Krugliak, Wilkins, Griffiths & Dougherty Co., L.P.A. presents
Utica Journal Discoveries - An Electronic Oil and Gas Newsletter
With offices located in the heart of the Utica Shale play in
Canton, Akron, Alliance, Massillon, New Philadelphia & Sugarcreek, Ohio
KWGD - Matthew W. Onest, Esq.
On February 23, 2021, the Ohio House introduced House Bill No. 152 which would make several significant changes to Ohio’s unitization process, including requiring an unleased mineral owner to choose either a one-eight net royalty lease or be a carried interest that doesn’t get paid until operator has recovered 300% of its drilling and equipping costs. Failure to elect within 30 days of the Chief’s unitization order results in a lease at a 1/8th net royalty.
Natural Gas Intelligence
Way said the company moved a rig into Ohio and has since drilled its first dry gas Utica Shale well there. Southwestern plans to spend $850-925 million this year and intends to exit 4Q2021 producing about 3.05 Bcfe/d. Management said the company would bring 75-90 wells to sales, including up to 15 in the Ohio Utica’s dry gas window. Capital investment would be split evenly between Southwestern’s dry and liquids-rich acreage across Ohio, Pennsylvania and West Virginia.
The US oil and gas rig count leaped 30 in the week ending March 3 to 491, rig data provider Enverus said, reaching the highest total since late-April 2020, as WTI oil prices climbed near the mid-$60s/b amid buoyant outlooks at major energy conferences.
Hilcorp Energy Co. continues to advance its natural gas program in the northern tier of Ohio’s Utica-Point Pleasant shale formation, nearly 10 years after it drilled its first well in the region. The Ohio Department of Natural Resources reports that 12 new permits for horizontal wells were awarded to the company Feb. 25 for the Fairfield-Tarka well pad in Columbiana County’s Fairfield Township.
Shale Gas Reporter
Pennsylvania has reached a settlement with natural gas driller Chesapeake Energy Corp. over royalty payments to property owners, state Attorney General Josh Shapiro announced Monday, according to Independent Tribune. The agreement calls for $5.3 million in restitution and improved royalty payments, according to Shapiro. The lawsuit was filed against Chesapeake more than five years ago. Because Chesapeake filed for bankruptcy protection in Texas in June, the settlement will require a bankruptcy judge’s approval.