Meanwhile, Magnum Hunter Resources Corp (NYSE:MHR) is in the process of drilling its first well in the Utica. The company, which just sold its Eagle Ford acreage, believes that its Utica acreage is in that same liquids sweet spot that is appealing to both Gulfport and Rex. We won’t know for sure until the company reports results from that initial well.
At one time the Ohio portion of the Utica Shale was believed to hold more than $500 billion worth of oil. It’s beginning to appear that those early estimates by the Ohio Department of Natural Resources of up to 5.5 billion barrels of recoverable oil reserves might have been a bit too optimistic. That doesn’t mean that the Utica isn’t going to turn out to be a very profitable play for some companies. In fact, for the right operator that has the right location, the Utica looks like it will turn out to be a very important driver of both profit and production growth for years to come.
The article Is the Utica Shale Still a Top-Tier Play? originally appeared on Fool.com.
Motley Fool contributor Matt DiLallo has no position in any stocks mentioned. The Motley Fool owns shares of Devon Energy and has the following options: Long Jan 2014 $20 Calls on Chesapeake Energy, Long Jan 2014 $30 Calls on Chesapeake Energy, and Short Jan 2014 $15 Puts on Chesapeake Energy.
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