ohio oil & gas association 68th annual winter …...top 12 operators –by average ip (mcfe) 0 4...
TRANSCRIPT
The Debrosse Memorial Report 2017 Oil & Gas Activity in Ohio
71st Annual Winter Meeting
Prepared by:Marty Shumway – Locus Bio-Energy Solutions LLC; Shumway Resources LLC
Bill Arnholt - Northwood Energy CorporationTim Knobloch - James Knobloch Petroleum Consultants, Inc.
The Debrosse Memorial Report 2017 Oil & Gas Activity in Ohio - Outline
• General overview of Ohio oil & gas production
• Permits & completion summaries
• Operator activity (footage drilled, number of wells)
• Activity by county (footage drilled, number of wells)
• IP analysis for horizontal wells
• Change of owners
• Production summary
• Utica EUR summary
• Class II injection well summary
Oil & Gas Production in Ohio
• More than 275,000 oil and gas wells drilled in Ohio since 1860
• More than 50,000 producing wells in 49 of 88 Ohio counties
0
1000
2000
3000
4000
5000
6000
BEREA OHIO SHALE CLINTON TRENTON ROSE RUN CAMBRIAN
NW Ohio Lima-Indiana
Technologic Advance: Hydraulic FracturingClinton/Berea Plays
Morrow County Trempealeau Play
Clinton PlayTight Gas
Sands
Clinton Play
History of Ohio Wells Drilled by Year and Reservoir
2017 Permit & Completion Activity
PHOTOGRAPHS COURTESY OF LARRY WICKSTROM
Permits & Completions - 2011 - 2017
TYPE 2012 2013 2014 2015 2016 2017
▲
(’16 to’17) ▲%
PERMIT 903 1,608 1,659 997 561 931 370 66%
COMPLETION 553 580 654 534 620 449 -171 -28%
PLUG 473 630 629 511 439 413 -26 -6%
TOTAL 1,929 2,818 2,942 2,318 1,113 1793 680 61%
2017 Completions – OutcomesWELL STATUS COUNT % OF TOTAL
PRODUCING 341 75.9%
NOT DRILLED 71 15.8%
FINAL RESTORATION 10 2.2%
WELL DRILLED 9 2.0%
PLUGGED BACK 9 2.0%
PLUGGED & ABANDONED 3 0.7%
LOST HOLE 2 0.4%
UNKNOWN 2 0.4%
CANCELLED 1 0.2%
STORAGE WELL 1 0.2%
TOTAL 449 100
Permitted Formations
0
100
200
300
400
500
600
700672
165
36 31 9 5 5 4 1 1 1 1
2017
CompletionsPermits to DrillPermits to Plug
Permit and Completions By Month
JAN FEB MAR APRIL MAY JUNE JULY AUG SEP OCT NOV DEC
5679
11595
73 73 6279
113
63 5568
4020
36
1129 27
35
50
32
4129
28
17 17
42
18 3364
25
5744
37
2633
Permits Completions Plugging Permits
DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED” OR “CANCELLED” STATUS.
Operators Completing Wells By Year
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
116 127147
162182
143126 121 112 113
89 8771
45
DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED” OR “CANCELLED” STATUS.
2017 Wells Completed – Type377 Total Completions
Horizontal 317, 84%
Vertical 57, 15%
Directional2, 0%
Unknown2, 1%
DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED” OR “CANCELLED” STATUS.
2017
Horizontal Completions By
Formation
2017
Vertical Completions By
Formation
2017Class II
Injection Well Completions
By TD Formation
2017 Completions By Month
JAN FEB MAR APRIL MAY JUNE JULY AUG SEP OCT NOV DEC
35
11
31
8
25 2328
48
31 31
2125
5
9
5
3
44
7
2
1
10
8 3
Horizontal Vertical
VERTICAL COUNT INCLUDES “DIRECTIONAL” AND “UNKNOWN”DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED”OR “CANCELLED” STATUS.
2017 Completions – Top 10 CountiesCOUNTY TOTAL % TOT HORIZONTAL VERTICAL
BELMONT 124 33% 121 3
MONROE 48 13% 46 2
JEFFERSON 43 11% 39 4
HARRISON 38 10% 33 5
GUERNSEY 26 7% 22 4
NOBLE 25 7% 24 1
CARROLL 23 6% 22 1
LICKING 9 2% 0 9
COSHOCTON 7 2% 0 7
COLUMBIANA 6 2% 6 0
OTHER 28 7% 4 24
TOTAL 377 100% 317 60
VERTICAL COUNT INCLUDES “DIRECTIONAL” AND “UNKNOWN”.DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED” OR
“CANCELLED” STATUS. TOP 3 COUNTIES INCLUDE 57% OF COMPLETIONS.
121
46 39 3322 24 22
6 4
3
24
54 1 1
9 7 024
HORIZONTAL VERTICAL
2017 Completions By County
VERTICAL COUNT INCLUDES “DIRECTIONAL” AND “UNKNOWN”.DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED” OR
“CANCELLED” STATUS. TOP 3 COUNTIES INCLUDE 57% OF COMPLETIONS.
Hess Ohio – CNXGUE10N7W #H-8
PHOTOGRAPH COURTESY OF LARRY WICKSTROM
OPERATOR% TOTWELLS
2017 WELLS
▲%2016
ASCENT RESOURCES UTICA LLC 21% 79 20%
CHESAPEAKE EXPLORATION LLC 15% 58 -41%
GULFPORT ENERGY CORPORATION 12% 47 -24%
RICE DRILLING D LLC 11% 42 133%
ECLIPSE RESOURCES I LP 7% 26 -43%
ANTERO RESOURCES CORPORATION 6% 22 -66%
STATOIL USA ONSHORE PROP INC 3% 11 22%
CNX GAS COMPANY LLC 3% 11 -62%
ARTEX OIL COMPANY 2% 9 29%
XTO ENERGY INC. 2% 9 -63%
EM ENERGY OHIO LLC 1% 5 N/A
HILCORP ENERGY COMPANY 1% 4 -43%
Top 12 Most Active Operators – By Wells
DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED” OR
“CANCELLED” STATUS. TOP 12 OPERATORS COMPLETED 87% OF TOTAL.
OPERATOR% TOTALFOOTAGE
2017FOOTAGE
▲%2016
ASCENT RESOURCES UTICA LLC 23% 1,413,539 41%
CHESAPEAKE EXPLORATION LLC 16% 990,645 -38%
GULFPORT ENERGY CORPORATION 14% 857,085 -20%
RICE DRILLING D LLC 13% 774,697 160%
ECLIPSE RESOURCES I LP 8% 493,524 -32%
ANTERO RESOURCES CORPORATION 7% 393,460 -64%
CNX GAS COMPANY LLC 4% 224,980 -46%
STATOIL USA ONSHORE PROP INC 4% 221,831 96%
XTO ENERGY INC. 3% 186,495 -59%
EM ENERGY OHIO LLC 1% 86,414 N/A
R E GAS DEVELOPMENT LLC 1% 61,990 -54%
HILCORP ENERGY COMPANY 1% 60,950 -43%
TOTALS 96% 5,765,610 -21%
Top 12 Most Active Operators – By Footage
DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED” OR
“CANCELLED” STATUS. TOP 12 OPERATORS COMPLETED 96% OF TOTAL.
Top 12 Most Active Counties – By Wells
COUNTY% TOTWELLS
2017WELLS
▲%2016
BELMONT 33% 124 3%
MONROE 13% 48 -45%
JEFFERSON 11% 43 79%
HARRISON 10% 38 -63%
GUERNSEY 7% 26 -42%
NOBLE 7% 25 -55%
CARROLL 6% 23 -51%
LICKING 2% 9 -31%
COSHOCTON 2% 7 0%
COLUMBIANA 2% 6 -25%
KNOX 1% 5 -67%
WAYNE 1% 2 100%
OPERATORS REPORTED COMPLETIONS IN 25 OF 88 COUNTIES IN 2017
VERSUS 36 IN 2016. TOP 12 COUNTIES – 94% TOTAL WELLS
Top 12 Most Active Counties – By Footage
COUNTY% TOT
FOOTAGE2017
FOOTAGE▲%2016
BELMONT 38% 2,314,231 19%
MONROE 16% 936,662 -27%
JEFFERSON 13% 788,476 117%
HARRISON 9% 544,914 -65%
NOBLE 7% 437,283 -49%
GUERNSEY 7% 405,150 -37%
CARROLL 6% 365,317 -48%
COLUMBIANA 2% 96,494 -18%
LICKING 0.5% 30,697 -27%
COSHOCTON 0.3% 17,493 -35%
KNOX 0.2% 14,847 -45%
ASHLAND 0.2% 10,915 90%
TOP 12 COUNTIES ACCOUNTED FOR 99% OF TOTAL FOOTAGE DRILLED
IN 2017.
Drilling Footage and Wells – By Year
YEARTOTAL
FOOTAGE WELLSFOOTAGEPER WELL
AVG IP GAS
AVG IP OIL
2017 6,033,677 378 16,263 9,245 245
2016 7,955,832 594 14,206 6,095 196
2015 6,587,714 534 12,336 5,432 279
2014 5,854,693 654 10,398 2,703 122
2013 3,898,408 569 7,570 1,361 97
2012 2,580,821 511 5,388 481 34
2011 1,832,121 454 4,192 136 7
2010 2,224,761 633 3,883 50 3
2009 3,036,431 927 3,767 223 2
2008 4,249,247 1149 3,750 54 3
2007 4,030,319 1094 3,928 70 3
2006 3,601,375 945 3,927 79 4
2005 2,718,759 673 4,095 123 4
2004 2,324,308 589 4,107 133 4
2003 2,419,254 561 4,359 88 5
2016 TO 2017 AVG IP-GAS UP 52%; AVG IP-OIL UP 27%2016 TO 2017 AVG FOOTAGE PER WELL UP 14%
Change of Owner – Wells By Year
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1000
2000
3000
4000
5000
6000
7000
8000
2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
33793568
4411
2412
7438
3054
2274
5908
4758
11341696
31423603
1694
6974
M&R INVESTMENTS, THREE LARGE TRANSFERS – 1585 WELLS FROM ENERVEST; 1371 WELLS FROM ATLAS NOBLE; 649 WELLS FROM VIKING RESOURCES.
Top 12 Counties – By Average IP (MCFE)
COUNTY WELLSAVG IP OIL
(BBLS)AVG IP GAS
(MCF) AVG IP (MCFE)
GUERNSEY 20 630 4,411 18,269
HARRISON 33 506 5,364 16,501
CARROLL 22 508 2,535 13,715
MONROE 39 0 13,696 13,696
JEFFERSON 38 0 13,511 13,519
BELMONT 109 0 13,244 13,252
NOBLE 24 150 7,450 10,755
COLUMBIANA 6 0 5,324 5,324
LICKING 7 13 66 346
KNOX 5 6 8 149
COSHOCTON 4 1 0 22
COUNTIES WITH LESS THAN 4 WELLS ARE NOT INCLUDEDMCFE CALCULATED USING OIL GAS EQUIVALENCE OF 22:1
Top 12 Operators – By Average IP (MCFE)
OPERATOR WELLS
AVG IP OIL
(BBLS)
AVG IP GAS
(MCF)AVG IP (MCFE)
ASCENT RESOURCES UTICA LLC 72 238 15,584 20,815
CNX GAS COMPANY LLC 10 0 15,660 15,660
STATOIL USA ONSHORE PROP INC 9 0 14,965 14,965
GULFPORT ENERGY CORPORATION 47 1 13,438 13,455
ECLIPSE RESOURCES I LP 24 228 8,353 13,369
CHESAPEAKE EXPLORATION LLC 54 298 6,616 13,179
R E GAS DEVELOPMENT LLC 4 316 3,787 10,728
ANTERO RESOURCES CORPORATION 22 164 6,985 10,590
XTO ENERGY INC. 9 0 8,920 8,920
RICE DRILLING D LLC 29 0 4,523 4,523
HILCORP ENERGY COMPANY 4 0 3,501 3,501
ARTEX OIL COMPANY 4 20 95 530
OPERATORS WITH LESS THAN 4 WELLS ARE NOT INCLUDED. MCFE CALCULATED USING OIL GAS RATIO OF 22:1
Top 12 Operators – By Average IP (MCFE)
0
4
8
12
16
20
24 20
.8
15
.7
15
.0
13
.5
13
.4
13
.2
10
.7
10
.6
8.9
4.5
3.5
0.5A
vera
ge IP
(M
CFE
)
Tho
usa
nd
s
OPERATORS WITH LESS THAN 4 WELLS ARE NOT INCLUDED. MCFE CALCULATED USING OIL GAS RATIO OF 20:1
2017Top 10 Operators – By
Average IP (MCFE)Well Locations
Ohio Oil & Gas Production
PHOTOGRAPH COURTESY OF LARRY WICKSTROM
Producing Wells – By Year
0
10000
20000
30000
40000
50000
60000
1984 1989 1994 1999 2004 2009 2014
CO
UN
T O
F W
ELLS
YEAR
PR Status (ODNR) Wells Reporting Production
YEAR 2017 WELL COUNT IS ESTIMATED
Production Summary – Oil By Year8
.1
7.3
7.1
7.1
7.0
6.6 6.8
6.7
5.9
5.4 5.7 6.3
5.6
5.2
5.0
5.0
5.0 5.0 5.1
4.4 4.8
4.6
4.5
4.3
4.0
3.5
3.3
3.1
0.6 3
.7
11
.0
22
.0
17
.5
16
.5
0
5
10
15
20
25
30
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
Mill
ion
Bar
rels
of
Oil
Conventional Oil Horizontal Oil
YEAR 2017 CONVENTIONAL PRODUCTION IS ESTIMATED BY USING AVERAGE ANNUAL PERCENT DECLINE FOR YEAR 2015-2016.
2017 OIL PRODUCTION IS ESTIMATED TO BE APPROXIMATELY
6% LESS THAN 2016 PRODUCTION
2017 CONVENTIONAL OIL PRODUCTION ESTIMATED2017 HORIZONTAL OIL ESTIMATED
(ONLY FIRST 3 QUARTERS AVAILABLE)
Production Summary – Gas By Year1
21
10
4
11
3
11
8
11
5
10
6
11
1
10
6
10
8
90 92
89
88
85
83
77 79
76 82
81
79
78
72
66
60
52
52
52
13
10
0 45
2
95
4
1,3
89 1,7
17
0
200
400
600
800
1000
1200
1400
1600
1800
20001
99
0
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
Bill
ion
Cu
bic
Fe
et o
f G
as
Conventional Gas Horizontal Gas
YEAR 2017 CONVENTIONAL PRODUCTION IS ESTIMATED BY USING AVERAGE ANNUAL PERCENT DECLINE YEAR 2015-2016.
2017 GAS PRODUCTION IS ESTIMATED TO BE APPROXIMATELY
23% MORE THAN 2016 PRODUCTION
2017 CONVENTIONAL GAS PRODUCTION ESTIMATED2017 HORIZONTAL GAS ESTIMATED
(ONLY FIRST 3 QUARTERS AVAILABLE)
Ohio Oil Production 1886-2015
HISTORICAL DATA COURTESY OF WICKSTROM GEOSCIENCE, LLC
0
5
10
15
20
25
30
1877 1887 1897 1907 1917 1927 1937 1947 1957 1967 1977 1987 1997 2007 2017
MIL
LIO
NS
OF
BA
RR
ELS
OF
OIL
YEAR
189623.9 MMBLS
TRENTON
19453.0 MMBLS
EOR
196415.9 MMBLS
TREMPEALEAU
198415.3 MMBLS
CLINTON
20104.8 MMBLS
2016
20.8 MMBLS
UTICA
1952HYDRAULIC
FRACTURING
2017
19.6 MMBLS
UTICA
Ohio’s Aging Wells
0
1000
2000
3000
4000
1
10
100
1000
10000
100000
0 5 10 15 20 25 30 35 40 45 50
CO
UN
T O
F W
ELL
OIL
(B
BLS
) /
GA
S (M
CF)
WELL AGE - YEARS
Average Annual Oil Average Annual Gas Count of Wells
54% OF ~53,000
PRODUCING WELLS ARE BETWEEN
26 & 40 YEARS OLD
UTICA
PRODUCING WELLS BY
OPERATOR (More than 10 Wells)
Through
12/31/2017
1stQtr
2013
2ndQtr
2013
3rdQtr
2013
4thQtr
2013
1stQtr
2014
2ndQtr
2014
3rdQtr
2014
4thQtr
2014
1stQtr
2015
2ndQtr
2015
3rdQtr
2015
4thQtr
2015
1stQtr
2016
2ndQtr
2016
3rdQtr
2016
4thQtr
2016
1stQtr
2017
2ndQtr
2017
3rdQtr
2017
Series1 8.30 15.07 33.51 43.06 67.28 88.62 131.9 164.7 183.5 221.8 245.8 301.9 329.5 334.2 360.6 364.3 371.9 388.5 460.8
8 1534 43
67
89
132
165184
222246
302
330
334
361 364
372
389
461
0
50
100
150
200
250
300
350
400
450
500
Gas
in B
CF
24% PRODUCTION
GROWTH1st QTR 2017 THROUGH
3rd QTR 2017
Utica – Gas Production By Quarter
1stQtr
2013
2ndQtr
2013
3rdQtr
2013
4thQtr
2013
1stQtr
2014
2ndQtr
2014
3rdQtr
2014
4thQtr
2014
1stQtr
2015
2ndQtr
2015
3rdQtr
2015
4thQtr
2015
1stQtr
2016
2ndQtr
2016
3rdQtr
2016
4thQtr
2016
1stQtr
2017
2ndQtr
2017
3rdQtr
2017
Series1 0.33 0.57 1.31 1.43 1.94 2.46 3.01 3.55 4.43 5.58 5.71 6.22 5.49 4.84 3.95 3.58 3.90 4.04 4.21
0.30.6
1.3 1.4
1.9
2.5
3.0
3.6
4.4
5.6
5.7
6.2
5.5
4.8
4.0
3.6
3.9 4.04.2
0
1
2
3
4
5
6
7
Oil
in M
illio
ns
of
Bb
lsUtica – Oil Production By Quarter
17% PRODUCTION
GROWTH4th QTR 2016
THROUGH3rd QTR 2017
20121stQtr
2013
2ndQtr
2013
3rdQtr
2013
4thQtr
2013
1stQtr
2014
2ndQtr
2014
3rdQtr
2014
4thQtr
2014
1stQtr
2015
2ndQtr
2015
3rdQtr
2015
4thQtr
2015
1stQtr
2016
2ndQtr
2016
3rdQtr
2016
4thQtr
2016
1stQtr
2017
2ndQtr
2017
3rdQtr
2017
Series1 78 135 205 288 397 476 562 714 828 926 1020 1134 1265 1351 1415 1492 1561 1613 1691 1804
78135
205288
397476
562
714
828926
1020
1134
12651351
14151492
15611613
1691
1804
0
200
400
600
800
1000
1200
1400
1600
1800
2000
We
lls O
nlin
e
Utica – Wells Online By Quarter
16%INCREASE IN
WELLS ONLINE
4th QTR 2016 THROUGH
3rd QTR 2017
Utica EUR Estimation
• Used operator reported production to ODNR through 3rd Qtr 2017
• Calculated Estimated Ultimate Recovery (EUR) values for each well
• Adjusted EUR to gas equivalents (BCFE)• used GAS/OIL ratio of 22:1 (based on current market prices)
• Determined treated length (stimulated interval) and then calculated EUR per 1000’ of lateral
EUR Data Provided by James Knobloch Petroleum Consultants, Inc.
UTICAAVERAGE EUR
PER 1000’ LATERAL BY TOWNSHIP
USING GAS:OIL RATIO
OF 22:1(Count of data
points per township posted)
EUR Data Provided by James Knobloch Petroleum
Consultants, Inc.
Class II Injection Wells
PHOTOGRAPH COURTESY OF LARRY WICKSTROM
0
5
10
15
20
25
30
35
40
Wat
er
Vo
lum
e In
ject
ed
(B
bls
)
2011 2012 2013 2014 2015 2016 2017
Series2 12,689,735 14,675,408 17,474,821 25,277,646 31,681,718 29,359,014 35,814,517
16%
14%
29%
20%
-8%
22%
Annual Injection Volume - Statewide
Top 12 Class II Injection Wells – By Volume
THE TOP 12 WELLS ACCOUNTED FOR 48% OF TOTAL WATER INJECTED IN 2017
OPERATOR COUNTY WELLVOLUME
(BBLS)
K & H PARTNERS LLC ATHENS K & H PARTNERS LLC (SWIW #10) 2,474,972
REDBIRD DEVELOPMENT WASHINGTON RED BIRD (SWIW #18) 1,942,606
ELKHEAD GAS & OIL TUSCARAWAS MOZENA (SWIW #13) 1,702,971
ENVIRONMENTAL ENERGY SOL. MUSKINGUM PATTISON TRUST (SWIW #30) 1,638,307
BUCKEYE BRINE LLC COSHOCTON ADAMS (SWIW #11) 1,402,324
BUCKEYE BRINE LLC COSHOCTON ADAMS (SWIW #10) 1,337,282
HEINRICH ENTERPRISES WASHINGTON HEINRICH UNIT 1,221,333
NORTH LIMA DISPOSAL MAHONING NORTHSTAR LUCKY (SWIW #12) 1,183,467
CHESAPEAKE ENERGY TUSCARAWAS CHK TUS SWD (SWIW #14) 1,182,813
HEINRICH ENTERPRISES WASHINGTON HEINRICH UNIT 1,140,916
K & H PARTNERS LLC ATHENS K & H PARTNERS LLC (SWIW #8) 1,071,727
CLEARWATER FIVE LLC GUERNSEY SHIELDS ONE (SWIW #17) 1,043,542
THANK YOU!Marty Shumway
(614) 846-1391
Special Thanks To:
Ohio Oil and Gas Association
Bill Arnholt, Northwood Energy
Tim Knobloch, James Knobloch Petroleum Consultants, Inc.
Larry Wickstrom, Wickstrom Geoscience, LLC