Chesapeake Energy Corporation (NYSE:CHK)’s not alone. With infrastructure constraints expected to ease significantly this year, several Utica producers are planning to drill new wells. For instance, Gulfport Energy Corporation (NASDAQ:GPOR), which boasts 128,000 acres in the play, said it will allocate the vast majority of its capital budget for the year toward its Utica operations. The Oklahoma City-based company plans on drilling about 50 gross wells in 2013.
The performance of Magnum Hunter Resources Corp (NYSE:MHR)’s test wells will be interesting to note. Since the Utica is still very much in its infancy, production data is severely limited. And of the limited data that exists, well results have been quite mixed. Some operators, like Gulfport Energy, have reported highly encouraging results, while others’ performance has been somewhat of a letdown.
For instance, Devon Energy Corp (NYSE:DVN) reported “disappointing” results from a couple of wells it drilled last year that were thought to be in the play’s oil-rich zone. The company has since decided to sell its acreage in the eastern Ohio portion of the Utica, having placed 244,000 of its gross acres up for bidding in January.
The article Magnum Hunter Begins Drilling in Utica Shale originally appeared on Fool.com and is written by Arjun Sreekumar.
Motley Fool contributor Arjun Sreekumar 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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