Wednesday, November 05, 2014YOUNGSTOWN, Ohio -- Hilcorp Energy Co. has resumed permitting activity in the northern tier of the Utica shale in Ohio and western Pennsylvania, while other energy companies continue to focus on acreage in the southern section of the oil and gas play.
Hilcorp secured 11 new drilling permits in the northern Utica during the week ended Nov. 1, more than any other energy company exploring the play, according to records from state agencies that regulate the oil and gas industry.
The Ohio Department of Natural Resources reports Hilcorp received permits Oct. 30 to drill three new horizontal wells at its Salem-Grubbs pad in Salem Township in Columbiana County.
An existing well in operation at that pad produced 119.8 cubic feet of natural gas during the second quarter of 2014, according to ODNR's latest production records.
Hilcorp is a partner in the Hickory Bend system, a collection of pipelines and processors that stretch from Mercer County through Lawrence County in Pennsylvania, and enters Ohio through Mahoning County and into Columbiana County.
The system feeds Pennant Midstream's cryogenic plant in Springfield Township, which separates dry gas such as methane from the heavier liquid gasses.
Meanwhile, the company continues to develop its leasehold positions just across the state line in western Pennsylvania, according to the Pennsylvania Department of Environmental Protection.
The Pennsylvania DEP awarded Hilcorp eight permits Oct. 27 for new wells in Lawrence and Mercer counties, records show.
Four of these permits were issued for wells in Lawrence County. Two of the wells are slated for the Seigel farm and one for the Patton farm, both in Mahoning Township. A fourth well is planned for the North Beaver NC pad in North Beaver Township.
The DEP also reports Hilcorp received four permits for wells in Mercer County.
Two of the wells are targeted for the McCullough well pad in Mahoning Township, while two others are planned for the Patterson pad in Jackson Township.
No new permits issued for wells in Mahoning or Trumbull counties, ODNR records show, and Hilcorp's 11 new permits are the first awarded to the company since August.
ODNR issued 17 new permits during the week ended Nov. 1, records show.
In addition to the three Hilcorp wells, the agency reported that Hess Ohio Developments secured five new permits in Harrison County, Eclipse Resources I LP was awarded four new drilling permits in Guernsey County, and Chesapeake Exploration LLC secured three permits for wells in Jefferson, Tuscarawas and Carroll counties.
American Energy Utica, a division of American Energy Partners -- the company founded by former Chesapeake CEO Aubrey McClendon -- secured a single permit to drill in Harrison County, while Gulfport Energy Corp. was awarded a single permit for a well in Belmont County.
Since 2010, the ODNR has awarded 1,581 horizontal well permits to energy companies exploring Ohio's Utica shale. Since then, 1,148 wells have been drilled and 611 are now producing, ODNR reports.
Copyright 2014 The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our twice-monthly print edition and to our free daily email headlines.