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The Debrosse Memorial Report 2015 Oil & Gas Activity in Ohio
69th Annual Winter Meeting
Prepared by:Marty Shumway - Shumway Resources, LLCBill Arnholt - Northwood Energy CorporationTim Knobloch - James Knobloch Petroleum Consultants, Inc.
The Debrosse Memorial Report 2015 Oil & Gas Activity in Ohio - Outline
• General overview of Ohio oil & gas production
• Permits & completion summaries
• Operator activity (footage drilled, number of wells)
• Activity by county (footage drilled, number of wells)
• Change of owners
• IP analysis for horizontal wells
• Production summary
• Utica EUR summary
• Class II injection well summary
Oil & Gas Production in Ohio
• More than 275,000 oil and gas wells drilled in Ohio since 1860
• More than 50,000 producing wells in 49 of 88 Ohio counties
0
1000
2000
3000
4000
5000
6000
BEREA OHIO SHALE CLINTON TRENTON ROSE RUN CAMBRIAN
NW Ohio Lima-Indiana
Technologic Advance: Hydraulic FracturingClinton/Berea Plays
Morrow County Trempealeau Play
Clinton PlayTight Gas
Sands
Clinton Play
History of Ohio Wells Drilled by Year and Reservoir
Permits & Completions - 2010 - 2015
TYPE 2010 2011 2012 2013 2014 2015
▲
(’14 to’15) ▲%
PERMIT 651 690 903 1,608 1,659 997 -662 -40%
COMPLETION 427 460 553 580 654 534 -120 +18%
PLUG 740 571 473 630 629 511 -118 -19%
TOTAL 1,512 1,533 1,929 2,818 2,942 2,318 -624 -21%
Permit and Completions By Month
JAN FEB MAR APRIL MAY JUNE JULY AUG SEP OCT NOV DEC
84109 97
6785
6788
5688
120
68 68
23
5959
46
5656
55
34
23
24
4158
19
4553
32
44
40
40
5236
59
37
54
Permits Completions Plugging Permits
Operators Completing Wells By Year
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
116 127147
162182
143126 121 112 113
89 87
Wells Completed – Type534 Total Completions
Horizontal 373, 70%
Vertical 151, 28%
Directional4, 1%
Unknown6, 1%
Completions By Month
JAN FEB MAR APRIL MAY JUNE JULY AUG SEP OCT NOV DEC
21
4435
27
40 40 41
24
14 12
27
482
15
23
19
14 15 13
10
7 11
12
10
Horizontal Wells Vertical Wells
Completions – Top 10 CountiesCOUNTY TOTAL HORIZONTAL VERTICAL*
HARRISON 90 88 2
CARROLL 81 78 3
BELMONT 72 67 5
MONROE 53 44 9
GUERNSEY 49 46 3
NOBLE 42 30 12
COSHOCTON 17 0 17
STARK 16 4 12
KNOX 15 0 15
COLUMBIANA 14 12 2
OTHER COUNTIES 85 4 81
TOTAL 534 373 161
*INCLUDES “DIRECTIONAL” AND “UNKNOWN”
Top 12 Most Active Operators – By Wells
OPERATOR% TOTWELLS
2015 WELLS
▲%2014
CHESAPEAKE EXPLORATION LLC 27% 144 -33%
GULFPORT ENERGY CORPORATION 13% 71 92%
ANTERO RESOURCES CORPORATION 9% 49 172%
HESS OHIO DEVELOPMENTS LLC 5% 27 125%
ASCENT RESOURCES UTICA LLC 4% 22 N/A
RICE DRILLING D LLC 4% 19 1800%
ECLIPSE RESOURCES I LP 3% 18 13%
NORTHWOOD ENERGY CORP 2% 13 86%
ENERVEST OPERATING LLC 2% 10 -57%
ARTEX OIL COMPANY 2% 9 -10%
R E GAS DEVELOPMENT LLC 2% 9 -31%
MOUNTAINEER STATE OPER LLC 1% 7 N/A
TOP 12 OPERATORS DRILLED APPROXIMATELY 75% OF
TOTAL WELLS IN 2015
Top 12 Most Active Operators – By Footage
OPERATOR% TOTALFOOTAGE
2015FOOTAGE
▲%2014
CHESAPEAKE EXPLORATION LLC 34% 2,260,537 -25%
GULFPORT ENERGY CORPORATION 18% 1,155,182 94%
ANTERO RESOURCES CORPORATION 12% 817,867 184%
HESS OHIO DEVELOPMENTS LLC 7% 465,549 N/A
ASCENT RESOURCES UTICA LLC 5% 332,505 N/A
ECLIPSE RESOURCES I LP 4% 280,029 18%
RICE DRILLING D LLC 4% 272,759 12,730%
R E GAS DEVELOPMENT LLC 2% 122,452 -27%
XTO ENERGY INC. 2% 100,681 237%
PDC ENERGY INC 1% 81,905 25%
ENERVEST OPERATING LLC 1% 67,045 -39%
CARRIZO (UTICA) LLC 1% 54,324 N/A
TOP 12 OPERATORS DRILLED APPROXIMATELY 91% OF
TOTAL FOOTAGE DRILLED IN 2015
Top 12 Most Active Counties – By Wells
COUNTY% TOTWELLS
2015WELLS
▲%2014
HARRISON 19% 90 53%
CARROLL 17% 81 -51%
BELMONT 15% 72 148%
MONROE 11% 53 89%
GUERNSEY 10% 49 53%
NOBLE 9% 42 24%
COSHOCTON 4% 17 31%
STARK 3% 16 -47%
KNOX 3% 15 -12%
COLUMBIANA 3% 14 -50%
WASHINGTON 3% 12 140%
LICKING 2% 10 -33%
OPERATORS REPORTED COMPLETIONS IN 34 OF 89 COUNTIES IN 2015 VERSUS 38 IN 2014. TOP 12 COUNTIES – 88% TOTAL WELLS
Top 12 Most Active Counties – By Footage
COUNTY% TOT
FOOTAGE2015
FOOTAGE▲%2014
HARRISON 23% 1,453,425 71%
CARROLL 20% 1,259,238 -46%
BELMONT 18% 1,128,899 154%
MONROE 12% 764,084 134%
GUERNSEY 11% 701,273 114%
NOBLE 9% 560,308 73%
COLUMBIANA 3% 206,727 -40%
STARK 2% 102,382 -27%
WASHINGTON 1% 71,792 69%
COSHOCTON 1% 48,509 2%
KNOX 1% 39,790 -24%
TUSCARAWAS 0% 30,316 145%
TOP 12 COUNTIES ACCOUNTED FOR 97% OF TOTAL FOOTAGE DRILLED IN 2015
Drilling Footage and Wells – By Year
YEARTOTAL
FOOTAGE WELLSFOOTAGEPER WELL
AVG IP GAS
AVG IP OIL
2015 6,587,714 534 12,336 5,432 279
2014 5,854,693 654 10,398 2,703 122
2013 3,898,408 569 7,570 1,361 97
2012 2,580,821 511 5,388 481 34
2011 1,832,121 454 4,192 136 7
2010 2,224,761 633 3,883 50 3
2009 3,036,431 927 3,767 223 2
2008 4,249,247 1149 3,750 54 3
2007 4,030,319 1094 3,928 70 3
2006 3,601,375 945 3,927 79 4
2005 2,718,759 673 4,095 123 4
2004 2,324,308 589 4,107 133 4
2003 2,419,254 561 4,359 88 5
2002 2,780,935 643 4,507 91 4
2001 3,332,804 766 4,374 152 3
2014 TO 2015 AVG IP-GAS UP 101%; AVG IP-OIL UP 129%2014 TO 2015 FOOTAGE PER WELL UP 19%
Change of Owner – Wells By Year
0
1000
2000
3000
4000
5000
6000
7000
8000
2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
39563379
3568
4411
2412
7438
3054
2274
5908
4758
11341696
31423603
YEAR 2015 LARGEST CHANGE OF WELL OWNER WAS BROAD STREET ENERGY CO & BROAD STREET SERV LLC TO M&R INVESTMENTS OHIO LLC
Top 12 Counties – By Average IP (MCFE)
COUNTY WELLSAVG IP GAS
(MCF)AVG IP OIL
(BBLS)AVG IP (MCFE)
BELMONT 64 10,150 239 13,735
MONROE 45 12,549 33 13,044
HARRISON 82 5,915 404 11,975
GUERNSEY 43 2,778 577 11,433
CARROLL 77 3,877 373 9,472
NOBLE 39 4,180 275 8,305
COLUMBIANA 13 5,961 140 8,061
WASHINGTON 7 1,216 80 2,416
STARK 15 31 15 256
KNOX 9 40 8 160
GEAUGA 4 23 3 68
COSHOCTON 12 14 2 44
COUNTIES WITH LESS THAN 4 WELLS ARE NOT INCLUDEDMCFE CALCULATED USING OIL GAS RATIO OF 15:1
Top 12 Operators – By Average IP (MCFE)
OPERATOR WELLS
AVG IP GAS
(MCF)
AVG IP OIL
(BBLS)AVG IP (MCFE)
ASCENT RESOURCES UTICA LLC 20 5,349 909 18,984
HESS OHIO DEVELOPMENTS LLC 26 12,669 335 17,694
ANTERO RESOURCES CORPORATION 45 8,691 272 12,771
R E GAS DEVELOPMENT LLC 9 4,277 534 12,287
GULFPORT ENERGY CORPORATION 71 8,816 175 11,441
CHESAPEAKE EXPLORATION LLC 135 4,209 375 9,834
ECLIPSE RESOURCES I LP 15 3,610 302 8,140
XTO ENERGY INC. 6 8,123 0 8,123
RICE DRILLING D LLC 13 6,099 0 6,099
PDC ENERGY INC 6 700 308 5,320
ENERVEST OPERATING LLC 9 37 24 397
NORTHWOOD ENERGY CORP 13 158 2 188
OPERATORS WITH LESS THAN 4 WELLS ARE NOT INCLUDED. MCFE CALCULATED USING OIL GAS RATIO OF 15:1
Top 12 Operators – By Average IP (MCFE)
0
4
8
12
16
20 19
.0
17
.7
12
.8
12
.3
11
.4
9.8
8.1 8.1
6.1
5.3
0.4
0.2
Ave
rage
IP (
MC
FE) Th
ou
san
ds
OPERATORS WITH LESS THAN 4 WELLS ARE NOT INCLUDED. MCFE CALCULATED USING OIL GAS RATIO OF 15:1
IP-OIL Versus Production
42 WELL DATA SET, 2015 PRODUCTION & IP DATA
R² = 0.8215
0
10
20
30
40
50
60
70
80
90
0 100 200 300 400 500 600 700 800 900
20
15
PR
OD
UC
TIO
N -
QU
AR
TER
3 &
4 -
MB
BLS
OPERATOR REPORTED IP – OIL (BBLS/day)
IP-GAS Versus Production
68 WELL DATA SET, 2015 PRODUCTION & IP DATA
R² = 0.5825
0.0
0.2
0.4
0.6
0.8
1.0
1.2
1.4
1.6
1.8
2.0
0 2000 4000 6000 8000 10000 12000 14000 16000
20
15
PR
OD
UC
TIO
N -
QU
AR
TER
3 &
4 -
BC
F
OPERATOR REPORTED IP – GAS (MCF/day)
Producing Wells – By Year
0
10000
20000
30000
40000
50000
60000
1984 1989 1994 1999 2004 2009 2014
CO
UN
T O
F W
ELLS
YEAR
Producing Wells (ODNR) Reported Production
YEAR 2015 WELL COUNT IS ESTIMATED
Production Summary – Oil By Year8
.1
7.3
7.1
7.1
7.0
6.6 6.8
6.7
5.9
5.4 5.7 6.3
5.6
5.2
5.0
5.0
5.0 5.0 5.1
4.4 4.8
4.6
4.5
4.3
3.9
3.7
0.6 3
.7
11
.0
21
.9
0
5
10
15
20
25
30
19
90
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Mill
ion
Bar
rels
of
Oil
Conventional Oil Horizontal Oil
YEAR 2015 CONVENTIONAL PRODUCTION IS ESTIMATED BY USING AVERAGE ANNUAL PERCENT DECLINE FOR YEAR 2012-2014.
2015 PRODUCTION IS APPROXIMATELY
5.6 TIMES 2011 PRODUCTION
2015 OIL PRODUCTION REPORTED BY1,074 HORIZONTAL WELLS
23,900 VERTICAL WELLS (EST)
Production Summary – Gas By Year1
21
10
4
11
3
11
8
11
5
10
6
11
1
10
6
10
8
90 92
89
88
85
83
77 79
76 82
76 80
80
73
66
59
53
13
10
0
45
2
95
4
0
200
400
600
800
1000
12001
99
0
19
91
19
92
19
93
19
94
19
95
19
96
19
97
19
98
19
99
20
00
20
01
20
02
20
03
20
04
20
05
20
06
20
07
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
Bill
ion
Cu
bic
Fe
et o
f G
as
Conventional Gas Horizontal Gas
YEAR 2015 CONVENTIONAL PRODUCTION IS ESTIMATED BY USING AVERAGE ANNUAL PERCENT DECLINE YEAR 2012-2014.
2015 PRODUCTION IS APPROXIMATELY
12.6 TIMES 2011 PRODUCTION
2015 GAS PRODUCTION REPORTED BY1240 HORIZONTAL WELLS
37,000 VERTICAL WELLS (EST)
Ohio Oil Production 1886-2015
HISTORICAL DATA COURTESY OF WICKSTROM GEOSCIENCE, LLC
0
5
10
15
20
25
30
1881 1891 1901 1911 1921 1931 1941 1951 1961 1971 1981 1991 2001 2011
MIL
LIO
NS
OF
BA
RR
ELS
OF
OIL
YEAR
189623.9 MMBLS
TRENTON
19453.0 MMBLS
EOR
196415.9 MMBLS
TREMPEALEAU
198415.3 MMBLS
CLINTON
20104.7 MMBLS
2015
25.6 MMBLS
UTICA
1952HYDRAULIC
FRACTURING
Ohio’s Aging Wells
0
1000
2000
3000
4000
1
10
100
1000
10000
100000
0 5 10 15 20 25 30 35 40 45 50
CO
UN
T O
F W
ELL
OIL
(B
BLS
) /
GA
S (M
CF)
WELL AGE - YEARS
Average Annual Oil Average Annual Gas Count of Wells
54% OF ~53,000
PRODUCING WELLS ARE BETWEEN
25 & 39 YEARS OLD
Utica – Gas Production By Quarter
1st Qtr2013
2nd Qtr2013
3rd Qtr2013
4th Qtr2013
1st Qtr2014
2nd Qtr2014
3rd Qtr2014
4th Qtr2014
1st Qtr2015
2nd Qtr2015
3rd Qtr2015
4th Qtr2015
Gas 8.30 15.07 33.51 43.06 67.28 88.62 131.98 164.78 183.59 221.86 245.83 301.96
8 1534
43
67
89
132
165
184
222
246
302
0
50
100
150
200
250
300
350
Gas
in B
CF
25%
48%
33%
56%
12%
21%
11%
23%
SHARP QUARTERLY
INCREASE IN GAS PRODUCTION BEGINNING
4TH QTR 2015(INCREASED
ACTIVITY IN DRY GAS REGION)
19%
Utica – Oil Production By Quarter
1st Qtr2013
2nd Qtr2013
3rd Qtr2013
4th Qtr2013
1st Qtr2014
2nd Qtr2014
3rd Qtr2014
4th Qtr2014
1st Qtr2015
2nd Qtr2015
3rd Qtr2015
4th Qtr2015
Oil 0.33 0.57 1.31 1.43 1.94 2.46 3.01 3.55 4.43 5.58 5.71 6.22
0.330.57
1.31 1.43
1.94
2.46
3.01
3.55
4.43
5.585.71
6.22
0
1
2
3
4
5
6
7
Oil
in M
illio
ns
of
Bb
ls
18%
22%
27%
36%
25%
26%
2%9%
FLATTENING QUARTERLY
INCREASE IN OIL PRODUCTION
BEGINNING IN 2ND
QTR 2015
9%
Utica – Wells Online By Quarter
1st Qtr2013
2nd Qtr2013
3rd Qtr2013
4th Qtr2013
1st Qtr2014
2nd Qtr2014
3rd Qtr2014
4th Qtr2014
1st Qtr2015
2nd Qtr2015
3rd Qtr2015
4th Qtr2015
Wells 92 152 243 349 417 503 673 778 877 978 1093 1221
92152
243
349
417
503
673
778
877
978
1093
1221
0
200
400
600
800
1000
1200
1400
We
lls O
nlin
e
16%
34%
21%
19%
13%
12%
12%
12%
INCREASE IN WELLS ONLINE
CONSISTENT BEGINNING IN 1ST
QTR 2015
Utica EUR Estimation
• Used operator reported production to ODNR through 3rd Qtr 2015
• Calculated EUR values for each well
• Adjusted EUR to gas equivalents (BCFE)• used GAS/OIL ratio of 15:1 (based on current market prices)
• Determined treated length (stimulated interval) and then calculated EUR per 1000’ of lateral
UTICAESTIMATED
AVERAGE EUR PER 1000’ BY TOWNSHIP
USING GAS:OIL RATIO
OF 15:1(Count of data
points per township posted)
1 2 3 4 5
Bbls of Water 12,759,681 14,630,076 17,420,798 21,700,838 23,411,745
0
5,000,000
10,000,000
15,000,000
20,000,000
25,000,000
Wat
er
Vo
lum
eIn
ject
ed
(B
bls
)
2014
2013
2012
2011
16 % Increase
13% Increase
25% Increase
2015
8% Increase
141 WELLS REPORTED INJECTION VOLUMES
IN 2015
Annual Injection Volume - Statewide
Top 10 Class II Injection Wells – By Volume COUNTY & TWP OPERATOR LEASE NAME 2015
TUSCARAWAS - OXFORD ELKHEAD GAS & OIL CO. MOZENA #1 2,151,488
COSHOCTON - KEENE BUCKEYE BRINE LLC ADAMS #3 1,940,139
MUSKINGUM - UNION HECKMAN WATER RES GOFF SWD #1 1,403,135
COSHOCTON - KEENE BUCKEYE BRINE LLC ADAMS #2 1,332,557
ATHENS - TROY K & H PARTNERS LLC K & H PARTNERS #2 1,327,271
ATHENS - TROY K & H PARTNERS LLC K & H PARTNERS #1 1,292,670
MUSKINGUM - PERRY ROBERT W. ORR, JR. KEMBLE #1-D 965,518
ATHENS - ROME D.T. ATHA, INC. M. FROST #1 586,602
ASHTABULA - NEW LYME SHALELOGIX RHOA #3 469,468
COSHOCTON - KEENE BUCKEYE BRINE LLC ADAMS #1 462,344
TOTALS 11,931,192
THE TOP 10 WELLS, OUT OF 141 TOTAL WELLS
ACCOUNTED FOR 51% OF TOTAL WATER INJECTED
2015Top 10 Counties -Water Injection
As of 3-8-2016
County Volume (BBls)
ATHENS 3,831,788
COSHOCTON 3,772,344
MUSKINGUM 2,778,806
TUSCARAWAS 2,405,611
PORTAGE 1,995,995
TRUMBULL 1,686,367
WASHINGTON 1,589,079
ASHTABULA 1,146,171
GUERNSEY 585,942
PICKAWAY 492,947
TOTAL 20,285,050
TOP 10 COUNTIES ACCOUNT FOR 87% OF TOTAL WATER INJECTED
THANK YOU!Marty Shumway
(614) 846-1391
Special Thanks To:
Ohio Oil and Gas Association
Bill Arnholt, Northwood Energy
Tim Knobloch, James Knobloch Petroleum Consultants, Inc.
Larry Wickstrom, Wickstrom Geoscience, LLC