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Rex Energy 1Q15 Update: 6 New Wells Online in Butler County

The first quarter of 2015 hasn’t quite come to an end just yet (that happens on March 31)–but it’s not stopping Rex Energy from issuing a first quarter operational update. Rex, headquartered in State College, PA, is mainly focused on drilling in the Marcellus/Utica–in Butler County, PA and Carroll County, OH. According to Monday’s update, Rex placed six more wells (on two pads) in Butler County into sales during 1Q15. Because of problems with a Blue Racer compressor station, Rex reports production in Carroll County was constrained in 1Q15–but they’re quick to add those problems are over and the gas is now flowing again. Here’s yesterday’s update…
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EVEP Selling More Ohio Utica Acreage in 2015

When you’ve been writing about the Marcellus and Utica since 2009, you notice some stories that just keep repeating–year after year. EV Energy Partners selling (more of) their Utica acreage is one of those stories. EVEP is still one of, if not the, largest acreage holder in the Ohio Utica Shale. The company is a master limited partnership, or “MLP”, which means it’s organized to distribute all profits to shareholders (or unit holders) instead of plowing profits back into investments and large projects. MLPs don’t make good exploration and production companies. The way MLPs are structured makes them more suited for mature, already-drilled wells and businesses like pipelines. They want less risk and more long-term revenue potential. So it’s no surprise that EVEP has, since 2012, tried to sell large swaths of their massive holdings (see EnerVest Puts 539,000 Utica Shale Acres on Auction Block). Over time they’ve sold some of that acreage, but they still hold hundreds of thousands of acres. On an analyst phone call Monday, EVEP President & CEO Mark Houser once again said “next year” the company will sell more Utica acreage. How much acreage, and where?…
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Shale Saves the Family Farm in Carroll County, OH

Here’s a happy story that gets repeated again and again across the northeast: Shale drilling has saved the family farm. This particular story comes from the Utica Shale in Carroll County, OH where a farmer received an initial offer of $100 per acre–an offer that eventually went to $3,500 per acre signing bonus and 20% royalties. It was, according to the farmer, a fairy tale come true. Indeed, for a 233-acre farm, you do the math…
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Carroll County, OH to Get 2 New Utica-Powered Electric Plants

Two different companies are planning to build electric generation plants that use Utica Shale as their source fuel in Carroll County, OH. Advanced Power Services will build a 700-megawatt plant and Terra-Gen Power plans a 600-megawatt plant. Together, both plants will inject $1.7 billion into the local economy when they are constructed…
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UEO Midstream Processing Plant in Carroll County Online Soon

The Utica East Ohio Midstream natural gas processing plant in Leesville (Carroll County), OH, will be, according to county officials, operational within the next couple of weeks. When it comes online, the plant will process 200 million cubic feet per day of Utica Shale natural gas…
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UC Hints Air Problems Near Drill Sites in Carroll County Research

In December MDN told you about a new air quality study in Carroll County, OH, being researched by the University of Cincinnati and Oregon State University. The study will measure air quality for pollution potentially caused by local Utica Shale drilling. A good concept and worthy of everyone’s support. The only problem we had/have is that some of the volunteers helping with the project are from a local anti-drilling group (see Carroll County Anti-Drillers Eager to Help with Air Quality Study). The full results are not yet in, but preliminary results (UC won’t release any specifics), according to the AP, say that air pollution near some well sites is “higher than those in downtown Chicago”…
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Rex Energy: Utica Wells Pump Liquids; New Rig in PA; LOC +$100M

Rex Energy yesterday issued an interim third quarter 2014 update on results for their recently drilled and completed Utica Shale wells in Ohio, and on operations in Butler County, PA. Rex’s OH Utica wells coming online in Carroll County, OH showed low daily output for methane–2.1 million cubic feet per day–but more than made up for it with big output for condensate (“natural gasoline”) and natural gas liquids: one set of Rex’s Utica wells averaged 454 barrels per day of condensate and 433 barrels per day of NGLs. Rex also announced they are adding a third drilling rig in their Butler, PA area starting in early 2015 after picking up 208,000 acres from Shell (see Rex Energy Takes Shell to the Cleaners – Picks up 208K Acres). And, the company got a $100 million increase in their line of credit…
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Is There a Link Between Fracking & STDs in Ohio?

Does fracking cause sexually transmitted diseases (STDs)? It may sound like the beginning of a laugh line, but dedicated anti-drillers are deadly serious about trying to link an influx of “foreigners” (as OH Gov. John Kasich calls them) from other states into Ohio counties with shale drilling and a rise in STD rates in those counties. The theory goes that as these traveling workers arrive–something akin to carnival workers in anti-drilling lore–they bring with them STDs and they sleep around–a lot (according to the mythology). And they spread their nasty diseases everywhere they go. Reporters feed these myths with careless references to places like Carroll County, OH having a “spike” in STDs. Just one problem–when you dig into the evidence, it doesn’t back up the claim…
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Rex Energy Begins Selling Ethane; New Wells Go Online in June

Rex Energy, the “little driller that could” and indeed “is” doing a marvelous job in the Marcellus Shale, issued an important update yesterday. Rex reports they began ethane sales on June 11–which was a little bit delayed from what they had expected. But better late than never. Rex projects selling 2,000-3,000 barrels per day of ethane until mid-July at which point more sources will come online. Once all cylinders are firing, the company expects to sell 5,000 barrels of ethane per day. In addition to the good ethane news, Rex recently brought a number of new Marcellus Shale wells online and expects to keep up a brisk pace this year…
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Anti Groups Seek to Help Those with Utica Drilling Grievances

Live in Ohio and feel like those big, nasty, greedy shale drillers have screwed you out of your version of the American dream? Feel like rent on your dumpy apartment is sky high because of an influx of “foreigners” (from Texas and Oklahoma) snapping up apartments, driving up prices? Did you sign a lease a year or two too early and found out if you’d waited, you could have gotten 10x what you got? The communistic-sounding Ohio Organizing Collaborative (OOC) and the Communities United for Responsible Energy (CURE) have a so-called town hall meeting just for you, on Thursday, July 10 in Carrollton, OH…
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NatGas-Fired Electric Generating Plant OK’d for Carroll County OH

A new 742 megawatt natural gas fired combined cycle electrical generating plant for Carroll County, OH has just been given the green light by the Ohio Power Siting Board. The new plant will cost $800 million to build, with 500 construction-related jobs during the building phase. Once complete, the plant will employ 25-30 full-time workers and provide enough electricity to power 700,000 homes.

The green light announcement, which is the final hurdle before construction can begin:
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New Research Project Samples Water Wells in E Ohio Near Fracking

Researchers at the University of Cincinnati are looking for homeowners with private wells willing to have their wells sampled as part of ongoing research into the effects (or lack thereof) from nearby fracking. The idea is to do some real science for a change–that is, to take samples before drilling begins and then again during and after–to see if shale drilling has an effect on ground water supplies. What a brilliant concept! Real, in the field research and done before, during and after. Sharp folks at UC.

Here’s the details from the UC on what they play to do, and how to contact them if you live in Carroll, Columbiana, Harrison, Belmont, Noble, or Guernsey counties in Ohio…
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Rex Energy Releases #s for 3 Utica Wells in Carroll County, OH

Even though the “sweet spot” of the Utica Shale has moved from northern to southern Ohio (eastern portion of the state), that doesn’t mean Carroll County in the northern part of the play–the original “sweet spot”–is going away any time soon. Rex Energy released production numbers yesterday for their three-well Ocel pad, located in Carroll County. All three wells on the pad are producing natural gas (methane), natural gas liquids (NGLs) and condensate (natural gasoline). The production numbers for the three wells are very respectable…
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Stark County Still Sitting Pretty in the Utica, Even Without Drilling

Stark County, OH has gone through dramatic changes in a short period of time. Just a few years ago Utica Shale drilling near Stark County was hot with Chesapeake Energy leading the charge in places like neighboring Carroll County. Stark (and its largest city, Canton) were the beneficiaries of all that drilling in the northern part of the Utica play. Today? The “sweet spot” of Utica drilling has moved south, and yesterday’s hot areas like Stark and Carroll are today’s cold areas. Or are they?

Although drilling in Stark never really took off and although drilling in nearby Carroll is starting to decrease, that doesn’t mean Stark is not benefiting, in a big way, from Utica drilling. David Kaminski, the Canton Regional Chamber of Commerce’s director of energy and public affairs, said Stark County is still sitting pretty with respect to the Utica…
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Company Targets OH Landowners – Buy Future Royalties for Cash Now

Gateway Royalty is back and has $58.5 million on the bank they can’t wait to give landowners in the Ohio Utica Shale in return for future royalty payments. MDN told you about Gateway last summer. They were the company that the town of Carrollton, OH sold 1/4 of their royalty rights to (see OH Town Votes to Give Up 1/4 Royalties for Cash Payment Now). The way it works, in brief: Gateway pays landowners a lump sum now in return for the right to receive that landowner’s future royalty payments for years to come. You (the landowner) get your money now, they (Gateway) get the money you would have gotten dribbled out over time. Of course the money you receive now is discounted and in all likelihood far less than you would have gotten if you had waited just a few years (the bulk of royalty payments come in the first four years). It’s a bit of a gamble by both parties because no one really knows how much a well will produce.

Still, there are reasons why someone may want to get cash up front–pay off debt, ill health, etc. So in that vein, we bring you the latest press release from Gateway announcing they are ready, willing and waiting to give Ohio Utica Shale landowners money now. Specifically they are targeting landowners in Washington, Noble, Guernsey, Monroe, Belmont, Harrison, Carroll and Columbiana counties…
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