (REXX) - Utica Shale

By Tim - http://oilshalegas.com

November 8, 2011 - Rex Energy (REXX) recently gave some comments about It's Utica Shale Oil Field located in Ohio, specifically, Carroll County. It appears the Carroll County area in Ohio is the "sweet spot" of the Utica Oil Shale window.

"On Slide 14, we have our Utica Shale overview. To date, we have a total of approximately 85,300 gross, 58,700 net acres perspective in this area for the Utica Shale. Chesapeake Energy has recently disclosed well results for 4 wells in their Utica Shale program, 3 of which are in close proximity to our Carroll County, Ohio acreage position. Locations and production rates for these wells are shown on the graph. As more production rates are disclosed, we feel confident that our Butler County acreage will be in the dry gas window and that all of our acreage in Carroll County, Ohio will be at ground 0 for the liquids rich condensate window."

http://www.rexenergy.com/

Shale News

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Butler County, PA - Utica Shale - Rex Energy (REXX)

By Tim - http://oilshalegas.com

November 8, 2011 - Rex Energy (REXX) recently gave an update on their Butler County, PA Utica Shale acreage. The Utica Shale is an oil field in Ohio and a Natural Gas Field in Pennsylvania.

In Butler County, we have also completed our first horizontal Utica Shale test well, the Cheeseman #1H. The well flowed at a 24-hour test rate of 9.2 million cubic feet of dry gas per day. The well is currently shut in and is expected to be placed in service in January of 2012

Shale News

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Utica Shale - Anadarko Petroleum (APC) - Ohio

By Tim - http://oilshalegas.com

November 7, 2011 - The Utica Shale continues to heat up! Anadarko Petroleum (APC) recently announced in their earnings report that they've added 300,000 acres of mineral rights in the Utica Shale (Ohio). Anadarko Petroleum (APC) is after the oil in this shale play.

"Additionally, in the U.S. onshore, we've been assembling a position in Ohio's Utica Shale, and over time, we have acquired interests in approximately 300,000 gross acres in the prospective liquids-rich window at attractive entry costs. We've recently spud our first well in the play and look forward to an active drilling program in this emerging area."

Shale News

OilShaleGas.com

Exxon Mobil (XOM) - Utica Shale

By Tim - http://oilshalegas.com

November 5, 2011 - Exxon Mobile (XOM) recently disclosed that they are involved in the Utica Shale. The Utica Shale, located mainly in Ohio, is an oil & natural gas field that has been moving up on the Top 5 shale plays. Exxon Mobile (XOM) said this about their Utica Shale acreage.

"Exxon Mobil is also actively exploring several other early stage liquids-rich play in the United States, including the Utica Shale play in eastern Ohio and western Pennsylvania. Our position in the Utica stems from our recently completed acquisition of the Phillips companies and represents incremental upside to the Phillips acquisition, which was focused on the Marcellus. The Phillips acquisition included 45,000 net acres prospective for the Utica in Ohio, and we have increased our position now to over 75,000 net acres. We anticipate drilling our first Utica well in early 2012."

Shale News

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Utica Shale - Chesapeake Energy (CHK) Joint Venture

By Tim - http://oilshalegas.com

November 4, 2011 - Chesapeake Energy (CHK) announced major Utica Shale news last night in the form of a joint venture (JV). Chesapeake Energy (CHK) Announces Utica Shale Joint Venture and Utica Shale Financial Investment with Potential Combined Proceeds Net to Chesapeake of Approximately $3.4 Billion. This is the largest deal to date in the Utica Shale and is a sign of things to come!

JV Transaction Values 570,000 Net Acres of Chesapeake Utica Shale Leasehold at $8.55 Billion, or $15,000 Per Net Acre

Financial Transaction Provides up to $1.25 Billion to Accelerate Drilling Across All Phases of Chesapeake’s Utica Acreage, Including Dry Gas and Oil Areas

Chesapeake Energy Corporation (NYSE:CHK) today announced two transactions to monetize a portion of its 1.5 million net acres of leasehold in the Utica Shale play primarily in eastern Ohio. Fully implemented, the transactions would result in consideration to Chesapeake of approximately $3.4 billion.

Chesapeake has entered into a letter of intent (“LOI”) with an undisclosed international major energy company for an industry joint venture (“JV”) through which the JV partner will acquire an undivided 25% interest in approximately 650,000 net acres of leasehold in the wet natural gas area of the Utica Shale play. Of this acreage, approximately 570,000 net acres are owned by Chesapeake, and approximately 80,000 net acres are owned by Houston-based EnerVest, Ltd. and its affiliates (“EnerVest”). The JV area covers all or a portion of 10 counties in eastern Ohio (the “JV AMI”). The consideration for the transaction will be $15,000 per net acre, or approximately $2.14 billion to Chesapeake and approximately $300 million to EnerVest. Approximately $640 million of the consideration to Chesapeake will be paid in cash at closing, and approximately $1.5 billion will be paid in the form of a drilling and completion cost carry, which Chesapeake anticipates fully receiving by year-end 2014.

Chesapeake will serve as the operator of the JV and will conduct all leasing, drilling, completion, operations and marketing activities for the project. The LOI provides that the JV partner will have the option to acquire a 25% share of all additional acreage acquired by Chesapeake in the JV AMI and the option to participate with Chesapeake for a 25% interest in midstream infrastructure related to production generated from the assets. The LOI provides for the execution of definitive transaction documents and closing by mid-December 2011.

Additionally, as a first step in a financial transaction led by EIG Global Energy Partners (“EIG”), Chesapeake has completed the sale to EIG of $500 million of perpetual preferred shares of a newly formed entity, CHK Utica, L.L.C. Chesapeake expects to sell up to $750 million of additional CHK Utica preferred shares to other investors, including limited partners of EIG, by November 30, 2011. CHK Utica is a wholly owned, unrestricted subsidiary of Chesapeake that owns approximately 700,000 net leasehold acres within an area of mutual interest in the Utica Shale play in 13 counties primarily in eastern Ohio (the “CHKU AMI”) that encompasses the JV AMI. Chesapeake has retained all the common interests in CHK Utica.

The CHK Utica preferred shares are entitled to receive an initial annual distribution of 7%, payable quarterly. Chesapeake retains an option exercisable prior to October 31, 2018 to repurchase the preferred shares for cash in whole or in part at any time at a valuation expected to equal the greater of a 10% internal rate of return or a return on investment of 1.4x. Assuming a total of $1.25 billion of CHK Utica preferred shares are purchased, investors in CHK Utica preferred shares will also receive a 3% overriding royalty interest in the first 1,500 net wells drilled on CHK Utica’s leasehold, which is the equivalent of an approximate 0.45% overriding royalty interest across Chesapeake’s projected 10,000 net well inventory. Chesapeake’s average net revenue interest on its Utica Shale leasehold is approximately 83%, which compares favorably to net revenue interests in the Haynesville, Barnett and Eagle Ford shale plays of approximately 75%.

As part of the financial transaction, Chesapeake has committed to drill a minimum of 50 net wells per year through 2016 in the CHKU AMI, up to a minimum cumulative total of 250 net wells, for the benefit of CHK Utica. Chesapeake believes it will have considerable operating and financial flexibility in fulfilling the drilling commitment because the company’s planned Utica Shale drilling program for the years ahead involves a significantly higher rig count than the approximate 10-rig drilling program required by the terms of the CHK Utica preferred shares investment.

Shale News

Carroll County, Ohio (OH) Utica Shale

By Tim - http://oilshalegas.com

Rex Energy (REXX) has come out and updated investors on their Utica Shale Acreage located in Carroll County, Ohio. Mineral Rights land leasing has ramped up in Ohio due to the potential for a huge oil discovery in the region. Price Per acre is surging over $3,500 in the sweet spots.

http://oilshalegas.com/uticashale.html

Rex Energy has acquired the rights to lease approximately 11,000 net acres in Carroll County, Ohio (subject to title review) where the company intends to conduct exploratory operations for oil and natural gas within the Utica Shale. The company is continuing to lease acreage in this area and is planning its first well in 2012. The company expects to pay approximately $40 million or an average of $3,600 per acre.

For additional information on the Warrior Prospect, please visit the company's website at www.rexenergy.com and refer to the updated corporate presentation.

Chevron (CVX) Utica Shale - Oil & Gas Update

By Tim - http://oilshalegas.com

Chevron Corporation (NYSE:CVX) recently updated investors on It's Utica Shale prospective acreage. Chevron (CVX) has a large position in the Utica Shale but has not started drilling yet.

Evan Calio - Morgan Stanley

Okay. And a second question for George and maybe more pointed than Paul's. I mean, clearly, excitement's been building on the Utica shale opportunity. And then something that's a bit of a focus this morning with Chesapeake's release and conference call. I know and I believe Chevron has 600,000 acres that you disclosed that has Utica oil shale exposure. But you didn't call that out in Slide 17. Maybe you could discuss how you're thinking about activity there and play potential into 2012?

George Kirkland

Okay. Well, let me first say we believe it's a little bit too soon to conclude on the potential of the Utica. We've got a good acreage position in the Utica from the Atlas acquisition. We're going to do what we do everywhere in the world. We're going to evaluate that. And the only the way we can evaluate it is we're going to have to drill some wells and test performance. So it's something for the future, but it's, like you say, too early at this point in time to, I think, hype it.

The Utica Shale holds both Oil & Natural Gas and extends down from Canada into the states of New York, Pennsylvania, Ohio, and West Virginia. Chesapeake Energy (CHK) recently announced a major oil discovery in the Utica Shale Field and is excited about the prospects in Ohio. Could Utica Shale be as big as the Eagle Ford Shale? Only time will tell!

http://oilshalegas.com/uticashale.html

Utica Shale - Ohio Oil Field

By Tim - http://oilshalegas.com

Utica Shale minerals rights are heating up after Chesapeake Energy (CHK) came out with news about estimates related to their acreage position. Drilling for oil in the Utica Shale Ohio area is set to ramp up towards the end of 2011 and into 2012.

Chesapeake Announces a Major New Liquids-Rich Discovery in the Utica Shale in Eastern Ohio

Having achieved successful results from recent drilling activities in eastern Ohio, Chesapeake is announcing the discovery of a major new liquids-rich play in the Utica Shale. Based on its proprietary geoscientific, petrophysical and engineering research during the past two years and the results of six horizontal and nine vertical wells it has drilled, Chesapeake believes that its industry-leading 1.25 million net leasehold acres in the Utica Shale play could be worth $15 - $20 billion in increased value to the company. Chesapeake’s dataset on the Utica Shale includes approximately 2,000 well logs, full-suite petrophysical data on approximately 200 wells, 3,200 feet of proprietary core samples from nine wells and production results from three wells. As a result of its analysis, the company believes the Utica Shale will be characterized by a western oil phase, a central wet gas phase and an eastern dry gas phase and is likely most analogous, but economically superior to, the Eagle Ford Shale in South Texas.

Chesapeake is currently drilling in the Utica Shale with five operated rigs to further evaluate and develop its leasehold and anticipates increasing its rig count to eight by the end of 2011 and reaching at least a range of 16-20 rigs by year-end 2012. Also, the company believes that its leasehold position in the Utica Shale will support a drilling effort of at least 40 rigs by year-end 2014. Chesapeake is currently conducting a competitive process to monetize a portion of its Utica Shale leasehold position, which will be through an industry joint venture process or through a number of other monetization alternatives. The company anticipates completing a Utica Shale transaction in the 2011 fourth quarter.

See Also:

http://oilshalegas.com/uticashale.html

http://oilshalegas.com/eaglefordshale.html

http://oilshalegas.com/bakkenshale.html

Utica Shale: Junex JNX 2009 Update - Natural Gas

Junex ( CVE: JNX ) has come out today, 2/24/09, and updated investors on the Utica Shale well they are drilling with partner Forest Oil ( FST ).

Forest drilled and completed the first three horizontal Utica Shale wells in Quebec's St. Lawrence Lowlands, which were successfully cased and fracture stimulated in four stages with rates ranging from 100 - 800 Mcf/d. Frac load flowback was incomplete due to the lack of coiled tubing units in the area. Forest expects to continue to test its wells after the winter season is over. Although sustained rates were not as high as anticipated, the tests have allowed Forest to identify the section of the shale it intends to target in future test wells. Each of the wells were tested in different sections of the Utica Shale with an objective of gathering data on productivity to allow optimization of future completions. Furthermore, Forest proved the ability to successfully drill the wells horizontally and pump multi-stage slickwater frac jobs without major operational issues."

"We are quite excited that our partner is perseverant in its efforts and remains committed to the Utica Shale Gas project. The three wells drilled in 2008 are the first horizontal wells to be drilled and fracture stimulated in the Utica Shale in Quebec. Considering that the Lowlands shale gas play is at its earliest stage of development, we fully expect to learn and build upon the results from these few first wells to develop the best drilling and completion recipes for the Utica Shale" said Junex's president, Mr. Jean-Yves Lavoie, P. Eng. "Furthermore, the results of the Champlain #1H horizontal well, coupled with the results of Junex's St-Augustin-de-Desmaures #1 well drilled near Quebec City last year, demonstrate the shale gas potential of Junex's 100%-held north shore acreage along the pipeline corridor between the two areas."

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Marcellus Shale - Utica Shale Meetings - New York

The New York State Department of Environmental Conservation ( DEC ) has finalized logistics for a series of meetings to give the public an opportunity to participate in the analysis of the potential environmental impacts of high-volume hydraulic fracturing of horizontal wells in New York's natural gas-bearing Marcellus and Utica shale formations.

DEC had previously announced that six meetings would be scheduled throughout the Southern Tier and Catskills in November and early December. Now finalized, the locations are:

Thursday, November 6, 2008: Allegany-Limestone High School Auditorium/Theater, 3131 Five Mile Road, Allegany, NY14706.

Wednesday, November 12, 2008: Haverling High School Auditorium, 25 Ellis Avenue, Bath, NY 14810.

Thursday, November 13, 2008: Southside High School Auditorium, 777 South Main Street, Elmira, NY 14904.

Monday, November 17, 2008: Broome County Community College, West Gym, 901 Upper Front Street, Binghamton, NY 13902.

Tuesday, December 2, 2008: SUNY/Oneonta, Hunt Union Ballroom, 108 Ravine Parkway, Oneonta, NY 13820.

Thursday, December 4, 2008: Sullivan County Community College, Fieldhouse, 112 College Road, Loch Sheldrake, NY 12759.

http://oilshalegas.com

Utica Shale Update - Gastem St Jean Well

This is the most recent news I have heard in regarding or drilling activity in the Utica Shale which is located in Quebec.

Gastem (TSX VENTURE:GMR) is pleased to announce that drilling is underway on Questerre et al #1 Saint-Jean-sur-Richelieu test well in the St. Lawrence Lowlands. Gastem holds a 20% working interest on this permit and Questerre is Operator with an 80% working interest.The St-Jean North permit, 54,000 gross acres, was obtained by Questerre in 2007 from a third party and Gastem, as a result of a previous agreement with Questerre, has a 20% participating interest.

The St-Jean North permit is adjacent to Gastem's 50% owned St-Jean Block, comprising 198,000 gross acres.

http://oilshalegas.com

Utica Shale - TLM Talisman Energy Provides Update Report 9/03/08 Quebec Canada Lorraine Shale

Talisman Energy came out yesterday with an operational update on its Utica Shale properties in Quebec Canada.

Talisman Energy Inc. ( TLM ) announced a successful test from the Utica shale in its Gentilly well in Quebec. The Gentilly well is located on the south side of the St. Lawrence River, approximately 100 kilometers south of Quebec City. Talisman holds a 75% interest in the well and is operator.

The well, which is a re-entry to a previously drilled Trenton-Black River well, flowed at 800 mcf/d from one completed interval on a sustained basis during the 18-day test period. At the time of shut in, the well was still cleaning up and pressures and flow rates were constant.
"We are encouraged by the initial results of this vertical well," said John A. Manzoni, President and Chief Executive Officer. "We have additional testing to do on the well, including zones within the Basal Lorraine and Lorraine shale formation, but this is a very promising start to our unconventional program in Quebec."

The Lorraine shale sits on top of the Utica and can be up to 6,500 feet thick. The Utica shale ranges between 300 and 1,000 feet. Early indications show that both the Lorraine and Utica rocks are thick, porous and appear brittle and over pressured, all of which are conducive to artificial fracture stimulation.

Talisman has an extensive land position with an option to earn 760,000 net acres through drilling in Quebec. The Company is in the early stage of evaluating the rock properties and reservoirs. Talisman will test three to four pilot areas over the next 18 months, with up to four additional wells planned prior to year-end.

Woodford Shale -Chesapeake Energy CHK Sells

Chesapeake has announced today that they will be selling 90,000 acres of their Woodford Shale portfolio to BP for 1.75 Billion.

CHK will use the money for other shale plays including The Marcellus Shale, Haynesville Shale.

The Woodford Shale is located in Oklahoma and is considered a medium range Shale Gas Play. I would probably compare it to the Utica Shale although the Utica is still very young.

For more on the Haynesville Shale and companies drilling there, visit http://haynesvilleshales.com

The Utica Shale Play - Canada 7-09-08

The Utica Shale Play, located in Quebec Canada, has been heating up lately. Several companies are buying up acres in a big way. The leader appears to be Forest Oil Company FST....followed by several small companies which I will be listing later today on my website.

Keep an eye on this shale as it is estimated to hold over 24 trillion cubic feet in Natural Gas Reserves. Action really only started on this shale last year beginning with Forest Oil. Haynesville Shale started I believe in 2005-2006.

For more on the Utica Shale - go to this website http://www.oilshalegas.com/uticashale.html

For more on President Bush's offshore drilling plan... go here http://www.oilshalegas.com/offshoreoildrilling.html