Energy Companies

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”
Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Statewide WV | West Virginia

The Marcellus Continues to be Star Performer for Chesapeake
August 5, 2013August 5, 2013

Different media outlets have analyzed the comments made last Thursday by Chesapeake Energy officials, looking for Chessy’s “take” on their particular region. A newspaper in West Virginia published the report below that looks at Chessy’s update on the Marcellus Shale in the southwestern corner of the play–otherwise known as the “wet gas” area. Bottom line: Although everyone continues to focus on the Chesapeake’s love affair with the Utica Shale, the Marcellus Shale is the play actually contributing to the company’s bottom line–in a big way. The Marcellus is helping turn around the good ship Chesapeake.

Of particular interest to MDN in this brief article is a short paragraph that mentions the signing bonus/royalty deals landowners in the Upper Ohio Valley have recently landed with Chesapeake and other drillers–some of the highest bonus and lease terms we’ve seen to date in the Marcellus…
Read More “The Marcellus Continues to be Star Performer for Chesapeake”
Carroll County | Chesapeake Energy | Columbiana County | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake’s Latest Thinking about the OH Utica Shale
August 5, 2013August 5, 2013

More analysis of last Thursday’s investor/analyst phone call with Chesapeake Energy officials. Specifically, this article looks at the comments made by new CEO Doug Lawler and long-time COO Steve Dixon comments about the Ohio Utica Shale:
Read More “Chesapeake’s Latest Thinking about the OH Utica Shale”
BP | CNX Resources | Energy Companies | Halcon Resources | Ohio | Trumbull County | Utica Shale

List of 20 Existing/Planned Utica Wells in Trumbull County, OH
August 5, 2013August 5, 2013

Embedded in an article about the delay in natural gas and gas liquids flowing from the Utica Shale region due to lack of infrastructure, we found this handy list of 20 planned or existing Utica Shale wells for Trumbull County, OH, including where the well is located and the driller’s name:
Read More “List of 20 Existing/Planned Utica Wells in Trumbull County, OH”
Energy Companies | Halcon Resources | Mahoning County | Ohio | Statewide OH | Trumbull County | Utica Shale

Halcón Resources: Will Drill Up to 500 Wells in the Utica
August 2, 2013August 2, 2013

Halcón Resources Corporation, increasingly an important driller in the Utica Shale, released their second quarter update yesterday. Halcón CEO Floyd Wilson also held a conference call for analysts. On that call, Wilson boasted about Halcón’s Utica Shale program–in particular the Kibler 1H well in Trumbull County which has been producing 2,233 barrels of oil equivalent per day–75% of it liquids. Halcón, which concentrates its drilling in “oily” plays like the Bakken and Utica, is currently operating 2 drilling rigs in Ohio/Pennsylvania. They’ve drilled nine Utica wells and are now evaluating the results. Halcón has 142,000 acres leased in the Utica Shale (primarily in Ohio).

Remarks about Halcón’s Utica program from the conference call, and the Utica portion of yesterday’s 2Q13 report:
Read More “Halcón Resources: Will Drill Up to 500 Wells in the Utica”
Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Pipelines | Regulation | Spectra Energy | Statewide OH

Spectra’s OH Pipeline Project Advances, Sept 20 Deadline w/FERC
August 2, 2013August 2, 2013

More than 1 1/2 years ago MDN told you about a planned new 70-mile pipeline and compressor station to connect Utica and Marcellus wells in eastern Ohio to Spectra Energy’s Texas Eastern pipeline system (see Chesapeake Investing in New 70-Mile Ohio Pipeline). Called the Ohio Pipeline Energy Network (OPEN), the project is a $500 million joint venture between Chesapeake Energy, American Electric Power and Spectra Energy. Not since December 2011 have we heard any news about the project–until now.

Even though there’s been no media coverage, Spectra has been hard at work planning and holding public meetings for feedback on eight different proposed pipeline routes. The Federal Energy Regulatory Commission (FERC) has given Spectra until Sept. 20 to tell them which alternative is their preferred route. FERC will then make a decision and (presumably) issue a permit that will allow Spectra to begin construction. An update on the OPEN project…
Read More “Spectra’s OH Pipeline Project Advances, Sept 20 Deadline w/FERC”
Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake’s Lawler Excited about OH Utica, Calls it “Outstanding”
August 2, 2013August 2, 2013

Chesapeake Energy’s new CEO, Doug Lawler, like Chessy’s founder and first CEO Aubrey McClendon, positively gushes when it comes to the Utica Shale. On a conference call with analysts yesterday, Lawler said, “The Utica is outstanding,” and he sees the Utica as “…a very strong asset going forward.”

More details on Chessy’s Utica Shale drilling program in Ohio from Lawler:
Read More “Chesapeake’s Lawler Excited about OH Utica, Calls it “Outstanding””
Energy Companies | Pennsylvania | Statewide PA | Talisman Energy

Talisman Makes Noise About Selling Marcellus Midstream Assets
August 2, 2013August 2, 2013

Canadian-based Talisman Energy is a major Marcellus Shale driller in Pennsylvania. They’re also a company in financial trouble–in the midst of attempting to turn the company around in the direction of profitability. A story out of Canada about Talisman’s latest turnaround efforts talks about the company putting certain assets on the auction block, including their considerable assets in Norway. Tucked in the article is this very brief mention that some of Talisman’s Marcellus assets may also go on the auction block:
Read More “Talisman Makes Noise About Selling Marcellus Midstream Assets”
Energy Companies | Pennsylvania | Southwestern Energy | Statewide PA

Southwestern Energy 2Q13: 1/2 Bcf/d of Marcellus Gas Flowing
August 2, 2013August 2, 2013

Southwestern Energy has a sizable drilling operation in the Pennsylvania Marcellus Shale. In their second quarter 2013 update, posted yesterday, Southwestern reports they have 129 Marcellus wells now in production and another 99 being drilled. As of June 30, Southwestern’s Marcellus wells were producing an average 503 million cubic feet of natural gas per day–just over the half billion per day mark.

Here’s the Marcellus update taken from yesterday’s 2Q13 report:
Read More “Southwestern Energy 2Q13: 1/2 Bcf/d of Marcellus Gas Flowing”
Allegheny County | Energy Companies | EQT Corp | Forced Pooling | Industrywide Issues | Litigation | Pennsylvania | Statewide PA

Bad News: EQT Sues 70 Landowners Using New PA Forced Pooling Law
August 1, 2013

The recently signed Pennsylvania Royalty Bill SB259 provides extra transparency for landowners in how royalties are calculated, but it also introduces forced pooling for some landowners with old, pre-Marcellus leases (see PA Gov Corbett Signs Back-Door Forced Pooling Bill into Law). As MDN and landowner groups like the National Association of Royalty Owners (NARO) feared, this legislation is now being used against landowners. Earlier this week, EQT Corp. used the new law to sue 70 landowners to force them to allow EQT to get on their land to conduct survey work for future drilling on or under the land. Bye bye negotiations. Bye bye fairness. Hello steamroller.

This lawsuit is bad news for PA landowners and bad news for pro-drilling Gov. Tom Corbett who mouthed platitudes that this type of thing would not happen when he signed it into law…
Read More “Bad News: EQT Sues 70 Landowners Using New PA Forced Pooling Law”
Energy Companies | Energy Services | Hydraulic Fracturing | Industrywide Issues | Litigation | MarkWest Energy | Pennsylvania | Range Resources Corp | Washington County | Williams

Last Document Released in Hallowich v Range $750K Settlement
August 1, 2013August 7, 2013

It’s been a long struggle for the Pittsburgh Post-Gazette and the Washington (PA) Observer-Reporter, but they finally won–if you can call it a win. Last year, both newspapers sued to have a sealed court case opened. The case involves an off-the-record settlement between the Hallowich family in Washington County, PA and Range Resources, MarkWest Energy and Williams (see Pittsburgh Newspapers Sue to Unseal Drilling Court Case). The Hallowiches claimed nearby drilling and pipeline activity threatened the health of their family–in particular their two children. Range and the other plaintiffs elected to settle, but the case and all of the documents were closed as part of the settlement. So the newspapers sued to have the record opened.

In March of this year, a different judge reviewed the case and ordered the court documents be opened (see Judge Orders Range/Landowner Settlement in PA Made Public). Anti-drillers were disappointed to learn that there were no smoking guns–no admissions or evidence of any kind that drilling activity had polluted water, air, etc. In fact, among the documents was an affidavit signed by the Hallowiches stating that drilling had not caused any adverse health impacts for their family (see Affidavit in Range PA Settlement Shows No Drilling Health Impacts). However, there was one final document not made public by the court and the newspapers kept hounding. Success at last! The final document was released this week (copy embedded below). What does it say?…
Read More “Last Document Released in Hallowich v Range $750K Settlement”
Chesapeake Energy | Energy Companies

Chesapeake 2Q13: Dramatic Turnaround from One Year Ago
August 1, 2013August 1, 2013

It appears that the great ship of Chesapeake Energy is, ever so gradually, turning around. We won’t recount how Chesapeake’s founder Aubrey McClendon was unceremoniously dumped by corporate raider Carl Icahn, nor how some of his closest long-time “friends” betrayed him. All water under the bridge now. The news is that Chesapeake released their second quarter update today and the numbers are mostly good–very good. The company’s EBITDA (net income) increased 77% from the same time last year, and operating cash flow was up 53%.

With respect to the Marcellus, Chesapeake says they connected an astonishing 131 wells during 2Q13, more than double the 52 they connected in 2Q12. Dry gas production in the northern part of the Marcellus averaged 780 million cubic feet per day, and wet gas production in the southern Marcellus averaged 208 mmcf/d, for a total of 988 mmcf/d–almost 1 bcf/d! (Cabot and EQT are the first two companies to average more than a billion cubic per day.) Chesapeake reports they have 11 active drilling rigs in the Utica Shale and 5 in the Marcellus.
Read More “Chesapeake 2Q13: Dramatic Turnaround from One Year Ago”
Belmont County | Energy Companies | Harrison County | Hess | Ohio | Statewide OH | Utica Shale

Hess Drills 10 Wells in OH Utica Shale in 2Q13
August 1, 2013August 1, 2013

As part of their 2Q13 update, Hess reports the following details about their Utica Shale drilling program in Ohio for the past three month period:
Read More “Hess Drills 10 Wells in OH Utica Shale in 2Q13”