YOUNGSTOWN, Ohio -- Hilcorp Energy Co. is accelerating its oil and gas development program in Ohio's northern Utica shale play, according to the latest horizontal well permits issued by the Ohio Department of Natural Resources.

ODNR awarded 12 permits Jan. 7 and Jan. 8 to Hilcorp for horizontal wells in Fairfield Township in Columbiana County..

Two years ago, Hilcorp acquired thousands of acres in and around the Brinker Storage Field in a lease assignment deal with Chesapeake Energy Corp., the first major energy company to explore the Utica in eastern Ohio.

The new permits show eight wells slated for the Nolker property and four others planned for a well pad at the Blocksom farm.

Most of the land Hilcorp acquired is situated in or around the Brinker Storage Field, a large repository of natural gas owned by Columbia Gas, a division of NiSource Transmission.

The new permits are in line with Hilcorp's aggressive presence in Poland Township at the state line, and in Mercer and Lawrence counties in Pennsylvania (See links below).

Four years ago, Hilcorp and NiSource established Pennant Midstream LLC to develop the Hickory Bend transmission and processing network, a 55-mile pipeline that runs from Mercer and Lawrence counties in western Pennsylvania, through portions of eastern Mahoning County in Ohio and into Columbiana County.

Pennant also operates the large cryogenic plant in Springfield Township. The plant accepts gas transported from the region's Utica wells and separates natural gas liquids from dry-gas methane. The liquid gas is then sent via pipeline to processing plants in southern Ohio where it is converted into products such as butane, propane and ethane.

ODNR last week also issued eight permits to Eclipse Resources LP -- four each in Noble and Guernsey counties in the southern tier of the Utica play, where most of the drilling activity is focused.

American Energy LP secured two permits for wells in Guernsey County and CNX Gas Co. was awarded two permits to drill wells in Noble County.

To date, ODNR has issued 1,766 horizontal permits and 1,300 of those wells have been drilled. There are 712 horizontal wells in production across the Utica in Ohio, according to ODNR.

ODNR issued  no new permits issued for wells in Mahoning or Trumbull counties last week.

And, the Pennsylvania Department of Environmental Protection issued no new permits were issued for Utica exploration in Lawrence or Mercer counties in the western part of the state.

RELATED:
Hilcorp Secures New Permits in Mercer County
Hilcorp Steps onthe Gas at Poland Township Wells
Hilcorp Is Digging Deeper into Columbiana County

Copyright 2014 by The Business Journal, Youngstown, Ohio.
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