The Utica shale play is hot, hot, hot! Deals are being announced like popcorn popping. On Tuesday, Chesapeake Energy chief executive Aubrey McClendon, who is particularly bullish on the Utica, said he expects to strike a joint venture in the play by the end of next month according to UpstreamOnline.com. Results from Chesapeake’s first horizontal well in the Utica have been encouraging, testing at 6.5 MMcfepd, per a report by the Oil and Gas Financial Journal.
It was noted in the Sept. 8 Reuters news report (see below) that “PDC paid about $1,700 per acre, while the Hess joint venture with CONSOL is valued at $6,000 per acre but there is some talk that recent prices have climbed as high as $10,000 per acre, analysts said.”
Sept. 7 (Reuters) Petroleum Development Corporation (PDC) plans acquisition of 30,000 leasehold acres in Utica .
Sept. 7 (Reuters) Consol and Hess announce joint venture deal to explore Utica.
Sept. 8 (Reuters) Hess increases Utica position with purchase of Marquette Exploration.
Recall that Consol entered into a joint venture with Houston-based Noble Energy in mid-August in which Noble acquired a 50% interest in the Consol’s Marcellus holdings. Consol had acquired 750,000 acres in Marcellus but needed money to develop them; partnerships are an answer to that problem.
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