Ohio Gas Association Utica Shale Update

Transcription

1 Ohio Gas Association Utica Shale Update

2 Shale Permitted, Drilled Utica Shale: Permitted: 1,165 Drilled: 774 Marcellus Shale: Permitted: 36 Drilled: 25 *Totals since 2010.

3 Marcellus Activity

4 Utica Shale Play in Ohio

5 WELLS DRILLING OR DRILLED PRODUCING WELLS OIL WINDOW WET GAS DRY GAS Source: Southeastern Ohio Oil & Gas Association & O.D.N.R. Data as of 8/31/2013

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8 Permits Issued (drilled/producing) 1/11/14 Carroll 390 (282/143) Washington 10 (4/4) Harrison 206 (109/39) Coshocton 5 (2/1) Columbiana 100 (57/12) Holmes 3 (0/0) Noble 82 (58/16) Morgan 3 (3/0) Belmont 90 (28/11) Muskingum 3 (1/1) Guernsey 77 (32/14) Knox 2 (1/0) Monroe 64 (31/6) Ashland- 1 (1/0) Jefferson 37 (26/9) Ashtabula 1 (0/0) Mahoning 29 (13/3) Geauga 1 (0/0) Portage 15 (9/2) Medina 1 (1/0) Trumbull 15 (10/3) Wayne 1 (1/1) Tuscarawas 15 (3/3) Stark 13 (7/2) Totals 1,165 (679/385)

9 Shale by the Numbers 2012: 225 wells drilled 2013: 661 wells drilled Through 2014: 1,180 wells drilled (projected) Through 2015: 1,830 wells drilled (projected)

10 Third Quarter Production Results 245 wells reported production results Total production: 1,332,477 barrels of oil 33,606,075 Mcf of gas Average production per well: 5,439 barrels of oil 137,168 Mcf of gas

11 2013 Production Crude Oil bbl ,768, ,647, ,991, ,732,923 est NaturalGas mcf ,398, ,965, ,445, ,027,500

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14 Top 10 Permitted E&P s In The Utica 1. CHESAPEAKE: GULFPORT: ANTERO: HESS: CNX GAS: REX: 28 t-7. HG ENERGY: 23 t-7. ECLIPSE RESOURCES: 23 t-9. ENERVEST: 17 t-9. PDC: 17

15 E&P Companies Working In Ohio Anadarko E&P Company LP 12 Antero Res Appalachian Corp 41 Atlas Noble 8 BP 6 (2 permits under Brammer Engineering) Carrizo Utica LLC 3 Chesapeake 513 Chevron Appalachia LLC 7 CNX Gas Company LLC 37 Devon Energy Production Co 13 Eclipse- 6 Enervest Operating LLC - 17 EQT Production Company 4 Gulfport Energy corporation 86 Halcon Operating Company Inc. 5 Hall Drilling -- 3 Hess Ohio Develop. LLC 31 HG Energy LLC 16 Hilcorp Energy Company 13 Mountaineer Keystone LLC 8 Petroleum Development Corp 12 R E Gas Development LLC 21 Sierra Resources LLC 3 Triad Hunter 4 XTO Energy Inc. 5

16 Utica Quarterly Production- Natural Gas OWNER_NAME COUNTY WELL_NAME OIL GAS BRINE DAYS oil/day gas/day ANTERO MONROE ET RUBEL ,049 ANTERO MONROE YONTZ UNIT ,779 ANTERO MONROE NORMAN UNIT ,264 GULFPORT BELMONT STUTZMAN ,042 ANTERO MONROE ET RUBEL ,411 ANTERO MONROE ET RUBEL ,455 GULFPORT BELMONT SHUGERT ,740 GULFPORT BELMONT MCCORT ,389 GULFPORT BELMONT MCCORT ,104 GULFPORT BELMONT SHUGERT ,931

17 Utica Quarterly Production- Condensate OWNER_NAME COUNTY WELL_NAME OIL GAS DAYS oil/day gas/day ANTERO RESOURCES CORP NOBLE MILEY UNIT 2H ,459 ANTERO RESOURCES CORP NOBLE WAYNE UNIT 2H ,609 ANTERO RESOURCES CORP NOBLE WAYNE UNIT 3HA ,681 GULFPORT ENERGY CORP. HARRISON BOY SCOUT 2-33H ,936 ANTERO RESOURCES CORP NOBLE WAYNE UNIT 4H ,608 GULFPORT ENERGY CORP. HARRISON LYON 3-27H ,954 CHESAPEAKE EXPL LLC (CELP) HARRISON RENSI SOUTH H ,398 GULFPORT ENERGY CORP. GUERNSEY GROH 1-12H ,361 PDC ENERGY INC GUERNSEY STIERS 3H ,047 CNX GAS COMPANY LLC NOBLE NBL11BHSU

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19 2014 Forecast Chesapeake Energy Drilled 450 wells in Utica Will be operating 7 to 9 drilling rigs in Utica in 2014 Dedicating 15% of their 2014 budget to Utica which equals to an estimated $810 million Gulfport Energy Gulfport has budgeted $594 million to $634 million to drill approximately 85 to 95 gross (64 to 71 net) wells in the Utica Gulfport is and will continue to operate 7 rigs in the Utica up from 3 during this same time last year 4 rigs in the wet gas window, 2 rigs in the dry gas window, and 1 in the condensate window.

20 2014 Forecast Hess Energy Has allocated $550 to develop the Utica Will develop 35 wells in the Utica during 2014 Hess will develop 23 and CONSOL will develop 12 PDC Energy $162 million is expected to be invested in the Utica Shale Ohio to spud 18 horizontal wells, 8 wells in northern acreage and 10 wells in its southern acreage Plans to add second rig in 2014

21 2014 Forecast Antero- Plans to develop 49 wells in Monroe and Noble Counties $450 budgeted to develop the Utica in 2014 Will run 4 rigs in the Utica EQT- Plans to develop 21 wells in the Utica Attempting to crack the code of the Utica Working with Enervest Enervest- Working to crack the code of the oil window Has two test wells in the volatile window "I'm optimistic. I think that if we had to say what part of the Utica has the most upside potential, it might be the volatile oil window - CEO John Walker

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23 Wild Card American Energy Partners New company formed by Aubrey McClendon Has acquired 260,000 acres mostly in Guernsey, Harrison, Jefferson, Belmont, Monroe and Noble. Well funded and plans to develop in a timely manner

24 Unemployment In The Top Permitted Counties Carroll County: 9.9% in 2011 down to 6.9% in August 2012 Harrison County: 10.2% in August 2011 down to 8.0% in August 2012 Columbiana County: 10% in 2011 down to 7.6% in August 2012 Jefferson County: 11.2% in 2011 down to 10.6% in August 2012 Guernsey County: 9.7% in 2011 down to 7.4 in August 2012 Noble County: 11.8% in 2011 down to 9.2% in August 2012 Monroe County: 10.7 in 2011 down to 9.1 in August 2012

25 Sales Tax Revenues Carroll County- Sales Tax Increase of 25% Harrison County- Sales Tax Increase of 22% Columbiana County- Sales Tax Increase of 11% Jefferson County- Sales Tax Increase of 10% Guernsey County- Sales Tax Increase of 12% Noble County- Sales Tax Increase of 20% Monroe County- Sales Tax Increase of 23%

26 Midstream Infrastructure

27 Processing Facilities 27

28 Midstream Activity Hilcorp and NiSource are partnering on an estimated $300 million investment to build pipeline and a natural-gas processing plant in eastern Mahoning County 50 miles of 20- to 24-inch wet-gas gathering lines being installed Columbiana and Mahoning as well as western Pennsylvania 200 million cubic feet per day cryogenic gas-processing plant will be located in Mahoning County Blue Racer Midstream LLC- $1.5 billion joint venture between Dominion and Caiman Energy II Pipeline Infrastructure for eastern Mahoning and Trumbull counties in Ohio and Mercer and Crawford counties in western Pennsylvania Projecting three new processing plants in Ohio, one in Mahoning County

29 Midstream Activity M3/Momentum- Utica East Ohio Buckeye $900 million project consisting of 200 miles of pipelines and two processing plants Kensington and Scio Kensington will be a state-of-the-art cryogenic processing plant capable of handling 800 million cubic feet per day. Scio Plant- 90,000-barrel-per-day fractionation plant with 870,000- barrel storage facility plus rail-loading facilities The plants about 40 miles apart will be connected by a 12- inch pipeline to carry natural gas liquids to Scio, in addition to a 24-inch high-pressure gas-collection line

30 Midstream Activity MarkWest Processing Plants in Harrison and Noble Counties Harrison plant, a $500 million plant, in the village of Cadiz s industrial park will feature 2 cryogenic processing plants as well as a de-ethanization facility Noble Plant- Named Seneca I, near Summerfield, will be a cryogenic gas processing facility capable of handling 200 million cubic feet per day Seneca II, in Noble County, is being planned. It will be a 200 million-cubic-feetper-day cryogenic facility that could open in late 2013 Developing pipeline infrastructure in Noble, Belmont, Harrison and Guernsey Counties and expects to have built up to 140 miles by the end of 2014 Just Announced New Joint Venture MarkWest/Kinder Morgan Processing Plant In Tuscarawas

31 NGL Pipelines ATEX Pipeline- 1,230-mile Appalachia-to-Texas (ATEX) Express Pipeline. 190,000 barrels per day of ethane takeaway capacity Bluegrass Pipeline- 1,100- mile NGL pipeline from Ohio, West Virginia and Pennsylvania to Eunice, Louisiana. 200,000 barrels per day of mixed NGLs take-away capacity

32 Bluegrass Pipeline

33 Natural Gas And NGL s For Manufacturing Companies Who Once Fled The U.S. Are Now Looking To Come Back Thanks To Low Natural Gas Prices In the U.S., it currently costs $300 to make a ton of ethylene, down steeply from $1,000 a few years ago According to an analysis by PricewaterhouseCoopers, it currently costs $1,717 to make it in Asia, where plants depend on high-priced oil instead of natural gas, and $455 per ton to make it in Saudi Arabia

34 Natural Gas And NGL s For Manufacturing

35 Natural Gas And NGL s For Manufacturing "Shale gas development is a bright spot in our economy and it has the potential to boost manufacturing employment by one million jobs, which are badly needed. - National Association of Manufacturers President and CEO Jay Timmons PwC expects an estimated $11.6 billion in cost savings by 2025, providing more incentives for increased manufacturing American chemical industry relies on abundant, affordable natural gas as a source of energy and as a raw material, or feedstock, for countless chemical products. It is estimated that a modest increase in natural gas supply from shale deposits would generate more than 400,000 new jobs in the United States, more than $132 billion in U.S. economic output and $4.4 billion in new annual tax revenues. The findings come in a new ACC report, Shale Gas and New Petrochemicals Investment: Benefits for the Economy, Jobs and U.S. Manufacturing.

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