The Ohio Oil & Gas Association The DeBrosse Memorial Report: 2012 Oil & Gas Activity in Ohio

66th Annual Winter Meeting March 7th, 2013 - Columbus, Ohio

Permits Issued By Month

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Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

CompletionPermitPlug

Permits 2010 – 2011 - 2012

TYPE 2010 2011 2012 ‘11–‘12 %

Completion 427 460 625 +165 +36%

Permit 651 690 1000 +310 +45%

Plug 740 571 619 +48 +8%

Total Permits 1512 1533 1619 +358 +23%

Completions / Permits / Plugs

Wells Drilled by Month

57

41 42

25

49

59 60 54

62 58

77

41

0

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30

40

50

60

70

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90

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

Owners Drilling Wells

YEAR OWNERS CHANGE % CHANGE

2010 126

2011 121 -5 -4%

2012 112 -9 -7%

Most Active Owners

Company Chesapeake Exploration 158 Oxford Oil 69 Knox Energy, Inc. 40 Enervest Operating, LLC 32 Northwood Energy Corp 18 Anadarko E & P Onshore 11 MFC Drilling, Inc. 11 PDC Energy 11

Company Chesapeake Exploration 1,609,781 Enervest Operating, LLC 184,008 Oxford Oil Co. 127,579 Knox Energy, Inc 97,331 Anadarko E & P Onshore 88,702 Antero Resources Appa. 77,289 CNX Gas Co 67,638 Hess Ohio 62,763

By Well: By Footage Drilled:

In 2011, the most active Owner drilled 37 wells

Wells Drilled by County

County Count Carroll 81 Noble 51 Licking 45 Stark 44 Knox 40 Columbiana 39 Monroe 37 Jefferson 27 Belmont 24 Guernsey 24

County Footage Carroll 989,218 Columbiana 285,976 Stark 253,905 Jefferson 245,109 Noble 232,019 Harrison 199,770 Monroe 155,525 Licking 130,731 Guernsey 117,871 Mahoning 110,843

By Well: By Footage Drilled:

Drilling Footage

Year Footage Change % 2010 1,718,768 2011 1,994,203 +275,435 +16% 2012 3,534,675 +1,540,472 +77%

625 wells, averaged 5,655’ DTD

54 strat tests were drilled (25 in 2011)

Permitted Formations

Clinton, 185, 18%

Ohio Shale, 57,

6%

Knox, 74, 7%

Berea, 55, 6%

Utica, 424, 42%

Trenton, 133, 13%

Other, 37, 4% Marcellus, 5, 1%

Oriskany, 30, 3%

Development vs. Exploratory

Exploratory 46% Development

54%

In 2011, 17% were Exploratory

Exploratory vs. Development Wells Drilled

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1400

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

WellsExploratory

Exploratory Wells

Utica – Point Pleasant and Marcellus Completions

County Drilling Depth Records - Vertical

County Company API DTD

Jefferson Chesapeake 34121243490000 10,260 Mahoning D&L Energy 34099231570000 10,088 Monroe Statoil 34111243050000 10,980 Trumbull D&L Energy 34155240430000 9,038

County Drilling Depth Records - Horizontal

Longest horizontals (DTD): BELMONT 14250 CARROLL 14800 COLUMBIANA 14844 GUERNSEY 11778 HARRISON 16439 JEFFERSON 16640 MAHONING 9958 MONROE 14686 MUSKINGUM 12871 NOBLE 14516 PORTAGE 14221 SANDUSKY 3526 STARK 13525 TUSCARAWAS 12342

Plugging 2002-2012

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Wells Drilled vs. Wells Plugged

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2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

PLUGDRILL

Completions / Permits / Plugs

Change of Owners

3956

3379

3568

4411

2412

7438

3054

3374

5908

4758

1134

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7000

8000

2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012

Production

Crude Oil

2010 4,784,690

2011 4,852,964

2012 ?

Natural Gas

2010 78,121,523

2011 73,289,838

2012 ?

Utica Well Status

Horizontal Well Development

Thank YOU!

Peter MacKenzie, CPG Vice President Operations Ohio Oil & Gas Association P.O. Box 535 Granville, OH 43023

o: 740.587.0444 c: 614.204.3534 pete@ooga.org www.ooga.org @ooga_hq /ooga.org