## PENNSTAT E**~** 

### Cooperat ive Exten s ion • Ccll<ge of AJ!rk•lt•rol Sd-J



# Shale Webinar Series The Utica Reservoir Mike Arthur, Penn State, Professor of Geosciences and Co-director, Marcellus Center for Outreach and Research 

# April 24 , 2013 , 2:30- 3:30 PM Penn State Extension Marcellus Education Team

# Today's Webinar •Offered as part of our Shale Webinar series , by the Penn State Extension Marcellus Education Team •Use the chat box in the bottom right hand corner to introduce yourself and for technical problems. Use the Q 

## & A box during the webinar for questions for the presenters. •Webinar will be recorded and the presentation will be made available later this week on the Natural Gas website ( www . extension . psu .e du/naturalgas ) •Problems? E - mail Matt at mxh454@ps u. ed u or call at 570-244-1128

# Shale Webinar Series
• April 24 The Utica Reservoir , Mike Arthur, Co-Director, Penn State Marcellus Out reach and Research ( Wednesday, 2:30 to 3:30PM ) • April 25 Information on Potential Loyalsock State Forest Natural Gas Development , Arianne Proctor, DCNR Marcellus Program Manager Secretary Richard Allan, DCN R, Dan Devlin, DCNR Sta te Forester (https : ljmeet ing . p su . e d u/ma r ce ll u swebinar/ 

### l • May 16 Shale Energy Development's Effect on the Posting, Bonding and Maintenance of Roads in Rural PA , Mark 

## E. Gaines , PennDOT and Tim Ziegler , Center for Dirt and Gravel Road Studies • June 20 Royalty Calculations for Natural Gas from Shale , Jim Ladlee , Associate Director, Penn State Marcellus Center for Outreach and Research (MCOR)

## North American Shale Gas Plays

• Sh>le GiK Boslhs 

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**~,...** Developing: Bamen , Fayetteville, Haynesville. W oo dford , Mar ce llus , and H orn River Evaluating: Barnett!Woodford. Utica , and Gothic New S hale Plays. Growth in Medium 10 Long Term

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efl ection Subsurface pro c ess Diagenesis 

## 0.5 -'-----1 Katagenes i s 

## 5 50°C 2.0 -'-----1 Metagenesis

### Hydrocarbon Molecules Methane ( CH 4 ) Boiling point : - 164 •( (-263'Fl
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than e (C 2 H 6) Boili ng po i nt : - s9•c (-128 .F)
Pro p ane (C 3 H 8 ) Boiling point: -42 '( {-44•f)
But a n e (C 4 H 10 ) Boiling point: 

### o·c (32.F) 

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# - Pricing History, Oil Natural Gas and Propane These commodity prices are driving drilling and production

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# so 360 110 TOTAL 

# 610 6 , 360**669**

# Utica-Pt Pleasant Summary • The Ordovician age Utica Shale and Point Pleasant Formation is believed to be the source rock for over 300 million barrels of oil and 3 trillion cubic feet of gas reserves from overlying Silurian age Clinton sandstones and deeper Cambrian-Ordovician age Knox carbonates and



# dstones in Eastern Ohio. • In Western Pennsylvania and

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## Oh i o, the Utica Shale is over 150 feet thick and the

**unde~IY.ing Roint**  

## Pleasant Formation is 140 feet thick . • Mixed carbonate/shale sequence, containing total organic carbon content ranging from 2.4% to 3.7%. Not rich compared to Marcellus Shale, but effective due to the very thick section of potential source rock. • The Point Pleasant exhibits high resistivities on geophysical 

## logs, indicating the section is hydrocarbon bearing. Log analysis indicates that porosities in the Point Pleasant Formation range 8% to 12%.

# How Much Can Be Recovered from Utica Interval in Ohio? • Over 10.9 million Ac in Ohio play • Avg. thickness 250ft (Utica-Point Pleasant) • Avg. TOC is 1.35% (max ' . ,. is higher) • Avg. potential yield 

# ] OO BOE/ Ac-ft/%TOC • Total potential ca. 375 x 10 9 

# BOE in Ohio • What is Recovery Efficiency? • Wickstrom (2011) used 1.2 to 5%

- So here 4.5 to 18.8 x 10 9 

# BOE -Wickstrom (2011) estimated 1.96 to 8 . 2 x 109 

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# - - - Developmen t of the Utica 

# in Ohio As of 4/ 20 / 13 

### 616 wells permitted 305 wells drilled 

### 81 wells producing



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### Sourc e : 

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# - - http :// oilandgas . ohiodnr.gov / industry / shal e-well-drilling#SHAL E

# What's Up with the Utica in Ohio? • Some large leaseholders are selling all or part ' of their acreage!

• Oil, in particular, is more difficult to produce and may require purng Jist.

- Chesapeake

**{94,000 ~<1** 

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# L n Stark and Portage Co.,

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# out of 1.2 million Ac holdings) -Devon {244,000 Ac for sale, selling all holdings)

- Enervest {103,800 Ac for sale) On the other hand, some smaller companies see promise and are buying acreage (e.g., Gulfport Energy Corp., PDC Energy, Inc.)