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Antero Resources 1Q15: Production up Big 89% Over 2014

Antero Resources, one of the largest Marcellus/Utica drillers, continues to impress. Antero released first quarter 2015 numbers yesterday and they show an 89% increase in production over the same period last year, and a 17% increase in production over fourth quarter of 2014. Antero completed 41 Marcellus wells in 1Q15 and hooked 30 of them up to production. For those wells online for 30 or more days, they averaged 13 million cubic feet per day equivalent of natural gas. Antero currently operates 7 rigs and 2 completion crews in the Marcellus. The company reports not doing much in the way of drilling/completions in the Utica during 1Q15 mostly because they are transitioning to 7-pad units. They plan to drill another 45 Utica wells by the end of this year…
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Magnum Hunter Natgas Production Up 66% in 1Q15

Magnum Hunter Resources, now a pure play company focusing on the Marcellus/Utica region, released first quarter production results yesterday and they look impressive. Natural gas (and equivalents) was up 66% for first quarter 2015 over the same period in 2014. The question is, however, how much longer will Magnum Hunter be able to continue pulling a rabbit out of the hat? In 2014 the company drilled 53 wells. This year they plan to drill 5 because of the low price of natgas (and lack of funds). It will be interesting to watch as the year progresses. In the meantime, let’s celebrate this nice increase in 1Q15!…
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GreenHunter Releases 2014 Update, Plans to Barge Brine in 2015

GreenHunter Resources, the fresh water and wastewater subsidiary of Magnum Hunter Resources, reported their fiscal year 2014 and 2014 operating results yesterday–in both a press release (below) and an analyst phone call (excerpts below). MDN eagerly scoured the announcement and a transcript of the analyst call for mention of the ongoing controversy of barging brine down the Ohio River. GreenHunter is building and has nearly completed four new injection wells in Meigs County, OH. They plan to begin barging brine to those wells sometime this year, according to GreenHunter COO Kirk Trosclair. GreenHunter has a major/ongoing disagreement with the U.S. Coast Guard (USCG) over whether or not guidelines issued in 1987 allow them to transport brine from shale wells (see GreenHunter Keeps Pressure on USCG to Barge Brine on Ohio River). While there’s no mention of the USCG or lack of a USCG permit, there was plenty of talk about barge operations beginning by the end of this year…
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EMG Stabs McClendon in the Back re Chesapeake Data Lawsuit

backstabberThis is a strange and complicated tale that boils down to this: Aubrey McClendon has a singular talent for finding and taking money from people who later turn around and stick a knife in his back. You may remember in February the story we brought you that Chesapeake Energy had sued its former co-founder, Aubrey McClendon, claiming he stole data on his way out the door (see Chesapeake Energy Sues McClendon for Taking His Rolodex with Him). McClendon responded that he contractually had every right to take the data he took with him (see McClendon Hires Top PR Firm to Respond to “Stolen Data” Charge). This is where it gets complicated. Aubrey has spun off several companies from his new company American Energy Partners (AEP). For example, one of the companies (named in the Chesapeake lawsuit) is American Energy-Utica, LLC, (AEU), operating in Ohio’s Utica Shale region. A major funding partner for AEU is Energy & Minerals Group (EMG). EMG is, essentially, in charge of AEU. EMG has just cut a deal with Chesapeake, behind Aubrey’s back, to give Chesapeake 6,000 acres of leases in northern Harrison County along with $25 million in extortion, er ah hush money, er ah “damages” thereby removing EMG/AEU from the Chesapeake lawsuit. The lawsuit against Aubrey and mother company AEP will continue–but the child company/EMG investors won’t be part of it. Aubrey is hopping mad because EMG didn’t tell him nor seek his blessing on their deal with Chesapeake…
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Eclipse Resources Nixes Joint Venture Idea, Cuts Capex 57% in 2015

Eclipse Resources is a relatively new driller formed by a group of former Rex Energy people. Eclipse is headquartered in State College, PA but does most of its drilling in the Ohio Utica. Eclipse announced yesterday they have decided not to pursue a joint venture after all. As recent as a month ago, Eclipse was saying, “…the Company is currently in negotiations with certain financial partners regarding a potential joint venture to accelerate drilling on its assets without burdening the Company’s balance sheet” (see Eclipse Resources has “Transformative” 2014, Cutting Back in 2015). Eclipse previously announced a cutback in their 2015 budget of 20% over 2014 spending levels (see Eclipse Resources Gets $440M from New Stock, Trims 2015 Capex 20%). Because they’ve decided not to do a jv, Eclipse is now cutting back this year’s budget by 57% over 2014. They will now drill just 19 new wells this year and place 29 wells into production…
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Democrat County Judge Rules PA AG’s Case Against XTO Can Proceed

Not long after she took office, Pennsylvania’s Democrat Attorney General, Kathleen Kane, brought criminal charges against XTO Energy for an accidental spill in Lycoming County, PA that happened two years before she was in office (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO). Yes, this is the same Kathleen Kane who may be forcibly removed from office because she lied under oath, a little criminal offense called perjury (see PA Grand Jury Finds Anti-Drilling AG Kathleen Kane Lied Under Oath). Meanwhile, Kane continues her reign of terror against XTO and others (see Minuteman Enviro Says PA AG Office “Terrorized” Family Members, Filing Lawsuit and PA Attorney Gen. Kane Abuses Office Again, Arrest Warrant for EQT). The latest on the XTO sham case is that Democrat Lycoming County Judge Marc Lovecchio has (surprise!) refused to dismiss the charges against XTO…
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Cabot Drills Test Well in WV Rogersville Shale, More on the Way?

A fascinating story in Sunday’s Charleston Gazette shines a light on the Rogersville Shale formation in southwestern West Virginia and eastern Kentucky. We’ve mentioned the Rogersville a few times on MDN–a shale layer that is older and much deeper than the Marcellus. The Marcellus is about a mile down. The Rogersville is between 9,000-14,000 feet down, or 2-3 times the depth of the Marcellus. Until now we’ve heard about potential Rogersville activity in Kentucky (see Fracking on the Way in the Bluegrass State? Quite Possibly and Kentucky Fracking One Step Closer: Commission Considers 1st Permit). Two exploratory wells have already been drilled in the Rogersville in Kentucky. But the new news, the thing that interests us, is that Cabot Oil & Gas has now drilled a test well in the Rogersville in West Virginia…

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Zombie Alert! Hilcorp Wants to Drill Under OH Cemetery

zombiesThis is truly brazen. We’ve previously written about callous drillers like Hess who drilled next door to a cemetery (see Hess Has Gall to Drill Utica Well Next Door to a Cemetery in OH). We mean, the gall! But never in our wildest dreams did we think somebody would drill UNDER a cemetery. You know, where the souls of the dead roam around? Yes indeed. Hilcorp Energy has asked Fairfield Township Trustees (in Columbiana County, OH) to sign a lease for a quarter of an acre of cemetery property. Signing bonus would be $500 along with a 15% royalty on anything produced. Bring on the zombies!…
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Belmont County, OH Landowners Spread the Wealth Around

One of the early slanders MDN heard against drilling is the typical class warfare argument. Some citizens (landowners and drillers) are winners of the “drilling lottery” and everyone else around them suffers with all of the negatives and none of the po$itive$. We call it the Beverley Hillbillies argument–rich, white, liberals who can’t stand the fact that flat-busted farmers have come into some money. They’re jealous. It’s a bigoted and repugnant argument we’ve heard made by people like a certain Cornell professor (see Everyone Wins – Not Just Landowners – When Marcellus Drilling Happens in a Community). The image they portray is that the people who make money from drilling–landowners and drillers–are money-grubbing misers. Ebeneezer Scrooge counting his piles of gold coins. The only problem with that image is, it’s not true. As you might expect, salt-of-the-earth farmers DON’T just hoard the money–they share it. Like a group of landowners (along with Rice Energy) in Belmont County who have donated, so far, $170,000 to a fund that benefits local community groups–like fire departments and food banks. Their goal is to see the fund swell to $10 million–all of it benefiting local groups and charities. Whoops! There goes another lie peddled by anti-drillers that’s been completely deflated…
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CONSOL Energy Lays Off Workers in CNX Gas Division in WV/PA

breaking-news.jpgUPDATE 4PM 4/10/15: A highly placed source tells MDN that the number of total layoffs in the gas division is 170, many of which happened today. The total number is just shy of 5% of CONSOL’s total workforce. Our thoughts and prayers go to those affected.

It’s not often that MDN gets to break news–but from scouring available news sources, we believe this is one of those times. Yesterday a long-time MDN reader phoned MDN to report that CONSOL Energy has begun, and is in the process of, a large round of layoffs in its CNX Gas division. The layoffs include personnel cuts in the following CONSOL locations: In WV there have been cuts in the Jane Lew and Bluefield offices; and in PA, cuts have been made (or will be made) in the Waynesburg, Indiana, and Canonsburg offices. We must stress this is second-hand information. We believe our source, but we do not have confirmation of cuts in all of those locations. Our source told us he had once worked in the Jane Lew office when that operation was part of Dominion (prior to CONSOL taking it over) and that someone he once worked with in that office–a woman who’s worked in that office/operation for 28 years–was just given her pink slip. So our source has an inside track on the situation. However, it’s always best to get confirmation, so MDN contacted CONSOL via email to ask for confirmation (or denial) and this is what CONSOL said…
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Trans Energy Sells 5,159 Acres/12 Wells in Wetzel County for $71.3M

UPDATE 4/11/15: We now know the identity of the company doing the buying. See our note at the end of the article.

Trans Energy, a small but active “pure play” Marcellus driller in West Virginia, announced it has signed a deal with an unnamed buyer for one-third of their remaining Marcellus acreage, located in Wetzel County, WV. The deal is for 5,159 net acres and twelve producing Marcellus wells. Sale price? $71.3 million. This deal means that Trans Energy will no longer have active operations or leases in Wetzel County. They will continue to have active operations and leases in Marshall and Marion counties. This is not the first time Trans Energy has sold some of their WV acreage to an unnamed buyer. They sold 1,163 acres and two well pads with an unfinished well in Tyler County in October 2013 (see Trans Energy Sells Off Holdings in Tyler County, WV – Who Bought?). As in 2013, the buyer for the Wetzel acreage is not named, but MDN has a guess about who it may be…
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LNG Love Story: Shell Makes Play to Buy BG in $69.7B Megamerger

Love StoryIt’s an LNG love story. Yesterday Shell announced they are buying BG Group, the former British Gas, for $69.7 billion dollars. To put it in perspective, in 1998 Exxon bought Mobil for $80 billion, forming what is now ExxonMobil. So this is that kind of scale–really really huge. The oil and gas industry is buzzing about the deal. Is this the first of many such consolidations, given the low price of oil? Will the Shell/BG deal impact shale drilling? What does it ultimately mean? We’ll leave it to others to discuss the broader implications. What we always wonder is, how will this affect the Marcellus/Utica? We have a few thoughts. Both Shell and BG have acreage in the Marcellus/Utica. But before we get to that, the first thing to understand about the Shell/BG deal is that it’s about LNG. This merger will make Shell the largest player in the global LNG market–easily twice the size of the nearest competitor…
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Carrizo CEO Sells 6K Shares of Stock for $307K

Chip Johnson, CEO of Carizzo Oil & Gas, an active driller in both the Marcellus and Utica Shale, has just sold 6,000 shares of company stock that he owns, netting him a cool $307,380. Does it mean anything? Not really. After selling those 6,000 shares, he still owns 608,356 shares worth $31 million. So we think about all it means is that Chip and his family are planning a summer vacation…
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CONSOL Energy Becomes 3rd Driller to Receive CSSD Certification

And then there were three. The Center for Sustainable Shale Development (CSSD) has been fighting some pretty stiff headwinds. The organization was founded by a group of shale industry people and environmentalists reaching across the isle to forge strict standards that both sides can live with. Environmental leftists, like Mamma Teresa Heinz Kerry and her Heniz Endowments, pulled support and have actively worked against the CSSD (see She Speaks! Teresa Heinz Kerry Talks re Endowments Firings, CSSD). Other so-called environmental groups like the William Penn Foundation also bailed. But new supporters stepped into the breach to take their shoes (see CSSD Thrown a Lifeline from Richard King Mellon Foundation). On the industry side, not all that many stepped up to receive the CSSD’s thorough examination. The first to do so was Chevron. The second, not along ago, was Shell. And now CONSOL Energy has become the third Marcellus driller to apply for and receive CSSD certification. All three were part of the original working group that formed the CSSD–it’s good to see they’re setting an example…
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Barnesville Officials “Didn’t Think” When Signing Gulfport Water Deal

A few weeks ago MDN told you about a legal battle shaping up in Belmont County. Gulfport Energy has sued the town of Barnesville over a contract dispute (see Gulfport Energy Sues Barnesville, OH for Access to Water in Reservoir). Barnesville signed a contract with Gulfport to sell them water for drilling and fracking from the Slope Creek Reservoir–for 1 penny per gallon. Then Barnesville signed a contract with Antero Resources to lease land, and of course Antero needs water too (and apparently went to the head of the water line). Barnesville now says the reservoir has been drawn down too low to sell water to Gulfport (other drillers dipping in the reservoir?) so Barnesville wants to renege on the contract and now finds themselves in federal court. Now the 4,100 residents of Barnesville will pay out the nose for outside legal council to defend the town because of their leaders “didn’t think”…
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