Hilcorp, NiSource Join Forces to Develop Utica Shale

Figure 4a: The cross-section above shows the subsurface position of the Marcellus Shale, Utica Shale and the continental basement rock. The line of cross section is shown as line A-B on the inset map. Note that the Utica Shale is about 2000 feet below the Marcellus under eastern Ohio but about 6000 feet below the Marcellus in southcentral Pennsylvania. Also note that the Marcellus Shale potential source rock does not extend as far into Ohio as the Utica.

This cross-section was compiled by Geology.com using data provided by the Energy Information Administration [1], the United States Geological Survey [2], the Pennsylvania Geological Survey [3], and the U.S. Department of Energy [4].
Downtown Houston's Hilcorp Energy Company is entering a joint venture with NiSource to develop natural gas production in Pennsylvania and Ohio.

The joint venture, known as Pennant Midstream, will combine Hilcorp and NiSource’s leaseholds in the Utica/Point Pleasant Shale formation of northeast Ohio and western Pennsylvania. Hilcorp will serve as the operator and manage the development of the combined acreage.

Pennant will build new gathering pipeline infrastructure, as well as processing facilities for natural gas liquids, to support the region’s production. The initial processing plant is set to be delivered by the end of July. The gathering system, as well as the finished processing complex, are expected to enter service by September of next year.

Hilcorp is one of the largest privately owned independent oil and natural gas companies in the country. It has over a thousand employees in eleven operating areas, stretching from the Gulf of Mexico to Alaska’s Cook Inlet.

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Andrew Schneider

Business Reporter

Andrew Schneider joined KUHF in January 2011, after more than a decade as a print reporter for The Kiplinger Letter...