Two Fierce Competitors Join Forces to Drill in OH Utica Shale
Drilling company Magnum Hunter Resources announced a joint operating deal yesterday with Eclipse Resources to drill 12 Marcellus and 12 Utica Shale wells on 1,950 acres in Monroe County, OH over the next three years. Both companies together will invest $200 million in the program.
The reason for the partnership between these fierce competitors? According to Magnum Hunter, it’s due to the “treacherous terrain in this region” of the state. They want to pool resources and keep costs down. Of course, it also helps that Eclipse will start using Magnum’s pipeline system (Eureka Hunter Pipeline), providing more revenue for the midstream area of the business.
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Some interesting facts about Ohio Utica Shale drilling for 2012, and predictions for 2013…Fact number one: There are 45 producing horizontal Utica Shale wells in Ohio as of Dec. 31, 2012. They produce 40% as much natural gas as all 64,000 vertical-only natural gas wells in the state produce. (You read that right!) Conclusion: When Ohio reaches 113 producing Utica Shale wells (sometime in 2013), it will equal the entire natural gas production of all 64K vertical natural gas wells in the state. Behold the miracle of hydraulic fracturing.
Once again, anti-fracking elected political leaders in New York (people who need to be voted out of office, see their names below) are trying to pressure the waffling Gov. Andrew Cuomo into extending the new public comment period from 30 days to 90 days. A group of them sent a letter to Cuomo and DEC Commissioner Joe Martens requesting the extension (dated Dec. 21, copy of the letter embedded below).