The company recently did this same thing in the hot new Utica shale play of Ohio.
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The Utica Shale, bringing tens of thousands of jobs to Ohio?
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Ohio also has the Utica Shale, another formation rich in oil and gas.
The project will cover Pennsylvania, West Virginia and Ohio, where a frenzy of drilling is under way in the huge, gas-rich Marcellus and Utica shale formations.
The project will cover Pennsylvania, West Virginia and Ohio where a frenzy of drilling is under way in the huge, gas-rich Marcellus and Utica Shale formations.
Total gets 155, 000 acres net, and also has the option to acquire a 25% share in all future acreage acquired in the liquids-rich section of the Utica shale.
Confirming what we surmised nearly two months ago, Chesapeake Energy revealed this morning that French oil giant Total is its new joint venture partner in the Utica Shale.
The TGP has access to some of the largest shale basins such as the Marcellus and Utica shale, and also connects major cities on the East Coast such as New York and Boston.
In fact, to illustrate the early nature of this industry in Ohio, recent estimates indicate 431 permits have been issued in the Utica shale, 178 wells have been drilled and 36 wells are producing natural gas.
James Zehringer, Director of the Ohio Department of Natural Resources said Ohio is still early in the Utica shale play but protecting the environment as well as public health and safety will be critical to growing the industry in the state.
The project will cover Pennsylvania, West Virginia and Ohio where a frenzy of drilling is under way in the huge, gas-rich Marcellus and Utica Shale formations as well as New York and other states in the East that have put a hold on new drilling.
It may be too early to call Utica the last big shale-oil deposit, in part because its productivity hasn't been proven, said Pete Stark, with energy consultancy IHS. But the Utica's size, geology and organic content make it "a promising play, " he said.
The additional capacity of 1 billion cubic feet per day will help Chesapeake efficiently transport the natural gas produce from the shale deposits in Utica to consumers in the region.
Chesapeake has lease agreements for drilling at shale gas deposits in the Utica basin that hold around 15.7 trillion cubic feet of natural gas.
The smorgasbord of shale and other unconventional plays like the Bakken, Utica, Marcellus, Eagle Ford, Barnett, Fayetteville, Monterey, Mississippi Lime and many more is almost too much to take in.
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Besides the Bakken and Barnett regions, the other major shale fields include the Fayetteville, Haynesville, Marcellus, Utica, Anadarko Woodford and Eagle Ford regions.
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Foreigners have been hot for shale in recent months, with Chesapeake also today unveiling its Utica JV partner as Total.
The combined company will have about 80, 000 miles of pipelines stretching nationwide, Kinder Morgan said Sunday in announcing the deal, with connections to many of the biggest natural gas shale plays in the U.S., including the Eagle Ford, Marcellus, Utica, Haynesville, Fayetteville and Barnett formations.
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