Halcon Sticking with Its Existing Utica Well Sites

YOUNGSTOWN, Ohio -- Halcon Resources Corp. hasn't altogether abandoned its holdings in the Utica shale, according to records from the Pennsylvania Department of Environmental Protection and the Ohio Department of Natural Resources.

Data provided by the Pennsylvania DEP show that Halcon was awarded a new permit June 20 to drill a new vertical well at the Gallagher property in Greene Township in Mercer County.

Meantime, ODNR issued a permit last week to Halcon so it can complete its Lutz 1H well in Trumbull County in Warren Township, according to the agency's website.

Earlier this year, the company said it would hold off future drilling in the Utica, especially the northern tier. Instead, the company has shifted its focus to other emerging shale plays across the country.

However, ODNR reports that the Lutz 1H well is in the process of being drilled. The company also continues to develop wells already drilled in Lordstown Township, especially the Kibler well, thus far the most productive well in the northern section of the Utica shale.

Hilcorp Energy Co. remains the most prolific driller in this part of the play, most notably in Lawrence and Mercer counties in Pennsylvania.

Last week the Pennsylvania DEP awarded Hilcorp a permit to drill a new horizontal well at the Burkhardt pad in Lawrence County, and another permit for a well in Shenango Township in Mercer County, records show.

Hilcorp has snagged 49 new well permits since March 10 – all in Mercer and Lawrence counties -- after it was forced to shut down a drilling operation in Poland Township across the state line in Ohio because the completion process was tied to a series of small earthquakes that rattled eastern Mahoning County.

Much of the drilling and permitting activity on the Ohio side of the Utica is further south, especially in counties such as Monroe, Guernsey, Noble and Harrison counties, according to ODNR.

The agency issued 32 permits for the week ended June 21. Just one well, Halcon's Lutz well, was permitted in the northern tier.

Chesapeake Energy Corp. was granted the largest number of well permits with 11, three in Carroll County and eight in Harrison County. Gulfport Energy secured 10 permits, six in Belmont and four in Monroe County.

Eclipse Resources LP was awarded three permits in Guernsey County, Antero Resources secured 4, one in Monroe County and three in Noble County, while HG Energy was awarded two permits for wells in Monroe County.

Since 2010, 1,264 wells have been permitted in Ohio's Utica shale. Of those permits, 925 are drilled and 470 wells are producing, ODNR reports.

Copyright 2014 The Business Journal, Youngstown, Ohio.
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