$13M in gas, oil in past year of shale production

YOUNGSTOWN — Nine Utica Shale wells in Eastern Ohio produced more than 46,000 barrels of oil and about 2.6 billion cubic feet of gas during 2011, according to an annual report released Monday by the Ohio Department of Natural Resources.

Based on current commodity prices, those natural resource reserves are worth at least $13 million.

Those numbers were met with mixed reviews, partly because of limited sample size, but also because all nine wells, operated by Oklahoma City-based Chesapeake Energy Corp., have produced for fewer than six months.

The five commercially-producing wells, on average, produced about 61.5 barrels of oil daily — the average production per vertical well is currently about 2 barrels daily — and about 17 million cubic feet of natural gas.

“The initial reports indicate a very significant potential for oil and gas extraction in Ohio,” said Carlo LoParo, ODNR communications officer.

Four other wells are in the completion phase, which comes before production begins. Some reserves can be extracted during the completion phase.

Figures are reported by annual production and number of days of production. Wet gases are combined with dry gases. Averages are calculated by dividing production figures by days of production.

The most productive well, in Harrison County’s Archer Township, known as the Buell well, produced 13,472 barrels of oil and more than 1.5 billion cubic feet of gas during a 198-day period. The well averaged 68 barrels of oil and 7.7 million cubic feet of gas per day.

The well produced 300 times more gas daily than the average vertical well, according to ODNR.

It’s total gas production represented 2 percent of all gas production among 49,000 wells in the state, said LoParo.

A well in Carroll County’s Augusta Township produced 12,334 barrels of oil and 322 million cubic feet of gas during a 206-day period.

The well averaged 60 barrels of oil and 1.5 million cubic feet of gas per day.

Chesapeake last September had reported at least at least 3.1 million cubic feet per day of natural gas production at those two wells and a third, also in Carroll County.

Chesapeake voluntarily released those figures early.

The company did not plan to release a statement Monday.

Production for all Utica Shale wells in 2011 was to be reported by last Friday to ODNR.

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