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Krugliak, Wilkins, Griffiths & Dougherty Co., L.P.A. presents

Utica Journal Discoveries - An Electronic Oil and Gas Newsletter

With offices located in the heart of the Utica Shale play in

Canton, Akron, Alliance, New Philadelphia & Sugarcreek, Ohio

                                       Editors Gregory W. Watts, Esq. and Ryan W. Reaves, Esq. 


Gulfport Energy Corporation Announces Agreements to Acquire 35,325 Net Utica Acres in Monroe, Belmont and Jefferson Counties, 14.6 MMcfpd of Production, 18 Gross Drilled Uncompleted Wells, a Fully Constructed Four Well Pad Location, an 11 Mile Gas Gathering System and Incremental Firm Transportation Commitments
Gulfport Energy Corporation
Gulfport Energy Corporation (Nasdaq: GPOR) announced that the Company has entered into agreements to acquire additional acreage in the Utica Shale, associated assets and incremental firm transportation commitments from American Energy - Utica, LLC ("AEU").  The acquisition highlights include:  Contiguous bolt-on acreage totaling approximately 35,325 net acres in Monroe, Belmont and Jefferson Counties, Ohio; an 11 mile gas gathering system currently in-place and operational in Monroe County; and an incremental 287,000 MMBtu per day of firm transportation commitments to provide access to favorable pricing points outside of the Appalachian Basin.  Pro forma for the full 35,325 net acres contemplated in the Belmont/Jefferson acquisition and the Monroe acquisition, after including other recent acquisitions in the Utica Shale, Gulfport's holdings of Utica Shale leasehold are expected to total approximately 262,000 gross (243,000 net) acres under lease in the core of the play.  Gulfport will become the operator of all the acreage acquired in these transactions with AEU and anticipates that this acreage will add approximately 200 net locations to its existing drilling inventory, based on 160-acre spacing.  The AEU acreage overlaps with a number of Gulfport's currently planned units and is located in the vicinity of existing interstate pipelines with gathering and compression infrastructure already under development.


American Energy Appalachia changes name to Ascent Resources, raises $1.4 billion
The Oklahoman

American Energy Appalachia Holdings LLC said it raised $1.4 billion and will change its name to Ascent Resources LLC as it transitions to an independent company.  Ascent said it also finalized a $977 million debt and equity financing package with affiliates of The Energy and Minerals Group, First Reserve and Aubrey McClendon.  The company said the financing package and asset sale will provide it with $700 million of liquidity after it repays some existing debt.  Jeff Fisher, Ascent's chairman and CEO, said the transactions put the company on a solid financial footing and will allow it to develop its assets in the Appalachian Basin.  "We have worked diligently over the last two years to create a leading asset position and build a team with the operational talent to grow our production, reserves and cash flow into the future," Fisher said in a news release.


EIA releases the June 2015 Drilling Productivity Report
U.S. Energy Information Administration (EIA)
The EIA released its June 2015 Drilling Productivity Report, noting an increase in production in the Utica Shale of 1 MBL of oil and an increase of 42 MMCF of natural gas month-over-month.  Compared to the August 2014 Drilling Productivity Report, the first to follow Utica Shale production, June's report represents a 147% increase in oil production and 181% increase in natural gas production.  A copy of the full report may be found here


United States EPA's Study of Hydraulic Fracturing for Oil and Gas and Its Potential Impact on Drinking Water Resources
United States Environmental Protection Agency (EPA)
The U.S. EPA has released a long-awaited study conducted at the request of the U.S. Congress reviewing the relationship between hydraulic fracturing and drinking water, looking specifically at the potential for hydraulic fracturing to impact the quality of quantity of drinking water sources.  The EPA concluded it found no evidence of "widespread, systemic impacts on drinking water resources in the United States" as a result of hydraulic fracturing operations.  A full copy of the report may be viewed here


Eclipse Resources Operational Update 

Eclipse Resources Corporation 

Eclipse Resources Corporation (NYSE: ECR) provided an operational update, reporting it strongly believes that it is on pace to meet or exceed both its second quarter and annual guidance.  For the month of April 2015, the Company estimated that its net production averaged approximately 190 MMcfe per day compared to its first quarter 2015 average of 159.6 MMcfe per day, or a 19% increase.  The Company's previously issued guidance for the second quarter of 2015 is 170 - 180 MMcfe per day.  Based on the results for the quarter to date, the Company expects to be at the high-end of its previously issued guidance for the quarter.  Additionally, the Company recently finished completion operations on its Sawyers pad in Monroe County, Ohio consisting of three wells with inter-lateral spacing of 730 feet.  This important spacing test is the Company's first spacing test below 1,000 feet between wells on its Dry Gas Utica Shale acreage, which if successful, could increase the Company's drilling locations by approximately 20%.  The Company expects to put these wells into sales early during the third quarter of 2015.  Benjamin Hulburt, Chairman, President and CEO said, "We are eagerly awaiting putting our Sawyers wells into sales early in the third quarter to evaluate the effect of the tighter well spacing.  Additionally, we are also excited about putting our Fuchs/Dietrich units to sales in our 'Dry Gas East' area early in 2016.  If these wells perform according to our 'managed choke' type curve expectations for that area, we would expect to put the units into sales at an initial combined production rate of approximately 150 gross MMcf per day (over 105 MMcf per day net)."  


Antero Resources Covered for 2015 with 94% of Production Hedged
Antero Resources

Antero reduced their budget for 2015 by ~40% to $1.8 billion from the $3.05 billion in 2014, with larger focus in the Utica going from 29% of the budget in 2014 to 41% of the budget in 2015.  Even with the decrease in budget, they expect a 40% increase in daily production in 2015 with an average net daily production of ~1,400 MMcfe/d.  This 2015 production growth goal leads the U.S. large cap E&P industry.  Antero has a vast amount of production covered for 2015 with 94% of production hedged at $4.42 per MMbtu.


EIA Releases June 2-15 Short-Term Energy Outlook  

U.S. Energy Information Administration

The US EIA released its Short-Term Energy Outlook, forecasting Brent crude will average $61/b in 2015 and $67/b in 2016; WTI is forecast to average $56/b in 2015 and $62 in 2016.  The EIA forecasts the Henry Hub spot price to average $2.97/MMBtu in 2015 and $3.32/MMBtu in 2016.  The full report may be viewed here