Utica first mover Gulfport completing first Ohio well
New Orleans (Platts)--29Mar2012/219 pm EDT/1819 GMT
The first well of one of the Utica Shale's first movers, Oklahoma
City-based Gulfport Energy, has completed its vertical stage and has started
a horizontal lateral, Gulfport Chief Financial Officer Michael Moore said
Thursday in New Orleans.
Located in the oilier window of the play in Harrison County, Ohio,
Gulfport's first well will be one of 20 planned for this year at a total cost
of around $74 million, Moore said.
Unlike many other shale pioneers, Gulfport is an oil producer who picked
up 125,000 gross acres in Ohio, mostly targeting the Point Pleasant part of
the Utica, which is a deeper level of the shale.
"We like to try to be early to plays," Moore said. He said Gulfport's
acreage is in the "heart of the play" and his presentation showed planned
wells in the eastern Ohio counties of Harrison, Belmont and Guernsey
surrounded by wells of producers such as Chesapeake, Hess, XTO and Consol
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Moore said Gulfport has identified 781 Utica drill locations and plans
to construct "super" well pads with three or more wells per pad.
He said the Utica compares "favorably" with Texas' Eagle Ford Shale and
his company expects to spend $7.5 million per Utica well and recover 500,000
barrels of oil equivalent/well.
Gulfport enjoys being in a crowded neighborhood, Moore said. "We
leverage all the experiences of others."
Moore said Gulfport plans to drill in the oily Utica window and
eventually get well costs down to $6.5 million/well as they gain experience
in the Utica.
Moore was reserved when it came to announcing the results of that first
well. He said he was well aware the market likes data but called it
"dangerous" to announce the IP rate of one well. By the second quarter of
this year, he said, Gulfport will have two or three wells and a number of
days of production data, but may still announce something about the Utica in
Moore said he didn't expect any midstream infrastructure issues for
Gulfport in the Utica; enough midstream companies are building pipe fast
enough for takeaway capacity to be a nonissue for Gulfport.
Gulfport, with a $1.7 billion market capitalization, has conventional
wells in Louisiana that produced 2,111 boe/d, 97% oil, with low per-well
costs. The cash from these legacy plays is financing not only Gulfport's
Utica shale oil project, but projects as diverse as Canadian oil sands,
Permian Basin shale oil and offshore exploration in Thailand.
--Bill Holland, email@example.com