UPDATE (02/4/2012, 11:00 am ET): The Stutzman 1-14H, which we reported on in January, has now been quantified and it looks like the well will be posting great revenue for Gulfport and the landowners receiving royalties.  It was recently reported by the Wheeling Intelligencer, the well could possibly be producing $100,000 a day when the well is up and running in June.

The well produced a whopping 21 million mcf a day while also producing an additional 945 barrels of natural gas liquids a day once the gas is processed.  Given these solid production numbers, Tim Carr, the Marshall Miller Professor of Energy at West Virginia University, estimates the Stutzman well has the potential to produce $100,000 a day.

“Twenty-one million cubic feet per day is very impressive. That is $63,000 per day at $3 per Mcf, add in the 945 barrels of natural gas liquids at $50 per barrel, and you are talking about something well above $100,000 per day in revenue- Tim Carr, the Marshall Miller Professor of Energy at West Virginia University (The Intelligencer, 1/27/13)

This kind of revenue will not only prove to be a profitable well for Gulfport but generate new revenue for both the landowner and the county.  The landowner will receive regular royalty payments from the well while the county will receive property tax on the well in the form of an ad valorem tax.

The Stutzman well is scheduled to come on line in June, during that time the gas will most likely be transported by pipeline to Markwest’s Seneca processing plant in Noble County to extract the natural gas liquids from the liquids rich gas.

—Original post from January 21, 2012—

Gulfport Energy released the results of two new wells in their Utica/Point Pleasant operations.  Following the results of their latest three wells, these two new wells have some large shoes to fill.  The wells, located in Harrison and Belmont counties, both showed encouraging results for the company.

The first well, the Stutzman 1-14H, is located just 4 miles south of Barnesville in Belmont County off route 800.  The well was tested after just a 12 day resting period, showing Gulfport is still tooling with different resting time frames as they become more familiar with the Utica/Point Pleasant.

The well, which has a 8,634 foot lateral, tested at an average sustained four hour rate of 21.0 MMCF per day of natural gas.  In addition, the well produced 945 barrels of natural gas liquids.  Given the composition and amount of natural gas produced and barrels of condensate produced, the well would be producing a peak initial flow rate of 4,060 barrels of oil equivalent per day.

The natural gas composition was tested at 1,078 BTU’s.  Given the composition, the natural gas produced from the Stutzman 1-14H would produce an additional 45 barrels of natural gas liquids per mcf assuming full ethane recovery.

Gulfport Energy’s second well reported on is the Clay 1-4H, located in Harrison County, just north of Freeport.  Coincidentally both wells are located off of Route 800.  The well was tested following a 75 day resting period.  The Clay 1-4H, which has a 7,372 foot lateral,  well tested at an average sustained 12 hour rate of 5.9 MMCF per day of natural gas.  In addition the Clay 1-4H produced 747 barrels of condensate per day.

The natural gas composition was tested at 1,258 BTU’s, which is significantly more liquids rich than the Stutzman 1-14H. With the added BTU’s from the gas, the Clay 1-4H is expected to produce an additional 129 barrels of NGLs per MMCF of natural gas assuming full ethane recovery.  Given the composition and amount of natural gas produced and barrels of condensate produced, the well would be producing a peak initial flow rate of 2,226 barrels of oil equivalent per day.

Gulfport Energy is waiting on pipeline infrastructure to be developed near both wells.  The company is hopeful the Stutzman 1-14H will be flowing into a sales pipeline in June, while the Clay 1-4H will be flowing into a sales line in April.

Both wells continue to show tremendous promise for Gulfport Energy and their Utica/Point Pleasant acreage position.  While they are still trying different completion techniques and resting stages, the company continues to come in with solid results.  As they get the science behind these wells configured, it looks as though Harrison County  and Belmont County will continue to be a hot area for Utica/Point Pleasant Shale development.