Monday, May 14, 2012

Dear Natural Gas Bulls: Chesapeake Is NOT Cutting Back on Drilling in the Utica Shale (CHK)

One of the reasons is the Utica has more natural gas liquids than the south-central plays (Eagle Ford, etc.).
However, unless the companies plan on flaring, the gas produced is going to come onto the market.
As Chesapeake desperately tries to raise the proportion of their income coming from oil and NGLs they are going to have about 6% more gas to sell in 2012 than in 2011.
The front futures are down 8.9 cents at $2.42.
From the Utica Shale blog:
Utica Shale Horizontal Permits Reach 194
The Ohio Department of Natural Resources has now issued 194 horizontal permits to drill into the Utica Shale formation in Ohio as of 4/5/2012. The dates, well names, operators and locations of the most recent 54 permits are:
4/5/2012 Belmont Hess   Porterfield Gas Unit C 1H-17
4/5/2012 Monroe HG Energy Whitacre Enterprises INC 701 S-5HA
4/5/2012 Monroe HG Energy Whitacre Enterprises INC 702 N-2H
4/5/2012 Monroe HG Energy Whitacre Enterprises INC 702 N-1H
4/5/2012 Monroe HG Energy Whitacre Enterprises INC 701 N-7H
4/5/2012 Monroe HG Energy Whitacre Enterprises INC 702 S-4H
4/5/2012 Monroe HG Energy Whitacre Enterprises INC 702 S-5H
4/5/2012 Monroe HG Energy Whitacre Enterprises INC 702 S-6H
4/4/2012 Carroll Chesapeake  Tuckosh 35-11-4 1H
4/3/2012 Carroll Chesapeake  Coe 34-12-4 5H
4/2/2012 Carroll Chesapeake  Wagner 11-13-5 5H
4/2/2012 Columbiana Chesapeake  Trebilcock South 25-15-4 8H
4/2/2012 Harrison Chesapeake  Rensi 4-12-6 1H
3/30/2012 Carroll Chesapeake  Slates 16-12-5 3H
3/30/2012 Carroll Chesapeake  Whitacre 26-17-7 8H
3/30/2012 Columbiana Chesapeake  Carney 17-7-1 3H
3/23/2012 Columbiana Chesapeake  Hanover Farms 34-15-4 3H
3/23/2012 Columbiana Chesapeake  Hanover Farms 34-15-4 6H
3/23/2012 Monroe HG Energy Whitacre Enterprises INC 701 N-3H
3/23/2012 Monroe HG Energy Whitacre Enterprises INC 701 N-1H
3/23/2012 Monroe HG Energy Whitacre Enterprises INC 702 N-3H
3/23/2012 Stark Enervest  Habrun 5H
3/21/2012 Belmont Hess  Capstone Holdings 2H-9
3/20/2012 Jefferson Chesapeake  Vahalik 18-11-4 10H
3/20/2012 Muskingum Enervest  Consolidated Coal Unit 2-H
3/19/2012 Carroll Chesapeake  Mangun 22-15-5 6H
3/19/2012 Carroll Chesapeake  P Brown 9-13-5 1H
3/19/2012 Columbiana Chesapeake  Morris 28-11-2 3H
3/19/2012 Columbiana Chesapeake  Kernich 3-10-2 1H
3/19/2012 Harrison Chesapeake  Henderson South 10-12-6 1H
3/19/2012 Harrison Chesapeake  Henderson South 10-12-6 5H
3/19/2012 Stark Chesapeake  Ronald Smith 3-17-6 3H
3/19/2012 Stark Chesapeake  Ronald Smith 3-17-6 1H
3/15/2012 Carroll Chesapeake  Tuckosh 35-11-4 1H
3/15/2012 Carroll Chesapeake  Burgett 7-15-6 10H
3/15/2012 Harrison Chesapeake  Buell 10-11-5 10H
3/15/2012 Harrison Chesapeake  Jewett Sportsmans Club 4-11-5 6H
3/15/2012 Harrison Chesapeake  Jewett Sportsmans Club 4-11-5 8H
3/15/2012 Jefferson Chesapeake  Kirk West 22-10-3 6H
3/15/2012 Jefferson Chesapeake  Cain 16-12-4 5H
3/12/2012 Carroll Chesapeake  Fligiel 29-12-5 8H
3/12/2012 Columbiana Chesapeake  Henderson 25-16-5 8H
3/8/2012 Carroll Chesapeake  P Brown 9-13-5 8H
3/7/2012 Carroll Chesapeake  Coe 34-12-4 3H
3/7/2012 Carroll Chesapeake  Tuckosh 36-11-4 3H
3/7/2012 Portage Chesapeake  Murvay Por 3H
3/6/2012 Columbiana Chesapeake  Janie Trust 5-12-3 10H
3/5/2012 Carroll R E Gas  Graham 1H
3/5/2012 Columbiana Chesapeake  Trebilcock 25-15-4 1H
3/2/2012 Carroll R E Gas  Brace 1H
2/29/2012 Carroll Chesapeake  Heaton 24-16-6 8H
2/28/2012 Harrison Gulfport Energy  Wagner Unit Wagner 1H
2/27/2012 Columbiana Chesapeake  Reed 28-11-2 8H
2/27/2012 Stark Chesapeake  Keller 21-19-6 5H