Another gas pocket beckons drillers to N.Y. ~ The Utica Shale

While the spotlight is fixed firmly on the Marcellus Shale, some energy firms think the key to widespread natural gas production in New York might lie a few thousand feet deeper.

The Utica Shale — an energy-rich rock formation that lies several thousand feet below the Marcellus Shale across an equally massive swath of the Northeast — is stirring the interest of drilling companies with footprints in central and southern New York.

Last week, Norse Energy filed the state’s first application for a permit to drill a horizontal well in the Utica Shale for gas extraction using high-volume, hydraulic fracturing — the same techniques used to tap the Marcellus.

“Our experts believe that New York’s Utica has even more potential than the Marcellus and that it could rival what’s being experienced right now in Pennsylvania with the Marcellus,” said Norse Executive Vice President Dennis Holbrook.

The Utica Shale covers 28,500 square miles in New York — the majority of the state’s area — and extends south to Tennessee and north to Quebec, Canada.

The Utica and Marcellus formations both move closer to the surface as they extend north into New York, with portions of the Marcellus emerging aboveground at outcrops in several areas.

While the Marcellus is at ideal depths in much of Pennsylvania, it becomes too shallow to drill in some areas beyond the Southern Tier.

And while the Utica is too deep to economically drill in most of Pennsylvania, the depth of the formation is “optimal” in parts of central New York, Holbrook said.

The northern part of the Pennsylvania is where they’ve had some of the best results, with the Marcellus approximately in the 5,000-to-6,000-feet range. The Utica Shale is estimated to be right around that 5,000 to 6,000 foot range in New York. The Marcellus will be more interesting the closer you are to the Pennsylvania border, and then the (farther) north you go, the Utica will become more interesting. The potential of the Marcellus has been very well established and the Utica will be the next one to be targeted.

The potential exists for both Marcellus and Utica drilling in Norse Energy’s 130,000-acre leasehold in Madison, Chenango and Broome counties. Holbrook stated that they will know more once they get the chance to go out and do some exploration.

Vertical test wells have been drilled into the Utica in some areas, including Ohio and Quebec, but the potential of the formation is still largely unknown.

In October 2010, Pittsburgh-based Consol Energy announced that a vertical Utica well in eastern Ohio produced 1.5 million cubic feet of natural gas in a 24-hour period.

Gastem, a Montreal-based company with a 24,000-acre leasehold in southern Otsego County is also waiting to explore the potential of the formation.

Gas extraction using high-volume, hydraulic fracturing in New York has been postponed while the state Department of Environmental Conservation completes an ongoing environmental and regulatory review, expected to last at least several more months.

Norse’s Utica well application, filed with the state DEC in July for a site in the Town of Smyrna in northern Chenango County, will have to wait alongside several dozen applications for horizontal Marcellus wells pending with the state.

Looking to invest in gas rich land. Call “The Land Expert”, Kellie Place at 607-434-5263.

Gas well in Big Flats, NY

About Kellie M. Place Century 21 Upstate NY

Licensed Real Estate Salesperson UPSTATE NY'S REAL ESTATE & LAND EXPERT "MULTI-MILLION DOLLAR TOP PRODUCER" Specializing in LAND, RESIDENTIAL, COMMERCIAL, MULTI-FAMILY/INVESTMENT PROPERTIES AND NATURAL GAS LAND ACQUISITIONS. VOTED "BEST of the BEST" REALTOR IN PEOPLE'S CHOICE AWARDS! WINNER OF THE QUALITY SERVICE AWARD! HOT POINTS: Upstate NY's Real Estate Development Expert * 30 Yrs of Development/Planning Experience * Multi-Million Dollar Top Producer * 30 Yr /Chairperson of Oneonta Planning Commission * Leading Agent with Proven Results * Knowledge of Upstate NY Communities * Aggressive Marketing with International Exposure * Member Otsego County Chamber of Commerce * Proudly serving Otsego, Delaware, Chenango, Madison, Schohari and Broome Counties. My name is Kellie Place and I am a Multi-Million Dollar TOP Producer with CENTURY 21. I serve as the Chairperson of the Oneonta Planning Commission of which I have been a member for over 30 years. Having worked with developers and engineers on both sides gives me an edge above other agents in all types of real estate. Co-Founder and Director of Administration of the internationally renowned New York Summer Music Festival at Oneonta State College. Chairperson of the Mayor's Arts & Events Task Force. Executive Board Member of the Community Arts Network of Oneonta. Co-founder and Executive Director of the Calcio Soccer Club and a member of the Broome County Soccer Association. I have coached youth soccer and hockey for over 20 years. I was the recipient of the "Volunteer of the Year" Award at the National Soccer Hall of Fame Co-Founder of the grassroots organization, Oneonta Community Alliance for Youth. Serve on the Otsego County Chamber of Commerce Business Action Committee as well as active in local, county and state politics. In short, an active community member that has...... "Served the Community for over 30 years!"
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