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7 Well Permits at Hilcorp's Carbon Limestone Site
YOUNGSTOWN, Ohio -- Hilcorp Energy Co. is planning to drill two more horizontal oil and gas wells at its Carbon Limestone Landfill site in Poland Township, records show.
The Ohio Department of Natural Resources issued two new permits July 2 for Hilcorp to drill at the site, located on land owned by Republic Services, which operates the landfill. Hilcorp has drilled one well at the site and has permits for six additional wells including the two issued July 2 by ODNR. The company is targeting the Utica/Point Pleasant shale formations in eastern Ohio.
Hilcorp and NiSource Transmission have partnered to form Pennant Midstream LLC, which is building a $300 million pipeline and processing system -- the Hickory Bend project -- that extends from western Pennsylvania, through southern Mahoning County, and into Columbiana County.
Pennant has begun construction on a $150 million processing plant along State Line Road in Springfield Township in Mahoning County, and Hilcorp is concentrated its drilling activity nearby in Poland Township, as well as in Lawrence and Mercer counties in western Pennsylvania.
The first phase of the Hickory Bend pipeline -- gathering lines extending from the Carbon Limestone site -- is finished, and tradesmen are working on a second phase that runs into Columbiana County.
Earlier this year, Chesapeake Energy assigned a substantial amount of leasehold acreage in northern Columbiana County to Hilcorp.
Hilcorp's new permits bring the total number of permits issued in Mahoning County since 2011 to 22, records show. Of that number, Chesapeake Energy Corp. has 11 and has drilled one; CNX Gas, a subsidiary of Consol Energy Co. has drilled all three of their permitted wells; Halcon Operating Co. has a single permit for Jackson Township; and Hilcorp has secured seven permits for the Poland site and has drilled one, according to ODNR's website.
Also last week, Chesapeake was awarded two new permits to drill in Columbiana County in Franklin Township on the Summitcrest property, ODNR reports, and on a site in Carroll County.
No new permits were issued for Trumbull County last week, according to ODNR.
The agency last week issued 20 new permits for Utica wells. As of July 6, 767 wells have been permitted in the Utica, 386 are drilled, and 109 are producing.
In addition to Hilcorp' and Chesapeake's new permits, Gulfport Energy Corp., which has found success in the southern portion of the Utica at several well sites, secured 10 new permits -- six in Belmont County and four in Harrison County. Eclipse Resources LP was awarded five new permits for its Herrick unit in Monroe County.
No new permits were issued last week for Mercer or Lawrence counties in western Pennsylvania, according to the Pennsylvania Department of Environmental Protection.
Copyright 2013 The Business Journal, Youngstown, Ohio.
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