Rex Energy’s Partner Ponies Up Another $46M for More Marc. Wells

Rex EnergyRex Energy Corporation, one of our favorite smaller Marcellus/Utica drillers, issued an update on their Marcellus drilling program on Tuesday. You may recall that just last week Rex announced they were selling off the rest of their non-Marcellus acreage to become a pure play driller (see Rex Energy Selling Illinois Basin Assets, Focus 100% on Marcellus). In Tuesday’s update, Rex says funding partner Benefit Street Partners has decided to fund the next 12 wells in Rex’s Moraine East drilling area. Benefit’s investment is going from the current $51.6 million to $98.1 million. Here’s the update for not only the Moraine East area, but also Butler and Warrior North…
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OOGA Reviews Ohio 1Q16 Utica Production – Finds a Cloud

OOGA logoOn Monday MDN brought you the latest quarterly production numbers for the Ohio Utica Shale, direct from the Ohio Dept. of Natural Resources (see MDN Exclusive: Analysis of Ohio’s 1Q16 Shale Production). As we pointed out, year over year (comparing first quarter to first quarter 2015 and 2016) natural gas production from shale is up 80% year over year, and oil production is up 24%. However, that’s not the entire story. The Ohio Oil & Gas Association (OOGA) has done a deep dive into the numbers and finds that 1Q16 oil production in Ohio is the first time in the modern shale era that production has gone DOWN from the previous quarter by 12.3%. Here’s OOGA’s analysis of the numbers…
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Prepping a Work Force to Build & Operate the Shell Cracker

new-jobs_thumb.jpgThe coming Shell ethane cracker plant complex in Monaca (Beaver County), PA, will create a lot of jobs–some in the near-term, but many in the medium-to-longer term. The plant won’t be complete for another five years. Between now and then it will take 6,000 temporary workers to build it. Once built, the plant will take 600 permanent employees to run it. Is Beaver County and the greater Pittsburgh region ready for that kind of jobs challenge? As of today, the answer would be “no.” But leaders in the area are working on it…
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Dominion Begins Building Virginia’s Biggest NatGas Power Station

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Artist’s rendering of Greensville County Power Station – click for larger version

In March 2015, Dominion–a huge natural gas and electric utility as well as a midstream company–announced plans to build the State of Virginia’s largest natural gas powered electric generating plant, in Greensville County, VA (see Virginia’s Largest Electric Plant to be Powered by Marcellus Gas). The $1.3 billion state-of-the-art natural gas-fired electric generating station will generate 1,600 megawatts of electricity. Dominion’s own 550-mile Atlantic Coast Pipeline (when built) will provide cheap, abundant, clean-burning Marcellus/Utica Shale gas to power it. In July 2015 Dominion filed a request with the Virginia State Corporate Commission (SCC) to build it (see Dominion to Build Electric Plant in S VA Powered by Marcellus Gas). The SCC approved the project in March of this year (see Virginia Approves State’s Largest NatGas-Powered Electric Plant). On Tuesday Dominion announced they’ve begun construction…
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Update on Ultra Petroleum Bankruptcy

Ultra PetroleumUltra Petroleum, based in Houston, TX, is an independent exploration and production (E&P) company mainly focused on drilling in the Green River Basin of Wyoming. Ultra also drills for oil in the Uinta Basin/Three Rivers area in Utah. In addition, Ultra maintains a position in the Pennsylvania Marcellus shale with leases on 184,000 gross (91,000 net) acres–no small amount. They aren’t currently drilling on their Marcellus acreage, but if prices change, they likely would. That is, if they make it through bankruptcy. At the end of April Ultra filed for Chapter 11 bankruptcy (see Ultra Petroleum (with 184K Marcellus Acres) Files for Bankruptcy). Some shareholders are trying to get an official equity committee approved to protect their interest. Will they succeed? Here’s the latest on the Ultra bankruptcy as it progresses…
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PA Budget Progress – But Wolf Still Insists on Severance Tax

out outLast year Pennsylvania Gov. Tom Wolf thought he could win in a game of “chicken” with Republican majorities in both the PA House and Senate. Wolf tried to ram down their throats a number of tax increases–including a raise in the personal income tax, sales tax, cigarette tax, severance tax–just about any tax you can think of. Wolf lost. The budget was a disaster because he wouldn’t negotiate, wouldn’t compromise, wouldn’t do anything. He was banking on a liberal media to come to his support. In the end, even the media abandoned him as a hardheaded putz. This year Wolf is singing a different tune. He’s not demanding higher taxes and enormously bloated spending increases across the board. However, Wolf is still obstinately insisting on a Marcellus Shale severance tax–even though the industry is on the ropes and in survival mode. Just when we thought he was wising up…
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Babst Calland Regulatory Update for Drillers & Midstreamers

Babst CallandThe legal beagles of top energy law firm Babst Calland recently released their sixth annual energy industry report called, “The 2016 Babst Calland Report – An Unprecedented Time for the Oil & Gas Industry: Price Down, Supply Up, Reform Ahead; Legal and Regulatory Perspective for Producers and Midstream Operators.” This annual review of energy and natural resources development activity acknowledges the continuing evolution of this industry in the face of economic, regulatory, legal and local government challenges. In an MDN exclusive, we have the first six pages of the 68-page report (see below), along with details on how you can request a full copy. Worth the read!…
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Marcellus & Utica Shale Story Links: Thu, Jun 23, 2016

best of the restThe “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: Belmont, Monroe counties Utica hot spots; CT high school saves major money by switching to natgas; Tokyo Gas buys stake in U.S. gas field; renewables are the spoiled children of the energy family; Dallas Fed report on crude prices & a return to drilling; private equity has $1 trillion waiting to invest in o&g; and more!
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