On Tuesday, PDC Energy sold off it’s non-core Colorado oil and gas assets to Caerus Oil and Gas for $185 million. According to PDC’s CEO Jim Trimble, they plan to use part of that money for drilling in the Utica Shale…
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PDC Energy, headquartered in Denver, CO, also has drilling operations in both the Marcellus and Utica Shale region. PDC released their first quarter 2013 update yesterday which shows production in the Marcellus/Utica was up a modest 5.9% year over year, and crude oil production (mostly in the Utica) is just starting to take off. PDC signed a midstream agreement in March for the Utica and expects development efforts in the liquids-rich Utica to “accelerate” this year.
The full update from PDC:
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Yesterday, PDC Energy announced they would nearly double their drilling budget for the Ohio Utica Shale this year (see PDC Nearly Doubles Utica Shale Drilling Budget for 2013). PDC’s announcement mentioned they will do a deal with MarkWest for pipelines and processing. Last night, MarkWest issued their announcement to say they’ve officially signed a deal with PDC to provide “gathering, processing, fractionation, and marketing services in the Utica Shale.” In their announcement, MarkWest took the opportunity to remind everyone this is the fourth Utica Shale driller they’ve signed up in the past nine months—the other three are Gulfport, Antero and Rex Energy—and to chronicle the work they’re doing at their Cadiz and Seneca processing facilities in the Utica Shale.
PDC Energy announced today they are nearly doubling their drilling investment in the Utica Shale—this year—from $53 million to $96 million. They plan to keep one drilling rig busy at all times in the Utica this year and drill a total of 11 Utica Shale wells. Their plans also include a deal with MarkWest Energy to provide midstream services for the wells they drill. PDC also plans to use a small amount—$9 million—for drilling in the Marcellus Shale.
PDC’s announcement today:
PDC Energy, formerly known as Petroleum Development Corp., announced Tuesday they are selling off “non-core” assets in the Piceance Basin (northwestern Colorado) and assets they own in northeastern Colorado for $200 million so they can invest the money in wet gas drilling in the Ohio Utica and Niobrara Shale plays.
PDC’s announcement from Tuesday:
The latest round of permits to drill new Utica Shale wells from the Ohio Dept. of Natural Resources (ODNR) includes 11 new permits, 8 of which went to Chesapeake Energy.
Here’s the latest Ohio Utica permit report (with grand totals by county) as of Dec. 12:
PDC Energy issued their 2013 forecast yesterday, along with an impressive production report on their first Utica Shale well, drilled in Guernsey County, OH. They plan to spend $53 million next year to drill and complete five horizontal Utica Shale wells in Ohio. Part of that budget will also be spent on additional acreage to lease—acreage contiguous to their existing leased acreage. (Landowners who are not yet leased, here’s an opportunity for you.)
PDC also has a joint venture in the Marcellus Shale and plans to allocate $48 million for its 50% share toward drilling and completing 14 wells and certain midstream infrastructure projects (pipelines/processing) .