Appalachian Basin

Gulfport Report Shows More Promise, Potential in Utica Shale

In preparation for their third quarter earnings call scheduled for next Wednesday, Gulfport Energy released results for two of their Utica Shale wells that have come on line with in the past month.  Gulfport has seen great success in the Utica so far by producing two of the top wells in the state.  While these two new wells are not producing at the same rate of the previously announced wells, they both look very promising for Gulfport’s leasehold.

The Ryser 1-25H well in Harrison County is located a couple miles south of Clendening Lake.  The Ryser 1-25H was drilled to a vertical depth of 8,122 feet with an 8,291 foot horizontal lateral. Following the resting period, the Ryser 1-25H had an initial peak flow rate of 5.9 Million mcf a day, while also producing 1,488 barrels of condensate – a natural gas liquid – per day.

The natural gas tested at 1,160 BTU making it liquids-rich, another positive sign of the Utica Shale living up to it’s appeal.  Assuming full ethane recovery – the process of removing the natural gas liquids portions from the high btu produced natural gas – the composition above is expected to produce an additional 110 barrels of natural gas liquids per million mcf of natural gas and result in a natural gas shrink of 21%, equaling to an additional 649 barrels of natural gas liquids per a day.

Gulfport’s second well to come on line is the Groh 1-12H.  The Groh 1-12H is located in Northeastern Guernsey County just west on Antrim.  The Groh 1-12H was drilled to a vertical depth of 7,327 feet with a 5,414 foot horizontal lateral.  Following the resting period, the Groh 1-12H had an initial peak flow rate of 2.8 million mcf a day while also producing 1,186 barrels of condensate per day.

The natural gas tested at the Groh well had a slightly higher btu rating than the Ryser measuring at 1,247 btu compared to the Ryser’s 1,160 btu.  Assuming full ethane recovery, the Groh’s natural gas composition is expected to produce an additional 131 barrels of natural gas liquids per a million mcf of natural gas and resulting in a natural gas shrink of 18% equaling to an additional 367 barrels of natural gas liquids.

The Ryser well in Harrison County shows better numbers in terms of production but a lot of the added production is mostly caused by the longer lateral used to develop the Ryser well.  To make an apples-to-apples comparison, we must multiply the Ryser well production by .6665 or decrease by roughly a third to anticipate the added production from the additional 2,708 feet of lateral developed.

By using this formula the Ryser well would produce 3.9 million mcf a day and 991 barrels of condensate a day if the lateral was 5,414 feet, the same of the Groh.  Now in comparison, the Groh still falls short of the Ryser in terms of natural gas production by 1.1 million mcf a day, but actually bests the Ryser in terms of condensate production by producing an additional 195 barrels of condensate a day.

Both wells show very promising results for Utica Shale development in both Harrison and Guernsey County.  As we see continued, we will be able to get a better picture of how both of these counties will fair in terms of production.  So far, these numbers will surely increase interest from companies looking to develop in Ohio’s Utica Shale.

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