YOUNGSTOWN, Ohio -- Permits for new horizontal wells in eastern Ohio's Utica shale has slowed over the last two weeks, reflecting caution among energy companies wrestling with a market impacted by lower oil prices.
Eight permits were issued to companies for the week ended Jan. 24, according to the Ohio Department of Natural Resources, all of them in the southern tier of the Utica play.
Five permits were issued to Antero Resources for wells in Seneca Township in Monroe County, while three others were issued to American Energy Utica LLC for wells in Smithfield Township in Harrison County.
However, the rig count in the Utica rose to 48 from 43 a week earlier. To date, 1,781 permits for horizontal wells have been issued in eastern Ohio's Utica and 1,324 are drilled. Of that number, 726 are in production.
ODNR issued nine permits for the week ended Jan. 17, the agency reported, compared to 22 a week earlier. According to the Pennsylvania Department of Environmental Protection, there were no new permits issued to exploration companies in Lawrence or Mercer counties in western Pennsylvania, during the week.
The Ohio Department of Natural Resources issued nine new permits for horizontal wells during the week ended Jan. 17, the agency reports.
Chesapeake Exploration LLC, a subsidiary of Oklahoma City-based Chesapeake Energy Corp., received four new permits to drill wells in Carroll County at the Dean Ott farm in Washington Township.
American Energy Utica LLC, a division of American Energy Partners, a company established by former Chesapeake CEO Aubrey McClendon, was awarded two new permits for wells in Guernesy County. Exxon Mobil subsidiary XTO Energy received three permits to drill in Belmont County.
Much of the activity in Ohio is focused on the formation's southern tier in Belmont, Monroe, Noble and Harrison counties.
Drilling operations in the northern tier are limited, although 21 permits have been issued over the last three months to Houston-based Hilcorp Energy Co. for wells in northern Columbiana County, while Chesapeake operates several productive wells in the central and southern portion of the county.
Most of Hilcorp's drilling program in the northern Utica is concentrated in Lawrence and Mercer counties in western Pennsylvania. The company holds 119 horizontal well permits in Lawrence County and 56 permits in Mercer, according to the Pennsylvania Department of Environmental Protection.
Records show the latest permit awarded to Hilcorp was Jan. 16 for a new well in Lawrence County at the North Beaver Sportsman Club in North Beaver Township.
Copyright 2015 The Business Journal, Youngstown, Ohio.
CLICK HERE to subscribe to our twice-monthly print edition and to our free daily email headlines.