Utica Shale is Breaking Records in Harrison County
There have been many important events that have happened on August 9th in US history. Jesse Owens won his fourth gold medal at the Berlin Summer Olympics, the Beatles were photographed for their infamous Abbey Road album cover, Richard Nixon resigned as President and Jerry Garcia passed away. But today’s announcement from Gulfport Energy is very exciting news for everyone in Ohio in general and Harrison County in particular.
A Gulfport Energy Corporation Report released yesterday announced the initial production numbers from their first well in the Utica Shale, the Wagner 1-28H, set Ohio’s new record for initial production from a Utica Shale well.
Producing a peak rate of 17.1 million cubic feet (“MMCF”) of natural gas per day, 432 barrels of condensate per day and 1,881 barrels of natural gas liquids per day assuming full ethane recovery and a natural gas shrink of 18%, or 4,650 barrels of oil equivalent per a day. These numbers are very promising for those developing the Utica Shale, especially in Harrison County.
This is only the second well in production in Harrison County since Utica Shale development began. Many of you are probably familiar with the first well in the County, the Buell Well developed by Chesapeake Energy last fall, which was the previous holder of the title for most productive well in Ohio.
To put in perspective the high rate of the Wagner well, the Buell well’s initial production rate was 9.5 million cubic feet of natural gas per day and 1,425 barrels per day of natural gas liquids and oil, or 3,010 barrels of oil equivalent per day. Comparing both of these numbers to the average vertical well in Ohio provides even more perspective as the average vertical well in Ohio produces about 50,000 cubic feet of natural gas per day or less than a barrel of oil per day.
With 16 permits issued since June and high production numbers for currently producing wells, Harrison County is looking to be a hot spot for development during the remainder of 2012.
But the two wells aren’t the only things breaking records in Harrison County. The Harrison County Recorders office recorded record-breaking document filings and fee collections already this year.
In just the first seven months of the years, the recorders office has filed 4,102 documents and collected more than $389,000 in fees.
If that wasn’t enough to make Recorder Boyer happy, Harrison County also recently recorded a record-breaking mortgage totaling $1 billion thanks to Utica Shale development.
Harrison County’s future is looking very promising thanks to Utica Shale development. Already, they have broken four records (two state records, two county records) in less than a year but there is even more activity contributing to Harrison County’s bright future.
The MarkWest facility in Harrison County will house both a gas processing plant as well as a fractionator plant. Two main components needed when developing a liquids rich gas such as the Utica Shale.
The M3 Midstream facility will be a central natural gas liquids (NGL) hub complex near Scio that will feature an initial NGL storage capacity of 870,000 barrels and fractionation capacity of 90,000 barrels per day, as well as a substantial rail-loading facility to get the products to market.
Things are definitely on the up and up in Harrison County. There is more money pouring into the county. They have two of the highest producing wells in the state. Furthermore, they have two different gas processing companies moving into their county to generate additional jobs for residents and revenue for the county. Things are looking pretty positive for the folks of Harrison County and we are only half way through Ohio’s first full year of Utica Shale development.