Following the release of Antero Resources second quarter financial results, it seems this independent oil and gas producer is now the current record holder for the highest producing well in the Utica. Antero’s Yontz well peak rate tested at a whopping 38.9 million cubic feet a day (Mmcf/d) equaling to an astonishing 8,879 barrels of oil equivalent a day (BOE/d) in Monroe County.
While most companies would be happy to have a single well putting out such outstanding numbers, Antero has a whole host of phenomenal wells they have tested over the past year. This is great news for both Antero, who is currently operating in both Noble and Monroe Counties, and the region.
With the news of these results, Antero has increased its footprint in the Utica/Point Pleasant, proving Monroe and Noble Counties as top tier locations for Utica development. And as we have seen in other shale producing regions in the Utica, more production means more jobs and economic opportunity. Just ask Carroll County residents where unemployment dropped 9 percent in just two years with the help of Utica Shale development.
Both counties have also experienced an increase in sales tax revenues as a result of shale development in the region. Even though Monroe County remains in its infancy in terms of the exploration of the Utica/Point Pleasant, Monroe has already seen a substantial uptick in sales tax receipts by 23 percent, increasing from $1,066,456.04 in 2011 to $1,376,950.39 in 2012. Noble County, while further along in the exploration of the Utica Shale, has also seen a considerable increase in their sales tax revenue, with a 20 percent increase from $726,578.72 in 2011 to $908,412.63 in 2012. Thanks to great wells by Consol, Rex Energy and Antero, as well as the building of a natural gas processing plant by MarkWest, these numbers are only set to grow.
Antero plans to develop a total of 21 horizontal Utica wells in 2013 and has over 101,000 acres leased in the Utica. The company is also testing the reduction of their well spacing. While most companies are currently using 1,000 foot spacing between wells, Antero is testing out 500 foot spacing in order to increase the number of wells in the Utica. That means more steel pipe being made by V&M and US Steel to bring these wells into production, and more opportunities for Ohioans to work either for or supplying the industry in eastern Ohio.
Until now, Antero production numbers may have been the best kept secret in the Utica. But today, it feels safe to say we can expect more prolific numbers from this company for many years to come.