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4 New Shale Well Permits Issued for PA-OH-WV Mar 25 – 31

What’s below dismal? The new permits report for two weeks ago showed just five new permits, which we called “dismal” (see 5 New Shale Well Permits Issued for PA-OH-WV Mar 18 – 24). Last week, for March 25 – 31, there were just four new permits issued. Technically, there were only two new permits (both in Pennsylvania), but Ohio’s Dept. of Natural Resources was tardy in their update and recorded two new permits last week for permits issued the week before. We didn’t report them two weeks ago, so we will report them this week. In PA, there was one new permit each issued to Snyder Brothers (Armstrong County) and Greylock Energy (Potter County). OH issued two permits to Ascent Resources (both in Guernsey County). West Virginia issued no new permits for the second week in a row.
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OH Landowners Appeal Jury Decision Allowing Pt Pleasant Drilling

A royalty case that took nearly four years and hundreds of filings by both sides was finally decided by an Ohio jury in March (see OH Drillers Win Case Against Landowners re Drilling Deeper). The jury found in favor of several drillers (Ascent Resources, Gulfport Energy, Rice Energy) and against the rights owner (TERA II, LLC) in a case where the words “Point Pleasant” were not included in a lease agreement. The drillers drilled into the Point Pleasant, which sits on the border of the Utica, even though, technically, the lease did not allow it. The jury found the landowners did not “reserve their rights” to the Point Pleasant, given its location next to the Utica. The landowners are now appealing the jury decision.
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Ohio ODNR Update: Top 5 Producers, Injection Well Primacy & More

The Ohio Oil & Gas Association (OOGA) held its annual meeting in March at the Hilton in Columbus, OH. While MDN was not there, an industry friend sent along a copy of the slide deck used by the Ohio Dept. of Natural Resources (ODNR) Division of Oil & Gas Resources Management. The ODNR’s “regulatory update” addressed a number of interesting issues, including the state’s ongoing application for “primacy” in permitting carbon dioxide injection wells, permitting and unitization (forced pooling), updates on rule changes for drilling and fracking, and several “top 5” lists for natural gas and oil producers in the Utica Shale.
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Ohio Utica Quickly Becoming an Oil Play – “Could Go On for Decades”

Oil production in the Ohio Utica hit a record 27.8 million barrels in 2023, up 41% from 2022, according to researchers at the Levin College of Public Affairs and Education at Cleveland State University. In December, eastern Ohio oil wells pumped 93,000 barrels of crude, up one-third from December 2022, according to federal data. Oil has been locked away in the Utica/Point Pleasant shale layer for millennia. Aubrey McClendon, co-founder and former CEO of Chesapeake Energy, was the first to see the vision of freeing oil from the Utica. However, it was a successor company, Encino Energy, that figured out how to coax large quantities of oil out of the Utica shale.
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Appalachian Methane Initiative Concludes 2023 Test, Expands in 2024

In January 2023, three Marcellus/Utica companies — Chesapeake Energy, EQT, and Equitrans Midstream — launched the Appalachian Methane Initiative (AMI), a coalition committed to further enhancing methane monitoring throughout the Appalachia Basin and reducing methane emissions throughout the region (see EQT, Chessy, Equitrans Form M-U Methane Monitoring Club). The initial pilot campaign from 2023 is done, and the results are in (below). In addition, four more M-U companies are joining the original three for the 2024 campaign.
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19 New Shale Well Permits Issued for PA-OH-WV Mar 4 – 10

There were 19 new permits issued to drill in the Marcellus/Utica during the week of Mar. 4 – 10, up 2 from 17 permits issued the prior week. Pennsylvania issued 11 new permits. Ohio issued 5 new permits. And West Virginia issued 3 new permits. Range Resources and Ascent Resources tied for most new permits with 5 each. Range received 5 permits to drill in two PA counties: Lycoming and Washington. Ascent received 5 permits to drill in Belmont County, OH. Chesapeake Energy got 3 permits to drill in Bradford County, PA, and Seneca Resource also received 3 permits for Tioga County, PA. Southwestern Energy scored 2 permits for Ohio County, WV, and CNX Resources received a single permit for Marshall County, WV.
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Ascent Resources Shift in Strategy in 2024: Less Gas, More Liquids

Ascent Resources, founded as American Energy Partners by gas legend Aubrey McClendon, is a privately held company focusing 100% on the Ohio Utica Shale. Ascent, headquartered in Oklahoma City, OK, is Ohio’s largest natural gas producer and the 8th largest natural gas producer in the U.S. The company issued its fourth quarter and full-year 2023 update yesterday. The update contains a statement by CEO Jeff Fisher that says we should look for a shift in the company’s strategy in 2024 for less gas production and more liquids production.
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OH Drillers Win Case Against Landowners re Drilling Deeper

Back in the summer of 2020, MDN told you about a lawsuit brought by an Ohio rights owner called TERA, an organization that owns the royalty rights for a number of leases with wells in Belmont County, OH, drilled by different producers, suing the producers for drilling into the Point Pleasant shale layer when the lease only mentions the Utica layer (see OH Landowners Sue Rice, Ascent, XTO, Gulfport for Drilling Too Deep). The case took nearly four years and hundreds of filings by both sides, but last week, a jury found in favor of the drillers (the defendants) and against the rights owner (the plaintiffs). This case likely has far-reaching consequences for landowners and drillers in Ohio.
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20 New Shale Well Permits Issued for PA-OH-WV Jan 29 – Feb 4

There were 20 new permits issued to drill in the Marcellus/Utica during the week of Jan. 29 – Feb. 4, versus 27 permits issued during the prior week. Pennsylvania issued 12 new permits last week. Ohio issued 6 new permits. West Virginia issued 2 new permits last week. We had a tie for the company receiving the most permits. Seneca Resources received 4 permits to drill in Tioga County, PA, and Ascent Resources received 4 permits to drill in Harrison County, OH.
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NOG Closes on Deal for Ascent-Operated Utica Wells & Acreage

Last November, Northern Oil and Gas, Inc. (NOG), a company that invests in non-operated oil and gas assets (they let others do the drilling), announced a deal to enter the Utica Shale (see NOG Invests in Utica Wells, Acreage Operated by Ascent Resources). The deal includes non-operated interests in Ohio’s Jefferson, Harrison, Belmont, and Monroe counties. Yesterday, NOG said it closed on the deal and now owns those assets.
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27 New Shale Well Permits Issued for PA-OH-WV Jan 22 – 28

There were 27 new permits issued to drill in the Marcellus/Utica during the week of Jan. 22 – 28, versus 20 permits issued during the prior week. Pennsylvania issued 19 new permits last week. Ohio issued 5 new permits. West Virginia issued 3 new permits last week. Olympus Energy scored the most new permits with 7, all of them in Westmoreland County, PA. Apex Energy came in second with 6 new permits, also in Westmoreland. In fact, Westmoreland County, in southwestern PA, received 15 new permits last week, by far the most of any county.
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20 New Shale Well Permits Issued for PA-OH-WV Jan 15 – 21

There were 20 new permits issued to drill in the Marcellus/Utica during the week of Jan. 15 – 21, versus 24 permits issued during the prior week. Pennsylvania issued 11 new permits last week. Ohio issued 9 new permits. West Virginia had a big, fat zero new permits last week. Ascent Resources scored the most new permits issued, with 5 permits across two counties, Jefferson and Harrison, in Ohio. Encino Energy (EAP in the list) had the second most new permits issued with 4 permits in Harrison County, OH.
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Black Gold: Ascent & Encino Drill Oil Gushers in Ohio Utica

Yesterday we brought you the latest update on EOG Resources’ oil drilling program in the Utica Shale (see Black Gold: EOG Resources Drills Gushers in Ohio Utica). Today we have details about two more companies and their Utica oil drilling programs: Ascent Resources and Encino Energy. Last summer, we told you that Encino, which picked up Chesapeake Energy’s Ohio O&G assets, including 933,000 Ohio acres with 320,000 net Utica acres and 920 operated and non-operated Ohio Utica wells for $2 billion in 2018 (see Stop Press: Chesapeake Sells ALL of its Ohio Utica Assets for $2B), had finally cracked the code on coaxing oil from the Utica Shale (see Oil Prod. in Northern Utica Comes Alive – Encino Cracks Oil Code). Encino is now Ohio’s top oil producer.
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18 New Shale Well Permits Issued for PA-OH-WV Jan 1-7

There were 18 new permits issued to drill in the Marcellus/Utica during the first full week of 2024 (Jan. 1-7), versus 24 permits issued for the final two weeks of last year (Dec. 18-31). Pennsylvania issued 9 new permits last week. Ohio issued just 1 — which was to drill a Marcellus (not a Utica) well! West Virginia issued 8 permits. Antero Resources took the top spot last week with 7 new permits, all of them issued for drilling in Wetzel County, WV.
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24 New Shale Well Permits Issued for PA-OH-WV Dec 18 – 31

We are catching up on permits issued…for the last two weeks of December. Normally we cover permits issued for a single week. This report covers permits issued for the two weeks covering Dec. 18 – 31. Perhaps it’s a good thing we’re reporting on two weeks as Ohio’s ODNR seems to have taken the last two weeks of the year off, issuing just a single permit. There were 24 new permits issued for the final two weeks of the year, cumulatively, versus 35 permits issued for Dec. 11 – 17. Pennsylvania issued 19 new permits for the final two weeks of last year. Ohio issued just 1. And West Virginia issued 4 permits. Range Resources took the top spot with 9 permits issued in Washington County, PA.
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35 New Shale Well Permits Issued for PA-OH-WV Dec 11-17

New shale permits issued for Dec 11 – 17 in the Marcellus/Utica continued the trend up over the previous week. There were 35 new permits issued last week versus 27 issued two weeks ago. Last week’s permit tally included 17 new permits in Pennsylvania, 13 new permits in Ohio, and 5 new permits in West Virginia. The company receiving the most permits last week was Ascent Resources with 8 new permits in two different counties: Guernsey and Belmont counties in OH. Antero was second highest with 5 new permits in Ritchie and Doddridge counties in WV.
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