The Debrosse Memorial Report
2015 Oil & Gas Activity in Ohio
69th Annual Winter Meeting
Prepared by:
Marty Shumway - Shumway Resources, LLC
Bill Arnholt - Northwood Energy Corporation
Tim 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 Fracturing
Clinton/Berea Plays
Morrow County
Trempealeau Play
Clinton Play
Tight Gas
Sands
Clinton Play
History of Ohio Wells Drilled by Year and
Reservoir
2015 Permit & Completion Activity
PHOTOGRAPHS COURTESY OF LARRY WICKSTROM
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
84
109 97
67
85
67
88
56
88
120
68 68
23
59
59
46
56
56
55
34
23
24
41
58
19
45
53
32
44
40
40
52
36
59
37
54
Permits Completions Plugging Permits
Permitted Formations
0
100
200
300
400
500
600
700
692
157
48 45 29 12 4 4 3 3
2015
Completions
Permits to Drill
Permits to Plug
2015
Completions
Permits to Drill
Permits to Plug
Operators Completing Wells By Year
2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
116 127
147
162
182
143
126 121 112 113
89 87
Wells Completed – Type
534 Total Completions
Horizontal
373, 70%
Vertical
151, 28%
Directional
4, 1%
Unknown
6, 1%
2015
Horizontal
Completions By
Formation
2015
Vertical
Completions By
Formation
2015
Class II
Injection Well
Completions
By TD
Formation
Completions By Month
JAN FEB MAR APRIL MAY JUNE JULY AUG SEP OCT NOV DEC
21
44
35
27
40 40 41
24
14 12
27
48
2
15
23
19
14 15 13
10
7 11
12
10
Horizontal Wells Vertical Wells
Completions – Top 10 Counties
COUNTY 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”
Completions By County
88
78
67
44 46
30
0 4 0
12
4
2
3
5
9 3
12
17 12 15 2
81
HORIZONTAL VERTICAL
Top 12 Most Active Operators – By Wells
OPERATOR
% TOT
WELLS
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
Hess Ohio – CNXGUE10N7W #H-8
PHOTOGRAPH COURTESY OF LARRY WICKSTROM
Top 12 Most Active Operators – By Footage
OPERATOR
% TOTAL
FOOTAGE
2015
FOOTAGE
▲%
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
% TOT
WELLS
2015
WELLS
▲%
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
FOOTAGE
2015
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
YEAR
TOTAL
FOOTAGE WELLS
FOOTAGE
PER 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
3956
3379
3568
4411
2412
7438
3054
2274
5908
4758
1134
1696
3142
3603
YEAR 2015 LARGEST CHANGE OF WELL OWNER WAS BROAD STREET
ENERGY CO & BROAD STREET SERV LLC TO M&R INVESTMENTS OHIO LLC
Rice Energy “Razin Kane” and “Krazy Train”
PHOTOGRAPH COURTESY OF LARRY WICKSTROM
Top 12 Counties – By Average IP (MCFE)
COUNTY WELLS
AVG 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 INCLUDED
MCFE 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
AverageIP(MCFE)
Thousands
OPERATORS WITH LESS THAN 4 WELLS ARE NOT INCLUDED.
MCFE CALCULATED USING OIL GAS RATIO OF 15:1
2015
Top 10 Operators – By
Average IP (MCFE)
Well Locations
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
2015PRODUCTION-QUARTER3&4-MBBLS
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
2015PRODUCTION-QUARTER3&4-BCF
OPERATOR REPORTED IP – GAS (MCF/day)
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
COUNTOFWELLS
YEAR
Producing Wells (ODNR) Reported Production
YEAR 2015 WELL COUNT IS ESTIMATED
Production Summary – Oil By Year
8.1
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
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
MillionBarrelsofOil
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 BY
1,074 HORIZONTAL WELLS
23,900 VERTICAL WELLS (EST)
Production Summary – Gas By Year
121
104
113
118
115
106
111
106
108
90
92
89
88
85
83
77
79
76
82
76
80
80
73
66
59
53
13
100
452
954
0
200
400
600
800
1000
1200
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
BillionCubicFeetofGas
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 BY
1240 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
MILLIONSOFBARRELSOFOIL
YEAR
1896
23.9 MMBLS
TRENTON
1945
3.0 MMBLS
EOR
1964
15.9 MMBLS
TREMPEALEAU
1984
15.3 MMBLS
CLINTON
2010
4.7 MMBLS
2015
25.6 MMBLS
UTICA
1952
HYDRAULIC
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
COUNTOFWELL
OIL(BBLS)/GAS(MCF)
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
PRODUCING
WELLS BY
OPERATOR
Through
12/31/2015
Utica – Gas Production By Quarter
1st Qtr
2013
2nd Qtr
2013
3rd Qtr
2013
4th Qtr
2013
1st Qtr
2014
2nd Qtr
2014
3rd Qtr
2014
4th Qtr
2014
1st Qtr
2015
2nd Qtr
2015
3rd Qtr
2015
4th Qtr
2015
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 15
34
43
67
89
132
165
184
222
246
302
0
50
100
150
200
250
300
350
GasinBCF
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 Qtr
2013
2nd Qtr
2013
3rd Qtr
2013
4th Qtr
2013
1st Qtr
2014
2nd Qtr
2014
3rd Qtr
2014
4th Qtr
2014
1st Qtr
2015
2nd Qtr
2015
3rd Qtr
2015
4th Qtr
2015
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
0.33
0.57
1.31 1.43
1.94
2.46
3.01
3.55
4.43
5.58
5.71
6.22
0
1
2
3
4
5
6
7
OilinMillionsofBbls
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 Qtr
2013
2nd Qtr
2013
3rd Qtr
2013
4th Qtr
2013
1st Qtr
2014
2nd Qtr
2014
3rd Qtr
2014
4th Qtr
2014
1st Qtr
2015
2nd Qtr
2015
3rd Qtr
2015
4th Qtr
2015
Wells 92 152 243 349 417 503 673 778 877 978 1093 1221
92
152
243
349
417
503
673
778
877
978
1093
1221
0
200
400
600
800
1000
1200
1400
WellsOnline
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
UTICA
ESTIMATED
AVERAGE EUR
PER 1000’ BY
TOWNSHIP
USING
GAS:OIL RATIO
OF 15:1
(Count of data
points per township
posted)
Class II Injection Wells
PHOTOGRAPH COURTESY OF LARRY WICKSTROM
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
WaterVolumeInjected(Bbls)
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
2015
Top 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
marty@shumwayresources.com
Special Thanks To:
Ohio Oil and Gas Association
Bill Arnholt, Northwood Energy
Tim Knobloch, James Knobloch Petroleum Consultants, Inc.
Larry Wickstrom, Wickstrom Geoscience, LLC

OOGA's DeBrosse Memorial Report: 2015 Oil & Gas Activity in Ohio

  • 1.
    The Debrosse MemorialReport 2015 Oil & Gas Activity in Ohio 69th Annual Winter Meeting Prepared by: Marty Shumway - Shumway Resources, LLC Bill Arnholt - Northwood Energy Corporation Tim Knobloch - James Knobloch Petroleum Consultants, Inc.
  • 2.
    The Debrosse MemorialReport 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
  • 3.
    Oil & GasProduction 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
  • 4.
    0 1000 2000 3000 4000 5000 6000 BEREA OHIO SHALECLINTON TRENTON ROSE RUN CAMBRIAN NW Ohio Lima-Indiana Technologic Advance: Hydraulic Fracturing Clinton/Berea Plays Morrow County Trempealeau Play Clinton Play Tight Gas Sands Clinton Play History of Ohio Wells Drilled by Year and Reservoir
  • 5.
    2015 Permit &Completion Activity PHOTOGRAPHS COURTESY OF LARRY WICKSTROM
  • 6.
    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%
  • 7.
    Permit and CompletionsBy Month JAN FEB MAR APRIL MAY JUNE JULY AUG SEP OCT NOV DEC 84 109 97 67 85 67 88 56 88 120 68 68 23 59 59 46 56 56 55 34 23 24 41 58 19 45 53 32 44 40 40 52 36 59 37 54 Permits Completions Plugging Permits
  • 8.
  • 9.
  • 10.
  • 11.
    Operators Completing WellsBy Year 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 116 127 147 162 182 143 126 121 112 113 89 87
  • 12.
    Wells Completed –Type 534 Total Completions Horizontal 373, 70% Vertical 151, 28% Directional 4, 1% Unknown 6, 1%
  • 13.
  • 14.
  • 15.
  • 16.
    Completions By Month JANFEB MAR APRIL MAY JUNE JULY AUG SEP OCT NOV DEC 21 44 35 27 40 40 41 24 14 12 27 48 2 15 23 19 14 15 13 10 7 11 12 10 Horizontal Wells Vertical Wells
  • 17.
    Completions – Top10 Counties COUNTY 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”
  • 18.
    Completions By County 88 78 67 4446 30 0 4 0 12 4 2 3 5 9 3 12 17 12 15 2 81 HORIZONTAL VERTICAL
  • 19.
    Top 12 MostActive Operators – By Wells OPERATOR % TOT WELLS 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
  • 20.
    Hess Ohio –CNXGUE10N7W #H-8 PHOTOGRAPH COURTESY OF LARRY WICKSTROM
  • 21.
    Top 12 MostActive Operators – By Footage OPERATOR % TOTAL FOOTAGE 2015 FOOTAGE ▲% 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
  • 22.
    Top 12 MostActive Counties – By Wells COUNTY % TOT WELLS 2015 WELLS ▲% 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
  • 23.
    Top 12 MostActive Counties – By Footage COUNTY % TOT FOOTAGE 2015 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
  • 24.
    Drilling Footage andWells – By Year YEAR TOTAL FOOTAGE WELLS FOOTAGE PER 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%
  • 25.
    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 3956 3379 3568 4411 2412 7438 3054 2274 5908 4758 1134 1696 3142 3603 YEAR 2015 LARGEST CHANGE OF WELL OWNER WAS BROAD STREET ENERGY CO & BROAD STREET SERV LLC TO M&R INVESTMENTS OHIO LLC
  • 26.
    Rice Energy “RazinKane” and “Krazy Train” PHOTOGRAPH COURTESY OF LARRY WICKSTROM
  • 27.
    Top 12 Counties– By Average IP (MCFE) COUNTY WELLS AVG 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 INCLUDED MCFE CALCULATED USING OIL GAS RATIO OF 15:1
  • 28.
    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
  • 29.
    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 AverageIP(MCFE) Thousands OPERATORS WITH LESS THAN 4 WELLS ARE NOT INCLUDED. MCFE CALCULATED USING OIL GAS RATIO OF 15:1
  • 30.
    2015 Top 10 Operators– By Average IP (MCFE) Well Locations
  • 31.
    IP-OIL Versus Production 42WELL 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 2015PRODUCTION-QUARTER3&4-MBBLS OPERATOR REPORTED IP – OIL (BBLS/day)
  • 32.
    IP-GAS Versus Production 68WELL 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 2015PRODUCTION-QUARTER3&4-BCF OPERATOR REPORTED IP – GAS (MCF/day)
  • 33.
    Ohio Oil &Gas Production PHOTOGRAPH COURTESY OF LARRY WICKSTROM
  • 34.
    Producing Wells –By Year 0 10000 20000 30000 40000 50000 60000 1984 1989 1994 1999 2004 2009 2014 COUNTOFWELLS YEAR Producing Wells (ODNR) Reported Production YEAR 2015 WELL COUNT IS ESTIMATED
  • 35.
    Production Summary –Oil By Year 8.1 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 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 MillionBarrelsofOil 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 BY 1,074 HORIZONTAL WELLS 23,900 VERTICAL WELLS (EST)
  • 36.
    Production Summary –Gas By Year 121 104 113 118 115 106 111 106 108 90 92 89 88 85 83 77 79 76 82 76 80 80 73 66 59 53 13 100 452 954 0 200 400 600 800 1000 1200 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 BillionCubicFeetofGas 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 BY 1240 HORIZONTAL WELLS 37,000 VERTICAL WELLS (EST)
  • 37.
    Ohio Oil Production1886-2015 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 MILLIONSOFBARRELSOFOIL YEAR 1896 23.9 MMBLS TRENTON 1945 3.0 MMBLS EOR 1964 15.9 MMBLS TREMPEALEAU 1984 15.3 MMBLS CLINTON 2010 4.7 MMBLS 2015 25.6 MMBLS UTICA 1952 HYDRAULIC FRACTURING
  • 38.
    Ohio’s Aging Wells 0 1000 2000 3000 4000 1 10 100 1000 10000 100000 05 10 15 20 25 30 35 40 45 50 COUNTOFWELL OIL(BBLS)/GAS(MCF) WELL AGE - YEARS Average Annual Oil Average Annual Gas Count of Wells 54% OF ~53,000 PRODUCING WELLS ARE BETWEEN 25 & 39 YEARS OLD
  • 39.
  • 40.
    Utica – GasProduction By Quarter 1st Qtr 2013 2nd Qtr 2013 3rd Qtr 2013 4th Qtr 2013 1st Qtr 2014 2nd Qtr 2014 3rd Qtr 2014 4th Qtr 2014 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 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 15 34 43 67 89 132 165 184 222 246 302 0 50 100 150 200 250 300 350 GasinBCF 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%
  • 41.
    Utica – OilProduction By Quarter 1st Qtr 2013 2nd Qtr 2013 3rd Qtr 2013 4th Qtr 2013 1st Qtr 2014 2nd Qtr 2014 3rd Qtr 2014 4th Qtr 2014 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 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 0.33 0.57 1.31 1.43 1.94 2.46 3.01 3.55 4.43 5.58 5.71 6.22 0 1 2 3 4 5 6 7 OilinMillionsofBbls 18% 22% 27% 36% 25% 26% 2% 9% FLATTENING QUARTERLY INCREASE IN OIL PRODUCTION BEGINNING IN 2ND QTR 2015 9%
  • 42.
    Utica – WellsOnline By Quarter 1st Qtr 2013 2nd Qtr 2013 3rd Qtr 2013 4th Qtr 2013 1st Qtr 2014 2nd Qtr 2014 3rd Qtr 2014 4th Qtr 2014 1st Qtr 2015 2nd Qtr 2015 3rd Qtr 2015 4th Qtr 2015 Wells 92 152 243 349 417 503 673 778 877 978 1093 1221 92 152 243 349 417 503 673 778 877 978 1093 1221 0 200 400 600 800 1000 1200 1400 WellsOnline 16% 34% 21% 19% 13% 12% 12% 12% INCREASE IN WELLS ONLINE CONSISTENT BEGINNING IN 1ST QTR 2015
  • 43.
    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
  • 44.
    UTICA ESTIMATED AVERAGE EUR PER 1000’BY TOWNSHIP USING GAS:OIL RATIO OF 15:1 (Count of data points per township posted)
  • 45.
    Class II InjectionWells PHOTOGRAPH COURTESY OF LARRY WICKSTROM
  • 46.
    1 2 34 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 WaterVolumeInjected(Bbls) 2014 2013 2012 2011 16 % Increase 13% Increase 25% Increase 2015 8% Increase 141 WELLS REPORTED INJECTION VOLUMES IN 2015 Annual Injection Volume - Statewide
  • 47.
    Top 10 ClassII 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
  • 48.
    2015 Top 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
  • 49.
    THANK YOU! Marty Shumway (614)846-1391 marty@shumwayresources.com Special Thanks To: Ohio Oil and Gas Association Bill Arnholt, Northwood Energy Tim Knobloch, James Knobloch Petroleum Consultants, Inc. Larry Wickstrom, Wickstrom Geoscience, LLC