Energy Companies

Energy Companies | EnerVest | EV Energy Partners | Guernsey County | Harrison County | Lease & Royalty Payments | Noble County | Ohio | Utica Shale

EVEP/EnerVest Cuts Deal to Sell 22.5K OH Utica Acres for $284M
August 9, 2013August 9, 2013

In September last year, EV Energy Partners/EnerVest put more than a half million acres of Ohio Utica Shale acreage on the market. Near the end of last year, a deal for 104,000 of those acres seemed to be almost done, but in April of this year, the deal fell apart (see EV Energy Partners Deal to Sell 104K Utica Acres Dead, What Now?). EVEP then changed gears and said instead of putting big blocks up for sale, they’ll look at selling off smaller chunks (see EV Energy: Changing from Big Deals to Small for Utica Land Sale). Looks like the change in strategy worked.

Today, EVEP announced they’ve made a new deal to sell 22,535 acres in Guernsey, Harrison and Noble counties in Ohio for $284.3 million to an unnamed buyer. According to EVEP, the deal works out to be a very high $12,900 per acre. We ran the math and came up with $12,616 per acre. Either way, EVEP is getting a LOT of money for unloading Utica Shale acreage they don’t want. This deal is scheduled to close in the third quarter–the next few months. Let’s see if this one actually happens.

The announcement from EVEP/EnerVest (with a map of the acreage sold):
Read More “EVEP/EnerVest Cuts Deal to Sell 22.5K OH Utica Acres for $284M”
Elk County | Energy Companies | Lycoming County | Pennsylvania | Seneca Resources | Tioga County (PA)

Seneca Resources: Shale Gas Production Up 54% Thx to Marcellus
August 9, 2013August 9, 2013

National Fuel Gas Company, the parent of Marcellus driller Seneca Resources, released its third quarter (everyone else’s second quarter) financial and operational update yesterday. CEO Ronald Tanski called Seneca’s PA Marcellus production in the previous quarter “robust” and was the biggest reason why they saw a 54% increase in production from the same period last year. He also said Seneca’s early results from four new wells in Elk County, PA are promising.

Select portions of the National Fuel Gas report issued yesterday:
Read More “Seneca Resources: Shale Gas Production Up 54% Thx to Marcellus”
Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Mahoning County | NiSource | Ohio | Roads

NiSource Wins Friends in Mahoning County with Road Repair Project
August 9, 2013August 9, 2013

Pennant Midstream, an entity created by NiSource and Hilcorp Energy, is developing a $300 million natural gas gathering and processing network in northeastern Ohio that extends from Mercer and Lawrence counties in Pennsylvania, through Mahoning County, and into Columbiana County. The project, called Hickory Bend, will gather natural gas produced from Hilcorp wells exploring the Utica shale and transport the gas to a $150 million cryogenic processing plant under construction in Springfield Township. By all accounts the project is on track to be completed by the end of this year (see OH Hickory Bend Pipeline/Plant Makes Excellent Progress).

NiSource is making new friends with their latest initiative. As part of the Hickory Bend project, NiSource (i.e. Pennant Midstream) will spend $1.5 million to rebuild roads in Mahoning County, OH likely to be damaged from heavy trucks working on the project. According to county officials, the amount of roadways that will be rebuilt, and the way NiSource is doing it (not just repaving but rebuilding from base layers) goes “well above and beyond the minimum that was required”…
Read More “NiSource Wins Friends in Mahoning County with Road Repair Project”
Dominion Energy | Energy Companies | Energy Services | Gulfport Energy | Harrison County | Industrywide Issues | Ohio | Pipelines | Statewide OH | Utica Shale

Gulfport Signs Pipeline Deal to Sell Utica Gas to Midwest Market
August 8, 2013August 8, 2013

Straight off a conference call yesterday comes the news that Gulfport Energy has just signed a 10-year contract with Dominion Transmission to transport the natural gas Gulfport produces in the Ohio Utica Shale to the Midwest–using Dominion’s pipelines. The agreement is to ship 100 million cubic feet per day of gas (100 Mmcf/d), ramping up to 150 Mmcf/d by late 2014. Gulfport’s CEO James Palm made the announcement yesterday.

Palm also said on the conference call that Gulfport continues to lease acreage in Ohio and plans to drill “at least” 70 new wells next year in the Utica. More from yesterday’s call:
Read More “Gulfport Signs Pipeline Deal to Sell Utica Gas to Midwest Market”
Commodity Price | Coterra Energy (Cabot O&G) | Energy Companies | Industrywide Issues | Pennsylvania | Research | Susquehanna County

At What Mmcf Price Do Shale Drillers Make Money?
August 8, 2013August 8, 2013

Ken Medlock, senior director of Rice University’s Baker Institute Center for Energy Studies and a team of Rice researchers recently performed a study of shale drilling economics. One of the questions they looked at: At what price per million cubic feet (or Mmcf) must a driller sell the gas in order to at least break even and not lose money? They have some interesting findings…
Read More “At What Mmcf Price Do Shale Drillers Make Money?”
Energy Companies | Industrywide Issues | NG Vehicles | Pennsylvania | Range Resources Corp | Statewide PA | Washington County

Range Rolls Out New Fleet of CNG Trucks in SW PA
August 8, 2013August 8, 2013

Range Resources is practicing what it preaches–or rather consuming what it produces. Yesterday at a ceremony at Range’s regional HQ in Southpointe (near Pittsburgh), the company showed off a new fleet of Dodge and Chevy pickup trucks that run on compressed natural gas (CNG). With the new trucks added, Range now operates 100 of them out of their Southpointe operation. With CNG prices running at the gasoline equivalent of around $2 per gallon, Range says the trucks will pay for themselves within two years due to the low price of using CNG.

According to the PA Dept. of Environmental Protection, by the end of this year there will be 100 CNG fueling stations across PA. More and more Pennsylvanians are interested in converting to CNG vehicles…
Read More “Range Rolls Out New Fleet of CNG Trucks in SW PA”
Broome County | Chesapeake Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Regulation | Statewide NY | Tioga County (NY)

Chesapeake Energy Throws in the Towel on NY Shale Drilling
August 7, 2013August 7, 2013

A good news/bad news story. The good news is that Chesapeake Energy is giving up the legal fight with landowners in New York to extend their leases beyond the original lease term. MDN has long chronicled the fight on the part of landowners to stop Chesapeake from claiming force majeure to extend leases signed for (in some cases) just a few dollars per acre–leases signed long before horizontal drilling and fracking were contemplated (see More on the NY Force Majeure Ruling Against Chesapeake). After two years of legal wrangling, Chesapeake is throwing in the towel. Landowners will now be able to sign with another company, if drilling ever comes to NY.

The bad news is, Chesapeake is throwing in the towel–as in they are giving up on NY–tired of the ongoing five-year moratorium in shale drilling. Wake up Cuomo! Your actions have caused this! You are causing direct economic harm to your residents every day the moratorium stays in place…
Read More “Chesapeake Energy Throws in the Towel on NY Shale Drilling”
Energy Companies | Energy Services | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Pipelines | Range Resources Corp | Washington County

Washington County, PA Judge Continues Anti-Drilling Decisions
August 7, 2013

What if a county judge’s wife was an anti-drilling activist–so motivated by her fervor she knocks on area residents’ doors to ask for their signature on petitions to ban drilling. Do you think that might affect the objectivity of said judge? And what if that judge repeatedly rules against gas drillers in case after case? Do you think that might be evidence that said judge is not capable of setting aside his own bias? Yeah, we would think so too–and such is the case with Washington County, PA judge John DiSalle.

Earlier this year, Judge DiSalle blocked Range Resources from obtaining two permits to drill wells in Robinson Township (see Judge Refuses to Recuse Himself from Range v Robinson Twp Case). Judge DiSalle is back–this time on a different case. DiSalle is now refusing to allow Range and MarkWest Energy to build a compressor station in Cecil Township. See a trend here? Range and MarkWest are appealing DiSalle’s latest anti-drilling ruling to the PA Commonwealth Court…
Read More “Washington County, PA Judge Continues Anti-Drilling Decisions”
Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

Range Resources Backpedals on Gag Order for Hallowich Children
August 7, 2013August 7, 2013

Last week MDN told you about the “final document” to be released in a previously sealed court case in Washington County, PA (see Last Document Released in Hallowich v Range $750K Settlement). The document was a transcript of a court hearing where the Hallowiches, their attorney and attorneys for Range and MarkWest discussed the non-disclosure “gag order” agreement being signed by the Hallowiches. The agreement binds the Hallowiches from ever talking publicly about the case for which they received a $750,000 settlement.

The funky part is, it appears the agreement signed by the Hallowich parents would also bind their children from ever talking about fracking and drilling in public too. Even the judge in the case admitted the agreement seemed to do just that, saying it would be “a law school question.” In a new twist in the case, lawyers for Range now say the gag order does not apply to the children, although previously they said it would apply and that they would “certainly” enforce it…
Read More “Range Resources Backpedals on Gag Order for Hallowich Children”
Energy Companies | Epsilon Energy

Epsilon Energy Makes “About-Face” on Marcellus Drilling
August 7, 2013August 7, 2013

Wow! What a difference a year can make. Last year at this time, MDN told you about Canadian independent driller Epsilon Energy’s decision to scale back drilling in the Marcellus in favor of drilling more in the oil-rich Bakken Shale play in Canada (see Epsilon Energy 2Q12 Update: Scaling Back in the Marcellus). Less than a month ago, there was a shareholder rebellion and the entire sitting board of directors was canned (see Shareholder Rebellion at Epsilon Energy – New Board as of Today).

Yesterday, Epsilon released their 2Q13 update–an update all about the Marcellus. Epsilon CEO Michael Raleigh is quoted in the update as saying the company is just starting to execute a new plan to turn the company into a “pure play” driller–concentrating solely on drilling in the Marcellus Shale. That’s quite a turnabout in 12 months! Relevant portions from yesterday’s Epsilon update and what they hope to accomplish in the Marcellus this year:
Read More “Epsilon Energy Makes “About-Face” on Marcellus Drilling”
Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport Energy 2Q13: “All in” for the Utica Shale
August 7, 2013August 7, 2013

Gulfport Energy is definitely “all in” when it comes to drilling in the Utica Shale. The Oklahoma City-based company released its second quarter update yesterday, an update that shows that of the nine active rigs Gulfport is operating across three different shale plays, seven of those rigs are operating in the Ohio Utica Shale. Need we say more?

The operational update section of yesterday’s Gulfport update, outlining some of the outstanding results they’re getting in the Utica:
Read More “Gulfport Energy 2Q13: “All in” for the Utica Shale”
Carrizo Oil & Gas | Commodity Price | Energy Companies | Industrywide Issues

Carrizo Oil & Gas 2Q13: Scaling Back in the Marcellus…for Now
August 7, 2013August 7, 2013

Carrizo Oil & Gas is a Houston-based driller that concentrates on U.S. shale plays. They have active drilling operations in the Eagle Ford and Barnett (TX), the Niobrara (CO), and in both the Marcellus and Utica Shale region in the northeast (PA & OH). In reviewing today’s Carrizo 2Q13 update, it’s obvious the company has decided to scale back in the Marcellus/Utica for now, in favor of putting their effort into the other plays. Carrizo’s average daily gas production in the Marcellus decreased from 38 million cubic feet per day (Mmcf/d) in 1Q13 to 33.9 Mmcf/d in 2Q13. Why? They’ve “shut-in” a number of their wells in Wyoming County, PA, waiting for the price of Marcellus gas to go up before they sell more.

Gas prices in the very-productive Marcellus are typically some of the lowest in the country. More supply than demand at this point. For example, yesterday the average sale price for natural gas along pipelines in the northeast Marcellus was $1.89 Mmcf according to NGI’s Shale Daily. The average sale price for gas yesterday in the Barnett Shale was $3.36 Mmcf! You can see why Carrizo is cooling their heals in the Marcellus. Here’s the portion of today’s Carrizo update dealing with their drilling program in the Marcellus/Utica:
Read More “Carrizo Oil & Gas 2Q13: Scaling Back in the Marcellus…for Now”
Energy Companies | Rex Energy | Upper Devonian Shale

Rex Energy 2Q13: Revenue Up 83%, “Super Rich” Upper Devonian Well
August 7, 2013August 7, 2013

Marcellus driller Rex Energy released its second quarter update yesterday. Operating revenue was way up–83% from last year this time. Gas production was up too–38% from this time last year. Rex has drilled 11 Marcellus wells so far this year, with plans to complete 19. They’ve also drilled 8 Utica Shale wells with plans to complete 11.

Below are the details of Rex’s drilling in both the Marcellus and Utica–along with details about their newly completed “super rich” Upper Devonian well. Select portions of the Rex 2Q13 update:
Read More “Rex Energy 2Q13: Revenue Up 83%, “Super Rich” Upper Devonian Well”
Accidents | Coterra Energy (Cabot O&G) | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research | Susquehanna County

EPA’s Dimock PowerPoint Revealed – But, is it Real?
August 6, 2013August 6, 2013

Apparently the Los Angeles Times has a friend in the radically left DeSmogBlog and so has shared the famed, single EPA PowerPoint presentation that supposedly blames drilling and fracking by Cabot Oil & Gas for methane in nearby water wells. DeSmogBlog has an “exclusive” copy of said PowerPoint, so we assume they got it from the LA Times. We grabbed a copy from the DeSmogBlog website and embedded it below so you can read it and evaluate it for yourself.

The most recent hubbub about Dimock arose when the LA Times trumpeted they have in their possession a never-before-seen secret/internal “report” from the EPA–which turns out to be a PowerPoint presentation–blaming Cabot’s fracking for water problems in Dimock, PA (see LA Times Attempts New Hatchet Job on Fracking in Dimock). Is this finally the smoking gun? Is the Obama EPA now covering up evidence against evil “big oil & gas”?…
Read More “EPA’s Dimock PowerPoint Revealed – But, is it Real?”
Energy Companies | Statewide WV | Stone Energy | Upper Devonian Shale | West Virginia

Stone Energy Update: On Track to Drill 30 Marcellus Wells in 2013
August 6, 2013August 6, 2013

Stone Energy is an independent driller with operations both off- and on-shore. Last December MDN told you about Stone’s plan to start spending 33% of its $650 million exploration and production budget for 2013 on drilling in the West Virginia Marcellus Shale (see Stone Energy 2013 Plans: Spend 33% of Budget on Marcellus). Plans were to drill 28-32 new Marcellus wells this year. According to Stone’s second quarter 2013 report released yesterday, they’re right on track. So far they’ve drilled 16 wells and are on track to complete up to 30 Marcellus wells by the end of this year.

In yesterday’s update, Stone CEO David Welch reiterated the company’s strategy is to move away from drilling in the relatively shallow Continental Shelf area of the Gulf of Mexico (less than 1,000 feet of water), and drill more in both the deep water Gulf region as well as in the Marcellus. Welch said their strategy continues to benefit the company with rising production numbers, particularly from the Marcellus wells drilled. We also learn from yesterday’s update that Stone has drilled a test well in the Upper Devonian Shale and expects to bring it online later this year. Select portions of yesterday’s 2Q13 update:
Read More “Stone Energy Update: On Track to Drill 30 Marcellus Wells in 2013”
Energy Companies | EXCO Resources | Pennsylvania | Statewide PA

EXCO Resources 2Q13 Update: 33 Marcellus Wells Now Online
August 6, 2013August 6, 2013

EXCO Resources reported their second quarter results yesterday. EXCO is active in a number of shale plays, among them the Marcellus. EXCO reports during 2Q13 they started to drill two new Marcellus wells and completed three wells, all of them in Pennsylvania. The plan is to complete nine wells by the end of the year.

The Marcellus section of yesterday’s EXCO update:
Read More “EXCO Resources 2Q13 Update: 33 Marcellus Wells Now Online”