Another Impressive Utica Well Pops Up…in Pennsylvania!

whisperingTioga County, PA is getting a reputation. No, not THAT kind of reputation silly! Tioga County, PA is getting a reputation for impressive Utica Shale wells. Last September MDN told you that Shell had drilled a pair of Utica wells in Tioga County (see Shell Drills 2 Successful Utica Wells in NEPA Marcellusland). Shell’s “Gee” Utica well produced a respectable 11.2 million cubic feet of natural gas per day (Mmcf/d). However, their “Neal” Utica well had an initial production rate of 26.5 Mmcf/d–a top-tier well. The current reigning champ for Utica wells is Range Resources’ Claysville Sportsman’s Club No. 1 well in Washington County, PA which initially produced a mind-blowing 59 Mmcf/d (see Range Resources Drills Highest-Ever Initial Producing Utica Well). Back to Tioga County. Yesterday Seneca Resources, a division of National Fuel Gas, reported drilling a Utica well in Tioga with an initial production rate of 22.7 Mmcf/d. VERY respectable–placing it in the top tier of Utica wells. Oh! And the well is located on PA state-owned land. Isn’t this news delicious–coming after Gov. Tom Wolf has signed an executive order preventing any new leasing of state-owned land…
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NY Town Hopes to Attract Drillers Using Low Volume Fracking

A story about fracking in New York first caught our eye because it’s one of the only (perhaps the only) mainstream media story to admit that fracking has been and still is happening in New York State. If you’ve read MDN for any length of time you know we’ve been pointing that out until we’re blue in the face. Let us say it again: Fracking using low volumes of water (under 75,000 gallons) has been and continues to be used in New York State. Mainstream media outlets apparently have a news blackout on that score–which leads anti-drillers to believe there is no fracking in NY and that Cuomo’s recent decision will keep it that way. Sorry Charlie (and Bill, and Sandra, and Chip)…that’s just not the truth. Once we read more, it was apparent that the bigger story (the story within the story) is what’s happening in the Town of Windsor, NY–where MDN HQ is located, where the temperature this morning was 0! Windsor is actively looking at the possibility of attracting drillers who may want to use low-volume fracking, or even no fracking, to drill gas wells in the town…
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Big News: 3 More Marcellus-Powered Electric Plants Coming to WV

big newsThree weeks ago MDN reported a Buffalo, NY-based company had successfully gotten all necessary permits to move forward with building a $615 million, 549 megawatt electrical generating plant near Moundsville, WV that will be powered by Marcellus Shale gas (see Marshall Co Gas-Powered Electric Plant Gets WV Green Light). Then we told you the plant will burn not only methane (natgas), but also up to 25% of the mix will be ethane (see WV Moundsville Electric Generating Plant to Burn Methane + Ethane!). Looks like the Moundsville project was the proverbial canary down the WV coal mine–and it lived! In the past few days the father and son team behind the Moundsville project have announced three (yes 3!) more just like it–all in WV. Why is this a big hairy deal? The Moundsville plant was already slated to be WV’s single largest user/consumer of natural gas. Just think how much gas will be used quadrupling that number…
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Kinder Morgan Fails to Sign Up New NED Customers in Last 8 Mos

Yesterday Kinder Morgan announced they have contracts in hand for “anchor” shippers to use 500,000 dekatherms of capacity on the proposed new Northeast Energy Direct (NED) Project. NED, you may recall, is the project that will extend the Tennessee Gas Pipeline from New York through Massachusetts into New Hampshire and back into Massachusetts delivering much-needed natural gas to New England (see Kinder Morgan Changes Route for Pipeline from MA to NH). The project is bitterly opposed by small pockets of anti-drillers–particularly in Deerfield, MA where they’ve illegally attempted to ban it (see Deerfield, MA Hoping Kinder Morgan Sues Them over Pipeline “Ban”). The interesting thing about yesterday’s announcement from Kinder Morgan is that there’s really nothing new in it! Other than the fact that they now have the officially signed agreements in hand. MDN brought you the same news about the same shippers signing up in the original open season last August (see Kinder Signs up New Customers for MA Pipeline, 63% of Capacity). Kinder continues, according to the announcement yesterday, to try and sign up more shippers. So the real news–for us–is that since August, Kinder hasn’t signed up any other new shippers, even though they’ve been trying to…
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Eclipse Resources has “Transformative” 2014, Cutting Back in 2015

Eclipse Resources released their full year and fourth quarter 2014 update on Wednesday. Eclipse is a small but rapidly growing driller headquartered in State College, PA but doing most of its drilling in eastern Ohio. The company reports last year they drilled 57 gross (41 net) operated wells, completed 36 gross (27 net) operated wells and placed 28 gross (22 net) operated wells into sales. The vast majority of wells they’ve drilled are condensate producers. Last year was, as CEO Ben Hulburt said, a transformative year for the company. They went from producing an average 4.5 million cubic feet equivalent per day (Mmcfe/d) in 2013 to producing 73.5 Mmcfe/d in 2014. The company spent $809 million last year–but this year they’re whacking that, perhaps in half. In December they planned to spend $640 million in 2015, down 38% from last year. On Wednesday they didn’t put a number to it, but Eclipse said they were lowering it even more. Ouch. Here’s the low down on what happened in 2014, and what Eclipse has planned for 2015…
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Eclipse Resources March Analyst Phone Call + Slides

It doesn’t happen often (with other companies), but yesterday on an analyst/investor phone call, Eclipse Resources top management, including CEO Ben Hulburt, EVP/COO Tom Liberatore and EVP/CFO Matt DeNezza conducted a well-organized dog and pony show (and we say that affectionately) by talking through the company’s latest PowerPoint presentation. Slide by slide they give us the rundown. So we thought we would bring you a transcript of their explanations, along with a copy of the slide deck so you can look at the slides and read through their comments. Eclipse, drilling in the Marcellus/Utica of eastern Ohio, is a smart operator and a company to keep an eye on. It was founded by several top people who left Rex Energy, another small company we like…
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Antero Says Super Size Me – Floats 13.1M Shares of New Stock

super size meAntero Resources, one of the largest drillers in the Marcellus/Utica, wants cash and they want it bad. Two days ago we told you that Antero is in the market floating IOUs (or “notes”) looking to raise a huge $1.25 billion (see Antero Shops for $1.25B Cash from IOUs, Wants to Pay Down Old Debt). Just two days later the company put out a pair of press releases announcing a new stock offering too. At first they issued a press release saying they will float 11.5 million shares of new stock. A few hours later they issued another press release saying they are “upsizing” the offering to 13.1 million shares. Apparently McDonald’s meals aren’t the only thing that can get super sized (ba dop bop). Antero hopes to raise $485 million with this latest round. If everything happens as desired, they’ll haul in $1.25 billion from debt financing, and $485 million from equity financing, for a total of $1,735,000,000…
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PA Rep. Vitali Wants to Force Residents to Use LESS Natgas

Some days you just shake your head. With all due respect to our many Democrat readers and friends–how can some Democrats be so utterly stupid? The latest example comes from Pennsylvania. State Rep. Greg Vitali (Democrat from the Philly area, why are we not surprised) wants to force natural gas utilities–the folks who sell you gas to burn in your furnace or use in your stoves for cooking–to sell you less natural gas. Why? Because of his personal views about so-called global warming. His justification (picked up and amplified by the dictationists at the Pittsburgh Post-Gazette) is that electric utilities are already being forced to do it–and hey, Dems like to spread the misery around, ya know?…
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