Energy Companies

Energy Companies | Energy Services | Ethane | Exporting | Industrywide Issues | Pennsylvania | Pipelines | Range Resources Corp | Statewide PA | Sunoco Logistics

Philly Refinery Strikes Deal to Export SW PA Marcellus Ethane
January 25, 2013January 25, 2013

Marcellus Shale ethane, a valuable hydrocarbon recovered from natural gas wells in areas of southwestern Pennsylvania, will be exported to Norway from the recently reopened Sunoco Logistics terminal in Marcus Hook (near Philadelphia). Ethane and propane exports from the terminal are expected to ramp up in about two years once the new Mariner East pipeline from southwest PA is completed.

So who’s buying the ethane, and who’s selling it?…

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Energy Companies | EQT Corp

EQT 2012 Report: Marcellus Production Way Up, Profits Way Down
January 25, 2013January 25, 2013

Marcellus driller EQT reported their 2012 full-year earnings yesterday (full copy below), and in the report, we get details about their massive increase in Marcellus Shale gas production—up 85% over the previous year (150.6 billion cubic feet produced). They drilled 135 new wells last year, and all but eight of them were in the Marcellus Shale.

However, even with phenomenal Marcellus growth, the company’s profits tanked year over year—down from $479.8 million in 2011 to $183.4 million in 2012. Why the huge decrease? EQT explains in their report.

Read More “EQT 2012 Report: Marcellus Production Way Up, Profits Way Down”
Energy Companies | EQT Corp

EQT’s Estimated Reserves Increase 21% to 25.9 Trillion Cubic Feet
January 25, 2013January 25, 2013

EQT released their 2012 profits and production report yesterday (see EQT 2012 Report: Marcellus Production Way Up, Profits Way Down). In addition, EQT also released information about their “proved” and estimated reserves—the best estimate of how much gas is available to recover from their leased acreage.

Based on 2012 drilling results, EQT estimates their proved reserves (those reserves about which they are nearly 100% confident) have increased by 12% to 6 trillion cubic feet (tcf). But when you add to it “probable” and “possible” reserves, or “3P reserves,” the number goes to 25.9 tcf, a jump of 21%.

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Belmont County | Energy Companies | Industrywide Issues | Litigation | Ohio | Oxford Oil Company

Belmont County Landowners with Lease Sue to Stop Well Drilling
January 24, 2013January 24, 2013

A Barnesville (Belmont County), OH couple have sued the company they signed a lease with in 2008, Oxford Oil Company, to prevent Oxford from drilling a new well on a hayfield on their property.

The details as we know them:

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Chesapeake Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Research

Chesapeake will Allow EPA Access to Well Site for Fracking Study
January 24, 2013January 24, 2013

The Wall Street Journal reports that Chesapeake Energy has agreed to allow the federal EPA to access one of their drilling sites to be used as a guinea pig for before and after testing of water supplies near a fracked gas well. The EPA is conducting a years-long study, due to be completed in 2014, to evaluate whether or not they can try and claim fracking affects water. If they can make a case that fracking does affect water supplies, they plan to invoke the federal Clean Water Act to start regulating shale drilling via the back door which would, of course, trample on states’ rights as granted under the Constitution.

Apparently Chesapeake is willing to “pull back the kimono” and let the EPA have a peak. Their reasoning appears to be, “Hey, there’s nothing to fear since fracking does not affect water supplies, so why not?” From the WSJ:

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Belmont County | Energy Companies | Gulfport Energy | Harrison County | Ohio | Utica Shale

More Impressive Production Numbers for Gulfport in OH’s Utica
January 23, 2013January 23, 2013

Some more impressive production results have just been reported by Gulfport Energy for two of their Utica wells in Ohio: The Clay-1-4H in Harrison County, and the Stutzman 1-14H well in Belmont County. Recall that the most productive well we’ve heard of anywhere (Utica, Marcellus or any other play) was drilled by Gulfport, the Shugert 1-12H in Belmont County. Looks like Belmont County in particular continues to be a great place to drill.

Here’s the results they reported yesterday:

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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Monroe County | Noble County | Ohio | Triad Hunter | Utica Shale | Washington County (OH)

Magnum Hunter Ramps up in OH Utica Shale with 4 Test Wells
January 23, 2013January 23, 2013

The Marcellus Shale is the powerhouse workhorse, but the Utica Shale continues to be white hot for development. Magnum Hunter Resources and its subsidiary Triad Hunter announced yesterday the company will drill a minimum of four Utica “test wells” in 2013. Provided they find a good result, they plan “further development” of their 107,000 gross acres of Utica Shale leases later in 2013—which connotes they’ll drill those test wells early this year. In fact, Triad Hunter is already working on their first Utica well pad in Washington County, OH. A second well pad in Washington County is already in the planning stages, as is a well pad in Noble County.

Magnum Hunter’s press release outlining their plans for Ohio, including references to new OH Marcellus wells just completed and new pipelines on the way for some of their existing OH Marcellus wells:

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Energy Companies | Lycoming County | Pennsylvania | Seneca Resources

Seneca Resources: Impressive Results for 6 PA Marcellus Wells
January 22, 2013January 22, 2013

Seneca Resources, the drilling arm and subsidiary of National Fuel Gas Company, released a brief statement today announcing some very impressive initial flow rates on six recently completed Marcellus Shale wells in Lycoming County, PA—some of the best results in the Marcellus we’ve seen:

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BP | Energy Companies | Industrywide Issues | Research

BP Energy Outlook 2030: Shale Energy Impact “Far Reaching”
January 22, 2013January 22, 2013

Energy giant BP, like energy giant ExxonMobil, are both drillers in the Marcellus and Utica Shale plays. They both also publish an annual energy outlook that shares their latest thinking about where the world’s energy markets are headed in the next few decades. ExxonMobil’s annual Outlook for Energy was published in December (see ExxonMobil Predicts World Fossil Fuel Usage Up 5% by 2040). BP’s Energy Outlook 2030 was just released this month (full copy embedded below). The word “shale” appears a lot.

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Energy Companies | Gastar Exploration | Marshall County | West Virginia | Wetzel County

Insider Look at Gastar’s WV Marcellus Operations, Changes in 2013
January 21, 2013January 21, 2013

Gastar Exploration Ltd. is a Houston-based independent company engaged in exploration and production of natural gas, natural gas liquids, condensate and oil. Their current focus is on the Marcellus Shale play—specifically in West Virginia’s northern panhandle.

A recent interview with Gastar’s vice president of northeast operations, Michael McCown, pulled the curtain back on the company’s WV Marcellus results in 2012, and revealed their plans to change drilling locations in 2013:

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Antero Resources | Energy Companies | Guernsey County | Hydraulic Fracturing | Industrywide Issues | Lease & Royalty Payments | Noble County | Ohio

OH Muskingum Watershed District to Sign Drilling Lease in Feb.
January 21, 2013January 21, 2013

Last November, MDN told you that the Ohio Muskingum Watershed Conservancy District (MWCD), the largest watershed district in the state covering about 20% of Ohio’s landmass, had entered negotiations with Antero Resources to allow drilling and fracking under MWCD land around Seneca Lake (see OH Muskingum Watershed District Seeks Lease with Antero). Everything but the final price is now done, and the proposed lease (copy embedded below) will be voted on at the next board meeting of the MWCD on Feb. 15.

The lease, as written, will allow drilling under but not on 6,700 acres of property in Guernsey and Noble counties. Antero will have to drill from adjacent properties to reach the land—no disturbance of the surface will be permitted. How much will the MWCD get for a signing bonus and royalties?

Read More “OH Muskingum Watershed District to Sign Drilling Lease in Feb.”
Carrizo Oil & Gas | Chesapeake Energy | Energy Companies | Energy Services | EV Energy Partners | Gulfport Energy | Hess | MarkWest Energy | Ohio | Statewide OH | Utica Shale

More than $1.2B & Counting on New Utica Drilling for 2013
January 21, 2013January 21, 2013

So far, more than $1.2 billion (that we know of) has been budgeted by Ohio’s Utica Shale drillers for 2013. A whopping $7 billion has been allocated for pipelines and processing plants over the next several years.

Here’s a quick rundown on the plans for a few of the Utica’s major drillers and what they plan to spend on drilling in the Utica in 2013:

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Energy Companies | Energy Services | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Pennsylvania General Energy | Statewide PA | Universal Well

PA Frack Pumps Converting to Use LNG for Fuel
January 21, 2013January 21, 2013

EQT was the first driller in the Marcellus Shale to convert a drilling rig to run on electricity produced by engines using an LNG/diesel mix (see this MDN story). CONSOL was next to experiment with converting some of their rigs to use LNG/diesel (see this MDN story). Then Seneca Resources, the gas drilling arm of National Fuel Gas Company, announced two of their drilling rigs will use 100% LNG as fuel (see this MDN story).

What started as a trickle is turning into a flood in Pennsylvania and throughout the Marcellus/Utica region and beyond. More companies are in the process of converting fleets to run on LNG or a mix of LNG/diesel. These new conversions will not only power initial drilling, but will also power the massive pump engines and heavy equipment used in the fracking process itself…

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BP | Energy Companies | Lease & Royalty Payments | Ohio | Trumbull County

BP Cancels Deal for 7% of ALOV Leases in Trumbull County, OH
January 18, 2013January 18, 2013

In March 2012, BP signed a huge deal with landowners belonging to the Associated Landowners of the Ohio Valley (ALOV) group to lease 84,000 acres in Trumbull County, OH (see BP’s Big Utica Shale Deal, Leases 84K Acres in Ohio). The terms of that deal were $3,900 per acre as a signing bonus and 17.5% in royalties. Very sweet indeed.

Part of the process when signing a lease deal is “due diligence” in researching property deeds to be sure the driller will have a clear right to drill on or under the property. About 180 landowners with a collective 4,203 acres didn’t make the cut for the ALOV deal, and their contracts, according to the terms of the lease, were “released” this week by BP:

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Allegheny County | CONSOL Energy | Energy Companies | EQT Corp | Lease & Royalty Payments | Pennsylvania

Pittsburgh Airport Wants More $ from CONSOL…After Accepting Bid
January 18, 2013January 18, 2013

The story of the Pittsburgh International Airport’s acceptance of a bid from natural gas driller CONSOL Energy to drill on and under airport property, a bid that would provide less than half the money that a bid from EQT would have provided, continues to get curiouser and curiouser (see Inside Job? Pittsburgh Airport Leases Land to CONSOL for background and MDN’s original comments).

Apparently MDN isn’t, as we had thought, the only one who noticed this deal smells to high heaven. The latest news: PIA is negotiating with CONSOL to get them to raise the signing bonus, which is now rumored to be somewhere in the neighborhood of “$35 million to $40 million.” That’s certainly better, but still not has high as EQT’s offer of a $44 million bonus payment.

And what’s with “negotiating” after a bid has been accepted? A bid is a bid—you accept or reject it, especially if a public agency is involved. You don’t accept an offer and then promptly start negotiating to change it! Something is still very “off” about all of this…

Read More “Pittsburgh Airport Wants More $ from CONSOL…After Accepting Bid”
Devon Energy | Energy Companies | Knox County | Ohio | Utica Shale

Devon Energy Plugs Third Utica Well, Changes Strategy
January 18, 2013January 18, 2013

Devon Energy, recently named by FORTUNE Magazine as one of the “100 Best Companies to Work For” in the U.S., has just plugged a third Utica Shale well in Ohio and is signaling a major change in strategy. They no longer plan to drill for natural gas in the Utica and will instead concentrate 100% of their time (and money) on drilling for oil.

A few weeks ago MDN told you about two Ohio Utica wells plugged and “abandoned” by Devon, one in Medina County and the other in Ashland County where they found disappointing results (see Flip Side: Some OH Utica Shale Wells Get Plugged/Abandoned). The third Utica well to be plugged and abandoned by Devon is located, ironically, in Utica, Ohio (Knox County):

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