Utica Shale play emerging as important US liquids-rich resource

According to a recent report from IHS (NYSE: IHS), the leading global source of information and analytics, although it is still premature to conclude that the Utica/Point Pleasant Shale play in Ohio and western Pennsylvania will be as productive as the Eagle Ford Shale in Texas, the Utica is in many ways analogous to the Eagle Ford and early drilling results are encouraging. The similarities between the two plays include an extensive prospective area, vast resource potential, and three hydrocarbon-prone areas (oil, wet gas, and dry gas).

“To date, horizontal drilling results in the Utica have been very encouraging, with activity so far focused on targets within the wet gas window,” said Andrew Byrne, director of energy equity research at IHS, and author of the IHS Herold Utica/Pleasant Point Shale Regional Play Assessment. “Approximately two-thirds of the horizontal wells drilled on the play have reported 24-hour initial production (IP) rates of 1,000 barrels-of-oil-equivalent per day or more, which supports our opinion that early results are encouraging. However, the Utica is still in the very early stages of exploration—only in late 2010 did the industry start moving from drilling vertical exploratory wells in the play to permitting horizontal wells.”

Read the story in its entirety at IHS Report.