Consol Strikes Utica Shale Gas

Wheeling Intelligencer
9  November 2010
By Casey Junkins, Staff Writer

ST. CLAIRSVILLE - At a depth of 8,450 feet beneath the Belmont County soil, Consol Energy Inc. recently struck the Utica Shale rock formation - a discovery that will allow the company to develop more natural gas.

Better known locally for its coal mining business at the Marshall County Shoemaker and McElroy mines, Consol has more than 70,000 acres for natural gas development in and around what company officials refer to as the "discovery well in Belmont County."

"While most of our delineation efforts are focused on the Marcellus Shale, our vast acreage holdings include other zones that warrant testing, including the Utica Shale," said Consol Energy Chairman, President and Chief Executive Officer J. Brett Harvey in the company's third quarter earnings report. "As a result of this discovery, we will shift some of our exploration capital to this shale in 2011."

With the overwhelming attention placed on the Marcellus Shale rush, the Utica Shale has, to this point, hovered under a bit under the radar. This rock formation lies deep under the ground, with the Marcellus layer overlapping it at some points. It extends throughout a large region including portions of Ohio, West Virginia, Pennsylvania, New York and Canada.

According to the Consol earnings report, the Belmont County Utica Shale well produced 1.5 million cubic feet of gas during a 24-hour period from its 200-foot bed. Company information released Oct. 29 states Consol plans to "hydraulically fracture, and then open-flow the well. If successful, the Gas Division will drill a horizontal well on the same pad." Hydraulic fracturing, commonly known as "fracking," is the process by which drillers pump millions of gallons of water, sand and chemicals into the gas shaft in order to break the rock to release the energy source.

Consol Director of Public Relations Joe Cerenzia referred all questions regarding the gas developments to Public Relations Manager Laural Ziemba, who did not immediately return calls and e-mails seeking additional information about the precise location of the Utica well in Belmont County.

Belmont County Commissioner Ginny Favede responded via e-mail that she believed the well to be near Ohio 800 in the Barnesville area. Barnesville Village Administrator Roger Deal was unaware of the well's location.

As for additional Consol operations, company information also shows an increase of 44 percent in natural gas production, resulting in a record 35.8 billion cubic feet during the third quarter.

Meanwhile, David Hill, owner and operator of Byesville, Ohio-based David Hill Inc., is drilling a deep well in the Kirkwood Heights area, near Bridgeport. Hill also hopes to strike the Utica Shale with this shaft, which he intends to grind 13,000-14,000 feet into the ground.

As Chesapeake Energy makes plans to drill on private property near The Highlands in Ohio County - and awaits permission from the West Virginia Department of Environmental Protection to drill in Oglebay Park - Consol is looking to expand its gas development throughout the area.

"In our other new area, Northern West Virginia, where we have about 270,000 acres, we have drilled the vertical portions of the wells on our first pad," Harvey stated. "Shortly, one of the rigs currently drilling in Greene County, Pa. will be relocated to Northern West Virginia to drill the horizontal portions of these wells."

Earlier this year, Consol acquired the former Dominion Resources Inc. gas production company for about $3.5 billion.

Harvey wrote in the Oct. 29 release, "... we continue to integrate the Dominion acreage into our drilling plans and to delineate our vast acreage holdings. Our goal is to have a clearer understanding of the Marcellus reserves by the middle of 2011 and determine which areas will be integrated into our long term drilling plans and which areas may be considered for possible sale."