43
The Debrosse Memorial Report 2018 Oil & Gas Activity in Ohio 72 nd Annual Winter Meeting Prepared by: Marty Shumway – Locus Bio-Energy Solutions LLC
The Debrosse Memorial Report 2018 Oil & Gas Activity in Ohio
72nd Annual Winter Meeting
Prepared by:Marty Shumway – Locus Bio-Energy Solutions LLC
The Debrosse Memorial Report 2018 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)
• IP analysis
• Change of owners
• Production 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
2018 Permit & Completion Activity
PHOTOGRAPHS COURTESY OF LARRY WICKSTROM
Permits & Completions - 2013 - 2018
TYPE 2013 2014 2015 2016 2017 2018
▲
(’17 to’18)
▲%
PERMIT 1,608 1,659 997 561 931 493 -370 -47%
COMPLETION 580 654 534 620 449 408 -41 -9%
PLUG 630 629 511 439 413 441 28 7%
TOTAL 2,818 2,942 2,318 1,113 1,793 1,342 -680 -25%
2018 Completions – OutcomesWELL STATUS COUNT % OF TOTAL
PRODUCING 336 82.4%
NOT DRILLED 36 8.8%
WELL DRILLED 9 2.2%
PLUGGED AND ABANDONED 8 2.0%
FINAL RESTORATION 6 1.5%
PLUGGED BACK 4 1.0%
STORAGE WELL 2 0.5%
LOST HOLE 2 0.5%
ACTIVE INJECTION 2 0.5%
SHUT IN 1 0.2%
DRILLING 1 0.2%
CANCELLED 1 0.2%
TOTAL 408 100%
2018 Permitted Formations
0
50
100
150
200
250
300
350335
6028
18 15 9 7 7 5 4 2 2 1
493 PERMITS ISSUED
50% LESS UTICA PERMITS
67% MORE CLINTON PERMITS
2018
CompletionsPermits to DrillPermits to Plug
2018 Permit and Completions By Month
JAN FEB MAR APRIL MAY JUNE JULY AUG SEP OCT NOV DEC
75 7158
2236
20 3052
31 27 37 34
81
25 40
1516
13
38
33
27 42 2417
38
48 43
29
40
35
27
87
1824
2725
Permits Completions Plugging Permits
DOES NOT INCLUDE 37 COMPLETIONS WITH “NOT DRILLED” OR “CANCELLED” STATUS.
493 DRILLING PERMITS ISSUED371 COMPLETIONS FILED
441 PLUGGING PERMITS ISSUED
Operators Completing Wells By Year
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
116 127147
162182
143126 121 112 113
89 8771
45 38
DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED” OR “CANCELLED” STATUS.
2018 Wells Completed – Type371 Total Completions
Horizontal 333, 90%
Vertical 35, 9%
Directional2, 1%
Unknown1, 0%
DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED” OR “CANCELLED” STATUS.
2017HORIZONTAL – 317
VERTICAL – 35DIRECTIONAL – 2
UNKNOWN - 1
2018Horizontal
Completions By Deepest
Formation
COLUMBIA GAS TRANSMISSION STORAGE FIELD IN ASHLAND/RICHLAND COUNTIES
2018
Vertical Completions
Deepest Formation
INCLUDE 2 DIRECTIONAL & 1 UNKNOWN ORIENTATION
2018 Completions By Month
JAN FEB MAR APRIL MAY JUNE JULY AUG SEP OCT NOV DEC
76
2236
10 13 12
3629 26
42
18 15
5
3
4
5 3 1
24
1
0
62
Horizontal Vertical
VERTICAL COUNT INCLUDES “DIRECTIONAL” AND “UNKNOWN”DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED”OR “CANCELLED” STATUS.
2018 Completions – Top 10 CountiesCOUNTY TOTAL % TOT HORIZONTAL VERTICAL
BELMONT 98 26% 97 1
MONROE 95 26% 94 1
JEFFERSON 42 11% 42 0
HARRISON 30 8% 30 0
GUERNSEY 29 8% 28 1
NOBLE 21 6% 20 1
CARROLL 12 3% 11 1
WASHINGTON 6 2% 3 3
ASHLAND 6 2% 3 3
COLUMBIANA 5 1% 4 1
OTHER 27 7% 1 26
TOTAL 371 100% 333 38
VERTICAL COUNT INCLUDES “DIRECTIONAL” AND “UNKNOWN”.DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED” OR “CANCELLED” STATUS. TOP 3 COUNTIES INCLUDE 63% OF COMPLETIONS.
97 94
4230 28
20 114 1
1 1
0
0 11
13 3 1
26
HORIZONTAL VERTICAL
2018 Completions By County
VERTICAL COUNT INCLUDES “DIRECTIONAL” AND “UNKNOWN”.DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED” OR
“CANCELLED” STATUS. TOP 3 COUNTIES INCLUDE 63% OF COMPLETIONS.
Hess Ohio – CNXGUE10N7W #H-8
PHOTOGRAPH COURTESY OF LARRY WICKSTROM
OPERATOR% TOTWELLS
2018 WELLS
▲%2017
ASCENT RESOURCES UTICA LLC 19% 70 -11%
GULFPORT ENERGY CORPORATION 12% 45 -4%
ANTERO RESOURCES CORPORATION 11% 39 77%
RICE DRILLING D LLC 10% 36 -14%
CHESAPEAKE EXPLORATION LLC 9% 35 -40%
ECLIPSE RESOURCES I LP 9% 32 23%
CNX GAS COMPANY LLC 6% 24 118%
GULFPORT APPALACHIA LLC 4% 14 -70%
EAP OHIO LLC 2% 9 N/A
EQUINOR USA ONSHORE PROPERTIES 2% 9 N/A
COLUMBIA GAS TRANSMISSION LLC 2% 6 500%
TRIAD HUNTER LLC 2% 6 N/A
Top 12 Most Active Operators – By Wells
DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED” OR
“CANCELLED” STATUS. TOP 12 OPERATORS COMPLETED 88% OF TOTAL.
OPERATOR% TOTALFOOTAGE
2018FOOTAGE
▲%2017
ASCENT RESOURCES UTICA LLC 20% 1,298,200 -8%
RICE DRILLING D LLC 12% 775,323 0%
GULFPORT ENERGY CORPORATION 12% 764,456 -11%
ECLIPSE RESOURCES I LP 12% 755,546 53%
ANTERO RESOURCES CORPORATION 11% 716,216 82%
CHESAPEAKE EXPLORATION LLC 10% 644,424 -35%
CNX GAS COMPANY LLC 7% 480,746 114%
GULFPORT APPALACHIA LLC 4% 242,421 1190%
EAP OHIO LLC 3% 189,044 N/A
EQUINOR USA ONSHORE PROPERTIES 3% 186,978 N/A
TRIAD HUNTER LLC 1% 97,681 N/A
EM ENERGY OHIO LLC 1% 83,518 N/A
TOTALS 96% 6,234,553 8%
Top 12 Most Active Operators – By Footage
DOES NOT INCLUDE COMPLETIONS WITH “NOT DRILLED” OR
“CANCELLED” STATUS. TOP 12 OPERATORS COMPLETED 96% OF TOTAL.
Top 12 Most Active Counties – By Wells
COUNTY% TOTWELLS
2018WELLS
▲%2017
BELMONT 26% 98 -21%
MONROE 26% 95 98%
JEFFERSON 11% 42 -2%
HARRISON 8% 30 -21%
GUERNSEY 8% 29 12%
NOBLE 6% 21 -16%
CARROLL 3% 12 -48%
WASHINGTON 2% 6 N/A
ASHLAND 2% 6 200%
COLUMBIANA 1% 5 -17%
COSHOCTON 1% 3 -57%
HURON 1% 3 50%
OPERATORS REPORTED COMPLETIONS IN 27 OF 88 COUNTIES IN 2018
VERSUS 27 IN 2016. TOP 12 COUNTIES 94% TOTAL WELLS
Top 12 Most Active Counties – By Footage
COUNTY% TOT
FOOTAGE2018
FOOTAGE▲%2017
BELMONT 29% 1,859,555 -20%
MONROE 28% 1,837,472 96%
JEFFERSON 13% 852,296 8%
HARRISON 9% 594,692 9%
GUERNSEY 9% 588,656 45%
NOBLE 6% 384,932 -12%
CARROLL 2% 150,015 -59%
COLUMBIANA 1% 66,182 -31%
WASHINGTON 1% 55,755 N/A
ASHLAND 0.4% 28,348 160%
RICHLAND 0.2% 15,931 N/A
HOLMES 0.2% 12,948 41%
TOP 12 COUNTIES ACCOUNTED FOR 99% OF TOTAL FOOTAGE DRILLED
IN 2017.
Drilling Footage and Wells – By Year
YEARTOTAL
FOOTAGE WELLSFOOTAGEPER WELL
AVG IP GAS
AVG IP OIL
2018 6,518,846 371 17,571 13,734 119
2017 6,033,677 378 16,263 9,245 245
2016 7,955,832 594 14,206 6,095 196
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
2017 TO 2018 AVG IP-GAS UP 49%; AVG IP-OIL DOWN 51%2017 TO 2018 AVG FOOTAGE PER WELL UP 8%
Top 12 Owner Change – By WellsFROM TO WELLS
NGO DEVELOPMENT CORP. M & R INVESTMENTS OHIO LLC 477
VIRCO INC TRIAD HUNTER LLC 134
BELVOIR ENERGY INC. C & D OIL & GAS LLC 109
C & C PRODUCING LLC MS PRODUCING LLC 95
AUTUMN RIDGE ENTERPRISES LLC STMX GAS INC 94
GONZOIL INC PIN OAK ENERGY PARTNERS LLC 74
BANCEQUITY PETROLEUM CORP GENESIS RESOURCES LLC 68
HESS OHIO DEVELOPMENTS LLC ASCENT RESOURCES UTICA LLC 66
RIDGWAY RLTY & LAND INC C & D OIL & GAS LLC 53
KENOIL LLC GENESIS RESOURCES LLC 50
KENOIL LLC CAPSTONE OIL PRODUCING LLC 50
JAMES R SMAIL INC PIN OAK ENERGY PARTNERS LLC 46
TOP 12 OWNER CHANGES ACCOUNTED FOR 44% OF TOTAL OWNER
CHANGES IN 2018.
Change of Owner – Wells By Year
0
1000
2000
3000
4000
5000
6000
7000
8000
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
3568
4411
2412
7438
3054
2274
5908
4758
11341696
31423603
1694
6974
2965
M&R INVESTMENTS, ONE LARGE TRANSFER – 477 WELLS FROM NGO DEVELOPMENT CORP.
Top 12 Counties – By Average IP (MCFE)
COUNTY WELLSAVG IP OIL
(BBLS)AVG IP GAS
(MCF)AVG IP (MCFE)
JEFFERSON 41 0 22,698 22,698
HARRISON 30 303 14,553 20,616
GUERNSEY 27 701 5,707 19,720
BELMONT 93 0 15,903 15,903
MONROE 91 6 14,506 14,620
NOBLE 20 280 6,951 12,558
CARROLL 10 425 2,482 10,990
COLUMBIANA 5 0 9,109 9,113
WASHINGTON 5 79 2,551 4,131
RICHLAND 1 20 30 430
COSHOCTON 3 17 4 337
HURON 1 10 5 205
MCFE CALCULATED USING OIL GAS EQUIVALENCE OF 20:1
Top 12 Operators – By Average IP (MCFE)
OPERATOR WELLS
AVG IP OIL
(BBLS)
AVG IP GAS
(MCF)AVG IP (MCFE)
ASCENT RESOURCES UTICA LLC 69 138 18,939 21,706
CHESAPEAKE EXPLORATION LLC 33 333 12,935 19,594
EM ENERGY OHIO LLC 4 0 17,942 17,942
ECLIPSE RESOURCES I LP 31 346 10,925 17,855
EQUINOR USA ONSHORE PROPERTIES 9 22 17,297 17,728
RICE DRILLING D LLC 35 0 17,005 17,005
EAP OHIO LLC 9 0 16,887 16,887
CNX GAS COMPANY LLC 24 0 16,193 16,193
GULFPORT ENERGY CORPORATION 43 0 13,126 13,126
TRIAD HUNTER LLC 6 77 10,874 12,414
ANTERO RESOURCES CORPORATION 35 160 8,783 11,985
GULFPORT APPALACHIA LLC 13 0 11,550 11,550
OPERATORS WITH LESS THAN 4 WELLS ARE NOT INCLUDED. MCFE CALCULATED USING OIL GAS RATIO OF 20:1
Top 12 Operators – By Average IP (MCFE)
0
4
8
12
16
20
24 21
.7
19
.6
17
.9
17
.9
17
.7
17
.0
16
.9
16
.2
13
.1
12
.4
12
.0
11
.6
Ave
rage
IP (
MC
FE)
Tho
usa
nd
s
OPERATORS WITH LESS THAN 4 WELLS ARE NOT INCLUDED. MCFE CALCULATED USING OIL GAS RATIO OF 20:1
2018Top 12 Operators – By
Average IP (MCFE)Well Locations
INC
REA
SIN
G A
VER
AG
E IP
Ohio Oil & Gas Production
PHOTOGRAPH COURTESY OF LARRY WICKSTROM
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
PR Status (ODNR) Wells Reporting Production
YEAR 2018 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
4.0
3.5
3.3
3.2
3.1
0.6 3
.7
11
.0
22
.0
17
.9
16
.4 20
.3
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
20
16
20
17
20
18
Mill
ion
Bar
rels
of
Oil
Conventional Oil Horizontal Oil
YEAR 2018 CONVENTIONAL PRODUCTION IS ESTIMATED BY USING AVERAGE ANNUAL PERCENT DECLINE FOR YEAR 2015-2017.
2018 OIL PRODUCTION IS ESTIMATED TO BE APPROXIMATELY
20% MORE THAN 2017 PRODUCTION
REVERSING TREND FROM 2015-2017
2018 CONVENTIONAL OIL PRODUCTION ESTIMATED2018 HORIZONTAL OIL ESTIMATED
(ONLY FIRST 3 QUARTERS AVAILABLE)
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
81
79
78
72
66
60
52
52
50
49
13 10
0
45
2
95
4 1,3
89 1,7
24
2,3
31
0
500
1000
1500
2000
25001
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
20
16
20
17
20
18
Bill
ion
Cu
bic
Fe
et o
f G
as
Conventional Gas Horizontal Gas
YEAR 2018 CONVENTIONAL PRODUCTION IS ESTIMATED BY USING AVERAGE ANNUAL PERCENT DECLINE YEAR 2015-2016.
2018 GAS PRODUCTION IS ESTIMATED TO BE APPROXIMATELY
34% MORE THAN 2017 PRODUCTION
2018 CONVENTIONAL GAS PRODUCTION ESTIMATED2018 HORIZONTAL GAS ESTIMATED
(ONLY FIRST 3 QUARTERS AVAILABLE)
2.4
TC
F
1.8
TC
F
1.4
TC
F
1.0
TC
F
0.5
TC
F
Ohio Oil Production 1878-2018
HISTORICAL DATA COURTESY OF WICKSTROM GEOSCIENCE, LLC
0
5
10
15
20
25
30
1878 1888 1898 1908 1918 1928 1938 1948 1958 1968 1978 1988 1998 2008 2018
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
20104.8 MMBLS
2016
21.2 MMBLS
1952HYDRAULIC
FRACTURING
2017
19.6 MMBLS
2018
23.4 MMBLS
YEAR 2018 CONVENTIONAL PRODUCTION IS ESTIMATED
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
56% OF ~53,000
PRODUCING WELLS ARE BETWEEN
27 & 41 YEARS OLD
UTICAPRODUCING WELLS BY OPERATOR
(More than 8 Wells)
Through 12/31/2018
1stQtr
2013
2ndQtr
2013
3rdQtr
2013
4thQtr
2013
1stQtr
2014
2ndQtr
2014
3rdQtr
2014
4thQtr
2014
1stQtr
2015
2ndQtr
2015
3rdQtr
2015
4thQtr
2015
1stQtr
2016
2ndQtr
2016
3rdQtr
2016
4thQtr
2016
1stQtr
2017
2ndQtr
2017
3rdQtr
2017
4thQtr
2017
1stQtr
2018
2ndQtr
2018
3rdQtr
2018
Series1 8 15 34 43 67 89 132 165 184 222 246 302 330 334 361 364 372 389 461 503 531 554 606
8 15 34
4367
89132
165184
222 246
302
330
334
361 364
372389
461 503531
554
606
0
100
200
300
400
500
600
700
Gas
in B
CF
14% PRODUCTION
GROWTH1st QTR 2018 THROUGH
3rd QTR 2018
Utica – Gas Production By Quarter
1stQtr
2013
2ndQtr
2013
3rdQtr
2013
4thQtr
2013
1stQtr
2014
2ndQtr
2014
3rdQtr
2014
4thQtr
2014
1stQtr
2015
2ndQtr
2015
3rdQtr
2015
4thQtr
2015
1stQtr
2016
2ndQtr
2016
3rdQtr
2016
4thQtr
2016
1stQtr
2017
2ndQtr
2017
3rdQtr
2017
4thQtr
2017
1stQtr
2018
2ndQtr
2018
3rdQtr
2018
Series1 0.33 0.57 1.31 1.43 1.94 2.46 3.01 3.55 4.43 5.58 5.71 6.22 5.49 4.84 3.95 3.58 3.90 4.04 4.21 4.19 3.94 4.49 5.55
0.30.6
1.3
1.4
1.9
2.5
3.0
3.6
4.4
5.6
5.7
6.2
5.5
4.8
4.0
3.6
3.9 4.04.2
4.23.9
4.5
5.5
0
1
2
3
4
5
6
7
Oil
in M
illio
ns
of
Bb
lsUtica – Oil Production By Quarter
41% PRODUCTION
GROWTH1st QTR 2018
THROUGH3rd QTR 2018
20121stQtr
2013
2ndQtr
2013
3rdQtr
2013
4thQtr
2013
1stQtr
2014
2ndQtr
2014
3rdQtr
2014
4thQtr
2014
1stQtr
2015
2ndQtr
2015
3rdQtr
2015
4thQtr
2015
1stQtr
2016
2ndQtr
2016
3rdQtr
2016
4thQtr
2016
1stQtr
2017
2ndQtr
2017
3rdQtr
2017
4thQtr
2017
1stQtr
2018
2ndQtr
2018
3rdQtr
2018
Series1 78 135 205 288 397 476 562 714 828 926 1020 1134 1265 1351 1415 1492 1561 1613 1691 1804 1897 1949 2035 2242
78135
205288
397476
562
714828
9261020
11341265
13511415
14921561
16131691
18041897
1949 2035
2242
0
500
1000
1500
2000
2500
We
lls O
nlin
e
Utica – Wells Online By Quarter
18%INCREASE IN
WELLS ONLINE
4th QTR 2017 THROUGH
3rd QTR 2018
Class II Injection Wells
PHOTOGRAPH COURTESY OF LARRY WICKSTROM
12.69014.675
17.475
25.278
31.68229.359
35.815
44.941
0.000
5.000
10.000
15.000
20.000
25.000
30.000
35.000
40.000
45.000
50.000
Wat
er
Vo
lum
e In
ject
ed
(M
Bb
ls)
2011 2012 2013 2014 2015 2016 2017 2018
Series2 12.690 14.675 17.475 25.278 31.682 29.359 35.815 44.941
2018 VOLUME SUMMARY53% IN-DISTRICT
47% OUT-OF-DISTRICT
Annual Injection Volume - Statewide
25%INCREASE IN
2018 VOLUMEVERSUS
2017 VOLUME
Top 12 Class II Injection Wells – By Volume
THE TOP 12 WELLS ACCOUNTED FOR 36% OF TOTAL WATER INJECTED IN 2018
** VOLUME TOTALS DO NOT INCLUDE 4th QUARTER 2018
OPERATOR COUNTY WELLVOLUME
(BBLS)%IN
%OUT
Elkhead Gas & Oil Tuscarawas 3415725511/ SWIW #13 3,069,556 63% 37%
Buckeye Brine LLC Coshocton 3403127178 SWIW #11 1,986,384 93% 7%
Environmental Energy Sol. Muskingum 3411928803/ SWIW #30 1,918,241 85% 15%
Buckeye Brine LLC Coshocton 3403127177/ SWIW #10 1,695,986 93% 7%
Clearwater Five, LLC ** Guernsey 3405924445/ SWIW #17 1,171,675 86% 14%
Clearwater Three, LLC ** Guernsey 3405923986/ SWIW #15 1,033,418 92% 8%
Clearwater Three, LLC ** Guernsey 3405924473/ SWIW #20 1,033,418 92% 8%
Chesapeake Energy Tuscarawas 3415725519/ SWIW #14 1,025,867 100% 0%
David R. Hill, Inc. Guernsey3405924067 &
3405924188/SWIW #11 & #13
879,118 97% 3%
Dennison Disposal, LLC Tuscarawas 3415725507/ SWIW #11 876,596 100% 0%
Cambrian Well Services LLC Muskingum 3411928780/SWIW #28 676,727 88% 12%
CNX Gas Company Belmont 3401320609/SWIW #1 654,579 100% 0%
