EnCap Keeps $6B Spigot Open to Fund New Shale Drilling

EnCap Investments is a venture capital investor that funds independent companies in the U.S. oil and gas industry. EnCap has its fingers in a number of pies in the Marcellus/Utica. According to a Bloomberg article, EnCap plans to use a pile of $6 billion in cash it’s sitting on to drill new oil and natural gas wells this year. EnCap currently runs 23 drilling rigs at its various portfolio companies. Two of those companies drill in the Marcellus/Utica.
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Montage Resources to Operate Just 1 Rig in 2020

Montage Resources, which formed in a merger of Eclipse Resources and Blue Ridge Mountain Resources (formerly Magnum Hunter Resources) in March of this year, announced in July they would cut back from two to one active drilling rig in the second half of 2019 (see Montage Resources Cuts Drilling Program to 1 Rig in 2nd Half 2019). They did. Last week the company, which is totally focused on the Marcellus/Utica region, issued its third quarter update and announced they will continue to operate just one rig in 2020.
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Another 655 Acres in Ohio Wayne Natl Forest Auctioned for $1.3M

The federal Bureau of Land Management (BLM) recently announced the winners of Utica Shale mineral rights for 14 parcels of land, adding up to ~655 acres, located in Wayne National Forest (WNF). The 14 properties netted the government $1.326 million and all 14 were purchased by two (possibly more) Utica Shale drillers. Average price per acre paid across the entire lot: $2,024. Who did the leasing? You have to be a subscriber to find out. 🙂
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Montage Resources Cuts Rigs from 2 to 1, Spending $30M Less

Map showing extent of Marcellus Shale in Ohio (click for larger version)

Montage Resources, which formed in a merger of Eclipse Resources and Blue Ridge Mountain Resources (formerly Magnum Hunter Resources) in March of this year, issued their second quarter update yesterday–the first full quarter for the newly merged entity. The company released an operational update several weeks ago to announce they are cutting back from two to one active drilling rig in the second half of 2019 (see Montage Resources Cuts Drilling Program to 1 Rig in 2nd Half 2019), which they reiterated in yesterday’s update.
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Ohio Issues First Permits to Drill Under Wayne National Forest

This is a momentous occasion, nearly 13 years in the making. The Ohio Dept. of Natural Resources (ODNR) issued permits on June 28 to drill two Utica Shale wells in Monroe County. Both wells begin on privately owned land, but then travel under sections of Wayne National Forest (WNF). As near as we can tell, these are the first two such wells to pass under WNF land. Below we tell you exactly where they’re located, and which company received the permits to drill them.
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Montage Resources Cuts Drilling Program to 1 Rig in 2nd Half 2019

Montage stock performance last 6 mo (click for larger version)

Montage Resources, which formed in a merger of Eclipse Resources and Blue Ridge Mountain Resources (formerly Magnum Hunter Resources) in March of this year, issued an operational update on Monday. The update says the company will produce more gas than it previously forecast for the second half of 2019. It also says because the price of gas is so darned low, they are cutting back from two to one active drilling rig in 2H19.
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Montage Resources Drilling 33% of 2019 Wells in Ohio Marcellus!

The former Blue Ridge Mountain Resources (formerly Magnum Hunter Resources) and Eclipse Resources tied the knot and merged at the end of February, promptly renaming itself Montage Resources (see Blue Ridge Merges with Eclipse, Renamed to Montage Resources). The newly merged entity released its first quarter 2019 update last week. We found some fascinating details about Montage’s plans for 2019.
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Blue Ridge Merges with Eclipse, Renamed to Montage Resources

Yesterday was an eventful day for the former Blue Ridge Mountain Resources (nee Magnum Hunter Resources) and Eclipse Resources. We’ve been telling you since last August that the two companies are merging, with Blue Ridge Mountain essentially buying out Eclipse. The deal is done as of yesterday and there is A LOT of news to share–including a name change for the newly combined entity.
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