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Which major players are investing in the Utica Shale?

Ingrid Pan, CFA

Why investors should pay attention to the Utica Shale oil play (Part 3 of 7)

(Continued from Part 2)

Chesapeake Energy and American Energy Partners aren’t alone in the Utica Shale

Antero Resources (currently private, but has recently filed for an initial public offering)

Antero Resources has 101,000 net acres in eastern Ohio’s Utica Shale. The company has drilled and completed 11 horizontal Utica Shale wells, with three online and eight awaiting start-up. The three wells online have estimated net production of 25 MMcfe (millions of cubic feet equivalent) per day, including 1,500 barrels per day of liquids. As of June 30, 2013, the company had 279 billion cubic feet equivalent of reserves in the play. Antero is currently operating three drilling rigs in Ohio.

Anadarko (APC)

In Anadarko’s 2013 10-K, it disclosed that in 2012, it had drilled five exploration wells in its 411,000 gross acre position. It completed seven wells that are currently in the production testing and evaluation phase. The company has said little about the Utica Shale through 2013.

CONSOL Resources (CNX) and Hess Corp. (HES)

CONSOL Resources and Hess Corp. operate a joint venture (or JV) in the Utica Shale. In total, the JV covers 70,000 acres in the core area (35,000 acres net to each party). In non-core areas, the JV covers 90,000 acres (45,000 net to each party). For 2013, between the two parties, 27 gross wells are planned, with 11 to be drilled by CONSOL and 16 to be drilled by Hess.

Halcon Resources (HK)

Halcon Resources (HK) has ~140,000 net acres in the Utica Shale. It expects to spend ~$200 million in the play in 2013, and to spud 20 to 25 gross operated wells.

Continue to Part 4

  • Part 1 - Introduction: The Utica Shale is an important emerging oil play
  • Part 2 - Chesapeake Energy and its former CEO suggest huge Utica potential
  • Part 4 - Which major players are investing in the Utica Shale? (Continued)