Saturday, August 30, 2014YOUNGSTOWN, Ohio -- Hilcorp Energy Co. received 11 new permits to drill horizontal wells in Lawrence and Mercer counties in Pennsylvania over the last 12 days, as the company shores up its position in the northern tier of the Utica shale.
Meantime, Hilcorp says it will no longer seek a ruling from the Pa. Department of Environmental Protection that would force the pooling of land in Lawrence and Mercer counties, where three property owners have refused to lease their mineral rights. Administrative hearings were to be held in late October at the Lawrence County Government Center in New Castle, Pa. (READ STORY)
In a statement issued Friday, Hilcorp said it withdrew its DEP application "in order to move forward with development operations and in keeping with the best interests of the practice." Hilcorp was attempting to assemble a pool of 3,267 acres in Pulaski and Shenango townships, and the objecting landowners represent "approximately 1% of the acreage," the company said. "Oil and gas development and production will continue on our leased acreage in this area."
Hilcorp said its decision "is solely a business matter, not a legal one ... In Hilcorp’s opinion, this protracted process has created uncertainty for the landowners that have leased to Hilcorp and are eager to exercise their right to develop their oil and gas. While continuing to pursue legally prescribed integration is the correct legal option, the company decided it was time to move forward with drilling and development plans in order to provide the economic benefits to which the mineral owners in these units are entitled."
According to records from the Pennsylvania Department of Environmental Protection, Hilcorp most recently was awarded permits for six new horizontal wells in Lawrence County at the Mijavec farm in Pulaski Township. DEP also approved new permits allowing Hilcorp to drill two horizontal wells in Lackawonnock Township in Mercer County on the James farm, records show.
Hilcorp is the only active driller in the northern tier of the Utica shale. Most energy companies have abandoned this section of the play and are concentrating on drilling operations in southern Ohio counties such as Belmont, Noble, Harrison, Monroe and Jefferson.
The Ohio Department of Natural Resources issued 14 new permits for energy companies in the Utica for the week ended Aug. 23, records show.
Hess Ohio Developments LLC secured five permits for horizontal wells Kirkwood Township in Belmont County, according to ODNR. Chesapeake Exploration LLC, a subsidiary of Chesapeake Energy Corp., also received five new horizontal drilling permits – four in North Township, Harrison County, and one in Salem Township, Jefferson County.
ODNR also approved two permits for Enervest Operating to drill in Guernsey County, and two for Antero Resources to drill in Noble County.
Since 2010, ODNR has approved 1,457 horizontal well permits in the Utica. Of that number, 1,038 are drilled and 549 are listed as producing.
Copyright 2014 The Business Journal, Youngstown, Ohio.
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