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Utica Shale Natural Gas Field - Quebec, Canada Shale

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What is the Utica Shale Natural Gas Formation?

The Utica Shale Natural Gas Field is a fairly new natural gas discovery located in the St. Lawrence Lowlands of Quebec, Canada, Montreal, and Northern New York.  This is not the only shale field located in New York.  The other shale formation would be the Marcellus Shale.

Like many of the other shale plays in the USA, higher natural gas prices in 2008 and new drilling technology increased shale exploration here in the states and Canada which is also home for the Horn River Shale in Northeast British Columbia.

The Utica Shale was once thought to be one of the hottest natural gas shale plays in Canada.  Many small companies which are listed list below were drilling test wells in the lower St. Lawrence River.  Forest Oil appears to be the first company to do extensive shale testing and drilling at the Utica Shale Formation.  Forest Oil recently came out with results from a shale drilling program that started in 2007 which is located in St. Lawrence Lowlands and Gaspe Peninsula.  Forest Oil says they drilled two vertical pilot test wells with a depth of 4,800 feet deep. Production rates tested up to 1 million cubic feet per day.

Estimates for Natural Gas in the Utica Shale Deposit Field ranges between 2 trillion cubic feet to up to a whopping 69 trillion cubic feet of Natural Gas.   Many companies are still doing tests.   If proven true, The Utica Shale play would be in the ranks of several other shale plays in the United States including the Barnett Shale, Marcellus Shale, and Haynesville Shale.

Fracturing the Shale in Quebec seems to be rather easy like the other shale plays.  Companies drill a vertical well followed by a horizontal well.  They use millions of gallons of water along with sand at high pressures to fracture the shale.  They then extract the gas out of the drilling wells which is trapped in the shale pores.  This natural gas is then run through various pipelines and sold.

GreenCastle Energy Resources on which trades on the Toronto Stock Exchange, announced on June 12th, 2008 the company is entering the Utica Shale Formation.  Greencastle applied for an exploration permit in the St. Lawrence Lowlands of Quebec. The permit covers approximately 6,000 hectares in the Longueil area, east of Montreal, to the southwest along the trend from the recent gas discovery in the Utica Shale by Forest Oil Corporation.  It appears that the Utica Shale is beneath GreenCastles land exploration.

2009 Update:  We are almost half way through 2009 and after hitting the low $3's on natural gas prices, things seem to have bottomed.  The Utica Shale has been put on hold by many companies due to the fact that drilling has fallen off a cliff.  Many shale formations such as the Utica Shale have been left untapped and undeveloped.  If Natural Gas ever goes above $8 anytime soon, you will see the exploration companies come back to Utica Shale.  In the meantime, shale plays like the Barnett Shale and the Haynesville Shale rule!
2010 Update:  Natural Gas prices are starting to rise again which could potentially bring the drillers back in droves.  If we get $8 natural gas in th Utica Shale in 2010, things will be just fine here!


Drilling for Natural Gas has been a popular topic in the United States and Canada.  The Utica Shale Field is very new but appears to be a huge shale find.  Only time will tell if the Utica Shale find will pan out for the following companies drilling there below.  In addition to the Utica Shale....here are more exciting shale plays in the United States and Canada.  Haynesville Shale -  Marcellus Shale -  Horn River Shale - Bakken Oil Shale - Fayetteville Shale - Brazil Oil Field -  Woodford ShaleBarnett Shale - Chattanooga Shale

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Utica Shale Map - Quebec
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Utica Shale Map - Canada

Companies Drilling at Utica Shale - Quebec Shale -  Utica Shale Stocks

- Forest Oil FST -  Over the last two years, Forest Oil has accumulated approximately 269,000 net acres, under lease or farmout at Utica ShaleUtica Shale (60 – 100% WI) – Forest drilled and completed the first three horizontal Utica Shale wells in Quebec's St. Lawrence Lowlands, which were successfully cased and fracture stimulated in four stages with rates ranging from 100 – 800 Mcf/d. Frac load flowback was incomplete due to the lack of coiled tubing units in the area. Forest expects to continue to test its wells after the winter season is over. Although sustained rates were not as high as anticipated, the tests have allowed Forest to identify the section of the shale it intends to target in future test wells. Each of the wells were tested in different sections of the Utica Shale with an objective of gathering data on productivity to allow optimization of future completions. Furthermore, Forest proved the ability to successfully drill the wells horizontally and pump multi-stage slickwater frac jobs without major operational issues.
( from seekingalpha )
Our mechanical success rate expanded in 2008 with a successful drilling and completion of a three well horizontal pilot program in the Utica Shale in Quebec. I need to remind you, we are the first mover in this play, and as a result, we are blazing the trail for development in this base.

Each of the three wells targeted a different section of the Utica and they were also in three different geographic areas. We tested our three wells after pumping four stage fracs on each one. Our rates achieved were between 100 Mcf per day and 800 Mcf per day without full recovery of the load water from the fracs.

The Utica like old shale will have an evolution of technique to become fully commercial. We've seen this in the Barnett and the Haynesville with earlier results being encouraging, but not nearly as good as they are today.

August 2009 Update:  Well, we have ten year leases up there, what we are doing there is we took all the rocks and the data, and did a frac rock mechanics work including with BJ in Houston and that was supposed to come out this summer and of course summer time is better than when we frac those wells.

Up to this point, we were the only company who had done horizontals, and I understand there have been two announcements publicly, one private firm in Cavalry, where we’ll have interest in I believe J.C. and then also Talisman has announced several horizontals, so we’d be interested in seeing how those come out on the drilling and the completion. Although, others have had trouble on the drilling, we have not. It would be the completion and basically what we are talking is about redoing it on the frac jobs and trying it again.

- Talisman Energy TLM -  Talisman Energy is very active in the Utica Shale Natural Gas Field -Talisman’s Quebec acreage is along the St. Lawrence River where the Company has currently earned or acquired a total of 310,000 net acres. The Company also has rights to earn up to an additional 460,000 net acres. In 2008, one well was drilled and another was drilling over year end. Initial tests from the Gentilly recompletion were also conducted. Talisman expects to complete the drilling component of its earning phase (two additional wells) by the end of the first quarter of 2009. The Company anticipates that testing will continue into the second and third quarters of 2009 depending on equipment availability. Talisman will continue evaluating the potential for commercial gas in Quebec throughout 2009.

- Equitable Resources EQT -  EQT has Utica Shale deposit exposure: CEO:  The second well at this point is a vertical into the Utica, that's where we're headed, we’ll frac and complete both of those wells. So, one will be horizontal, one will be vertical. See how it goes and produce them. If they work, we'll produce them into the pipeline at that point. Beyond that though if the Utica doesn't work we’ll just back off inside of that current vertical well and then drill out a horizontal Marcellus well through that same exact hole, that's one of the reasons we did this year as we sort of get a relatively cheap look at the Utica with this well. But if Utica works, we will produce. If it doesn't work we'll back off and drill on horizontal Marcellus. If the Utica does work, we'll go ahead and drill on the third well here. The third well will be a horizontal Marcellus well. Hope that clears that up.  Update:  We're still in that process of engineering, a bigger frac job in the Utica Shale. We're thinking about drilling another well but we don't know whether in the context of the market conditions whether we are going to do that sooner or later and when we drill later, if we drill, we liked it, frac both at the same time. So we're sort of on a little bit of hold on the Utica at this point.

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Gastem  GTMIF.PK -  Gastem has a join venture with Utica Energy to drill in the Utica Shale.  Gastem will earn a 65% interest in the properties and Utica Energy will earn 35% of the 29,000 acres they have.
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Questerre Energy  QTEVF.PK -  Questerre Energy has been drilling in the Utica Shale:  Questerre Energy is pleased to announce that Talisman Energy Canada has elected to drill the remaining three option wells under its farm-in agreement with Questerre and its minority partner in the St. Lawrence Lowlands, Quebec.  The three wells will complete the work program allowing Talisman to earn about a 75% interest in the original 719,000 acre farm-out block. Questerre also retains about a 4¼% gross overriding royalty on production from Talisman.  Our joint land lies right in the heart of the Lowlands between the Yamaska growth fault and Logan’s Line and runs from Quebec City to south of Lac Saint Pierre. We continue to believe this land position proximate to the market has significant natural gas potential.  The three-well program is expected to commence in the latter half of 2008. The wells will test multiple horizons including the Trenton Black-River and the Utica and Lorraine shale sequences.
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Range Resources RRCIn addition to pursuing the Marcellus Shale we’ve also initiated studies on the Utica Shale, Berquette, Genesse and Limestreet Shales. In terms of the Utica, we’ve actually been studying the Utica for a long time regarding to the Marcellus in 2004. I would imagine sometime next year we’ll probably drill our first Utica well. 

Range Resources Utica Shale 2009 Update: We also plan to drill a Utica Shale horizontal and a shallow upper Devonian horizontal before year-end.  Results of these two wells should be available by early first quarter.

Greencastle Resources ( TSX: VGN ) - Greencastle is active in the Utica Shale -  Greencastle applied for an oil and gas exploration permit in the St. Lawrence Lowlands of Quebec. The permit covers approximately 6,000 hectares in the Longueil area, east of Montreal, to the southwest along the trend from the recent gas discovery in the Utica shale by Forest Oil FST.

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