Activity in the Utica and Marcellus Shale formations in Ohio have seen some changes compared to last week’s well activity update, and so has one company’s plans in the Utica Shale formation.
Magnum Hunter Resources Corp. has decide to sell 5,210 acres of undeveloped land in the Utica Shale formation. The land, which is worth about $41 million, is located in Tyler County, West Virginia, and is part of the company’s plan to improve its liquidity. CEO Gary Evans explained that the acreage is not part of the company’s long-term drilling plan and that several of the leases are close to their expiration dates. Evans also said that because of these reasons it made sense for Magnum to sell the land to a competitor that already has adjacent leases.
Magnum’s plan to improve its liquidity consists of selling $450 million worth of land on Ohio. Currently, the company owns an estimated 21,000 acres in the Utica.
Last year, the company’s Stewart Winland pad in Tyler County recorded the highest numbers of natural gas production in the Utica. However, even with a record producing well, Magnum Hunter is still set on selling its land in Tyler County.
The following information is provided by the Ohio Department of Natural Resources and is through the week of May 23rd.
Activity in the Utica Shale formation in Ohio has had a few slight changes when compared to last week’s update. According to this week’s report, 423 wells were permitted, 382 drilled, 897 producing, 13 inactive, 24 in final restoration and 3 abandoned. This brings the total number of wells in the Utica to 1,917.
The Marcellus Shale in Ohio has zero change reported when compared to last week’s well report. The area is still sitting at 15 wells permitted, 13 drilled, 14 producing and one well inactive. There are a total of 43 wells in the Ohio Marcellus Shale.