Antero Gives Update On Utica Development
In January 2013, Antero announced in its corporate budget that it would be investing roughly $150 million in the Utica/Point Pleasant this year, while bringing in two rigs to develop its leasehold. On Monday, Antero updated its shareholders during a 1st quarter earnings call to inform them of progress-to-date in the Utica.
Staying true to its word, Antero is now operating two rigs in the wet/condensate window in the southern portion of the Utica/Point Pleasant. Both rigs are currently located in Noble County, roughly five miles apart in Seneca Township. The first rig is currently developing a three-well pad at the Milligan Unit located right off route 566, just south of Seneca Lake.
Antero has also returned the other rig back to the Miley well, a well the company developed last year with tremendous success. The Miley 5H had an initial production rate of seven million cubic feet (mmcf) per day, with a composition of 36 percent natural gas and 64 percent liquids. Given that mixture, the well had an initial production rate of 3,222 barrels of oil equivalent per day — making it Antero’s best well to date.
Antero has acreage in Guernsey, Noble, Monroe, Belmont and Harrison counties, comprising a total of 81,000 acres in the wet/condensate window. To date, Antero has completed six wells with one in production and has developed four more with two in different stages of completion.
The company currently has an estimated 35 million cubic feet equivalent (mmcfe) per day of net production, including approximately 2,300 bbl/d of NGLs and condensate shut in waiting for infrastructure to be built.
The MarkWest Seneca I plant is a 200 mmcf/d cryogenic gas processing facility, which is on pace to begin operations early in the fourth quarter of this year. MarkWest is also currently in the process of constructing of an additional 200 mmcf/d facility, called the Seneca II, which is also scheduled to be installed later this year.
This highlights an important fact about shale development, not just in Ohio but indeed all across the country. Sure, the industry creates jobs on the well-pad and up the supply chain while drilling and completing the wells. But the additional infrastructure that development brings — including MarkWest’s facilities — shows how the ripple effects of allowing responsible shale development, particularly in the form of new jobs and new economic activity.
Even more good news is that Antero will be keeping busy in the Utica, as the company has an additional 10 permitted wells waiting to be developed in Noble and Monroe Counties. This increased development will bode well for the counties, as Antero is helping to provide good paying jobs while boosting local economies.