1. Utica well results
The deal with Total isn't the biggest ticket item for investors concerning the Utica shale. Last year, Chesapeake announced that it valued its Utica assets between $15 billion and $20 billion. It was an eyebrow-raising valuation among skeptics of the company -- even those who do not doubt its ability to close JVs -- because the company had only released results from a total of 4 wells in the Utica. In March, the Ohio Department of Natural Resources is scheduled to release comprehensive Utica well results.
Whether the information comes out from the state of Ohio, or exploration and production companies try to head off the state and publish ahead of the March annual report date -- Devon is expected to release well results sooner -- there is going to be a lot more information about Utica wells than there has been to this point.Approximately 140 wells are permitted in the Utica -- 83 of which are horizontal wells. Chesapeake has 90 drilling permits in the Utica. The upcoming data won't just provide a better handle on production possible in the Utica, but specifically the liquids growth potential. More oil than previously estimated for the liquids potential in the Utica, in addition to the amount of natural gas liquids, would be a boon to many acreage holders, including Chesapeake.
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