Energy Companies

Beck Energy | Belmont County | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Monroe County | Ohio | XTO

XTO, Beck Energy Appeal OH Case Allowing Lease Termination
March 15, 2013March 15, 2013

Earlier this week MDN told you about 600-700 landowners in Ohio who won a lawsuit allowing them to terminate leases held with Beck Energy and XTO Energy (see OH Lawsuit Victory: 600-700 Landowners Can Terminate Beck, XTO Leases).

Beck and XTO are none too happy with the decision and have appealed it to the Ohio Court of Appeals:

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Energy Companies | Industrywide Issues | Litigation | Pennsylvania | Range Resources Corp | Washington County

Range Takes Robinson Twp, PA to Court over Permit Rejections
March 14, 2013March 14, 2013

In the ongoing spat between Range Resources and Robinson Township (Washington County), PA, yesterday Range filed an appeal of Robinson’s rejection of two drilling permits Range sought last year. Robinson Township officials say Range didn’t provide a sound study (how drilling noise will affect the area) and did not provide a site plan that identifies nearby buildings and structures.

Range says they’ve provided everything they need to provide legally, so they’re pushing forward with asking a judge to overturn the rejections…

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Air Quality | Devon Energy | Energy Companies | Industrywide Issues

Devon Energy Accuses EPA of “Seriously Flawed Misuse” of Data
March 13, 2013March 13, 2013

Devon Energy sent a letter March 5 to the federal Environmental Protection Agency to inform them that Devon is pulling out of the EPA’s Natural Gas STAR Program—a program aimed at reducing methane emissions. Devon says in the letter that EPA is guilty of “seriously flawed misuse” of the data provided to it by drillers to justify costly regulations and to “taint policy research.” The Devon letter minces no words…

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Antero Resources | Crestwood Midstream | Doddridge County | Energy Companies | Energy Services | Harrison County | Industrywide Issues | Pipelines | West Virginia

Crestwood Midstream – New Deal with Antero for Compressor Station
March 13, 2013March 13, 2013

Crestwood Midstream provides pipelines and compressor stations in West Virginia for their customer, driller Antero Resources. In Nov. 2012 Crestwood purchased four compressor stations in Harrison and Doddridge counties to better serve Antero. Yesterday Crestwood announced another new deal with Antero to build yet another compressor station (for $35 million) to service Antero’s “western” acreage in WV.

The Crestwood announcement about the new deal with Crestwood:

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Devon Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

First Driller to Abandon the Utica Shale & Other Tidbits
March 11, 2013March 11, 2013

Intrepid Utica Shale reporter Bob Downing from the Akron Beacon Journal attended the Ohio Oil and Gas Association (OOGA) annual winter meeting in Columbus last week. Bob filed the following list of “leftover items”—interesting tidbits—from that meeting, including the identity of the first company that will abandon the Utica:

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Beck Energy | Belmont County | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | Monroe County | Ohio | XTO

OH Lawsuit Victory: 600-700 Landowners Can Terminate Beck, XTO Leases
March 11, 2013March 11, 2013

A court case recently-decided could have big implications for landowners in Ohio. The case means that some 600-700 landowners with signed leases with Beck Energy Corp. and XTO Energy in Monroe and Belmont counties may be able to join a class action to have their leases terminated, allowing them to re-sign with a different company.

The details, as provided by law firm Jackson Kelly:

Read More “OH Lawsuit Victory: 600-700 Landowners Can Terminate Beck, XTO Leases”
Antero Resources | Belmont County | Energy Companies | Lease & Royalty Payments | Ohio

Antero Continues to Sign Leases with Barnesville, OH Residents
March 11, 2013March 11, 2013

Antero Resources continues to sign residents of the village of Barnesville (Belmont County), OH to leases with terms of $5,700 per acre for a signing bonus, plus 20% royalties. A month ago MDN told you about the push by Antero in Belmont County and Barnesville (see Antero Offers Barnesville, OH Residents $5,700/Acre 20% Royalties).

According to one of Antero’s main cheerleaders, Barnesville Mayor Ron Bischof, the company has signed a number of residents (records show over 800 leases) and they’re still offering the same deal. It’s not too late…

Read More “Antero Continues to Sign Leases with Barnesville, OH Residents”
Energy Companies | Marion County | Marshall County | Trans Energy | Tyler County | West Virginia | Wetzel County

Trans Energy Production Numbers for Wells in Marshall County, WV
March 8, 2013March 8, 2013

Trans Energy continues to drill solely in the Marcellus Shale of West Virginia. Yesterday they released initial production numbers on two more newly drilled wells—in Marshall County, WV (see below). In late November the company released IP numbers for for a pair of wells in Wetzel County (see Trans Energy Update on WV Marcellus Wells: “Two of Our Best”). Once again company CEO John Corp says these two new wells in Marshall are “two of our best performing wells to date.”

Corp also says the company is starting to produce “operational consistency” and a repeatable “manufacturing process” for drilling successful wells. Trans Energy is deploying two additional drilling rigs in Marshall and Marion counties now with plans to also drill in Tyler County later this year.

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BP | Economic Impact | Energy Companies | Industrywide Issues | Ohio | Processing Plants | Statewide OH | Utica Shale

BP Refinery Near Toledo Gets Upgrade, Anticipates OH Crude
March 8, 2013March 8, 2013

The BP-Husky Refinery, a 94 year-old oil and gasoline refinery in Oregon, OH (near Toledo), showed off a $400 million upgrade yesterday. The new upgrade took two years and 1,500 short-term workers to complete and will make the refinery more efficient, less polluting and enable it to refine better grades of gasoline.

The interesting part for MDN readers: Right now the refinery gets most of its crude oil from Canada, but new sources of crude are starting to flow from Ohio itself, as well as Pennsylvania and West Virginia—from the Utica and Marcellus Shale. The upgraded refinery has more flexibility to process different types of crude, including Ohio crude…

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Chesapeake Energy | Energy Companies

Chesapeake Board Member Resigns 2nd Time, Now Accepted
March 7, 2013March 7, 2013

A changing of the guard continues at Chesapeake Energy. Today the company announced one of its board members, V. Burns Hargis, is stepping down and will be replaced by Louis A. Raspino. Hargis headed up the internal audit committee that looked into whether or not CEO Aubrey McClendon’s personal financial deals had compromised the company. Hargis and the audit committee concluded nothing improper was done. The Securities & Exchange Commission, however, has transitioned from “a probe” into McClendon’s dealings into “an investigation.”

We suspect Chesapeake’s second largest outside investor, Carl Icahn (a corporate raider looking to flip his investment in the company into big money), also had something to do with Hargis’ departure. Icahn voted against Hargis at the last board election in June 2012. Hargis tendered his resignation immediately following the vote but the board refused it at that time. This time they accepted it.

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Brooke County | Chesapeake Energy | Energy Companies | Industrywide Issues | Lease & Royalty Payments | Litigation | West Virginia

WV Landowners *with* Lease Sue Chesapeake for Drilling Next Door
March 6, 2013March 6, 2013

A mother and son have filed a lawsuit against Chesapeake Energy in Brooke County, WV charging them with illegal trespass under their property and taking some of the natural gas that exists in the Marcellus Shale from under their property. West Virginia does not have a pooling law—the right of drillers to “force pool” parcels of land into a drilling unit if a majority of surrounding neighbors have agreed to allow it.

The strange thing about this case is that the mother and son have a signed lease with Chesapeake—a lease which they renewed for an additional 5-year term. For some reason they don’t want their property pooled with their neighbors into a unit for Marcellus drilling—they refused it. So Chesapeake drilled next door to their property, essentially ignoring them. The landowners say Chesapeake’s close-by drilling has caused them economic harm. It’s now a case in federal court…

Read More “WV Landowners *with* Lease Sue Chesapeake for Drilling Next Door”
1st NRG | Energy Companies | Utica Shale

1st NRG Still Looking for $ to Drill 7K Acres in Utica Shale
March 6, 2013March 6, 2013

1st NRG Corp. is one of the newer “players” in the Ohio Utica Shale. MDN previously pointed out their press statements seem to be heavy on fluff and light on specifics for how and when they’ll begin drilling (see 1st NRG Corp Gets $7M Loan to Begin Drilling in Utica, Other Plays). They issued a press release last week almost identical to the one from last November. Instead of saying we’re about to finalize an agreement for the Utica, they changed it to say we have finalized an agreement for the Utica. Again, no further specifics, other than they have their hand out looking for money (i.e. investors).

Here’s the latest slightly-tweaked and re-worked version of their previous press release:

Read More “1st NRG Still Looking for $ to Drill 7K Acres in Utica Shale”
Energy Companies | Energy Corporation of America | Kanawha County | West Virginia

ECA Moving/Expanding NE Headquarters to Charleston, WV
March 6, 2013March 6, 2013

Energy Corporation of America (ECA) will unveil plans today to move its eastern regional headquarters from “over the river” in Kanawha City, WV into Charleston, WV proper—at the Northgate Business Park. The new 60,000 square-foot facility is a good sign that ECA will continue to expand its presence in the Marcellus Shale. Headquartered in Denver, CO, ECA owns over 1 million acres of leases from New York to Tennessee, and operates over 4,600 wells (mostly conventional) and over 5,000 miles of pipeline. Most of their northeast operations are in West Virginia.

More on the new office building:

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Brooke County | Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Ohio County | West Virginia

Chesapeake Energy Tardy with Royalty Payments in WV
March 5, 2013March 5, 2013

According to two at least two West Virginia landowners, Chesapeake Energy has been in no hurry to pay them the royalties they are owed. In each case, the landowner has had to contact Chesapeake. Even after calling Chesapeake, the landowners are still waiting for their first royalty checks to arrive.

Here’s the story of two landowners, one in Ohio County, the other in Brooke County:

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Energy Companies | EnerVest | EV Energy Partners | Ohio | Stark County | Statewide OH | Tuscarawas County | Utica Shale

EnerVest Strategy: Sell Utica, Drill Vertical, Expand Midstream
March 4, 2013March 4, 2013

In September of last year, EV Energy Partners/EnerVest put 539,000 Ohio Utica Shale acres on the auction block, thinking they would get around $6 billion for it (see EnerVest Puts 539,000 Utica Shale Acres on Auction Block). In November, the company said they should complete the sale of the Utica acreage by the end of 2012 (see EV Energy Selling 539K Utica Shale Acres by Dec 31). That turned out to be a tad optimistic. EnerVest still does not have a deal for their Utica acreage.

An update on the company’s strategy from EV Energy Partners Chairman John Walker and EnerVest President Mark Houser, from Friday’s analyst call:

Read More “EnerVest Strategy: Sell Utica, Drill Vertical, Expand Midstream”
Energy Companies | Halcon Resources | Mercer County | Pennsylvania | Utica Shale | Venango County

Halcón Resources: Full Speed Ahead in Utica Shale for 2013
March 4, 2013March 4, 2013

Houston-based Halcón Resources Corporation issued their fourth quarter and full year 2012 financials and operational update last week. As MDN has been reporting, Halcón is ramping up in the Utica Shale (see Location of Second Halcon Utica Well in Trumbull County, OH). Their 2012 update further confirms that they are making a big push in the Utica for 2013.

In the extract below discussing Halcón’s Utica plans for 2013, we learn they have 130,000 acres, plan to drill 20-25 new wells and will spend $200 million on their Utica drilling program for the year. Interestingly, both of their completed Utica wells are located in the Pennsylvania Utica—not in Ohio…

Read More “Halcón Resources: Full Speed Ahead in Utica Shale for 2013”