Energy Companies

Energy Companies | Norse Energy

Norse Energy Will Run Out of Money in December
November 19, 2012November 19, 2012

Norse Energy issued a press release last week to update stockholders and investors on where the company stands with its finances. Bottom line? Unless something changes, the company will run out of money in December. They have $1.5 million in the bank and that will get them through to December. If the people who have loaned them money (floated them bonds) don’t rework the financing, or if Norse can’t come up with more money from somewhere—like now—let’s just say it’s not good news.

Norse is still holding out hope that New York, where they have some 130,000 acres under lease, will finally allow fracking to commence. That gamble (so far) has not paid off. Here’s the Norse statement issued yesterday:

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Antero Resources | Energy Companies | Guernsey County | Hydraulic Fracturing | Industrywide Issues | Noble County | Ohio

OH Muskingum Watershed District Seeks Lease with Antero
November 19, 2012November 19, 2012

In what is sure to tick off anti-drillers, the Ohio-based Muskingum Watershed Conservancy District (MWCD) announced Friday it will seek a lease with Antero Resources to allow shale gas drilling under 7,600 acres of district-owned land at Seneca Lake. The Muskingum River Watershed covers more than 8,000 square miles and drains into the Muskingum River. It is the largest wholly contained watershed in the state of Ohio covering about 20 percent of the state. More recently, the MWCD has been in hot water with anti-drillers over selling what amounts to a thimble-full of their vast water supplies to drillers in Ohio that use it for fracking Utica Shale wells (see this MDN story).

So, just how much will the MWCD get for leasing the Seneca Lake land?

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Allegheny County | Beaver County | Energy Companies | Pennsylvania | Range Resources Corp | Washington County

Public Spat Between Rep. Jesse White & Range Resources Continues
November 19, 2012November 19, 2012

An article in the Pittsburgh Tribune-Review takes a pretty fair look at the troubles faced by PA State Rep. Jesse White and his attacks on Range Resources. Last week Range released some fairly damning emails in response to White’s attacks that seem to indicate White, who had previously courted Range, turned on them when they didn’t provide enough campaign money and support to his liking. The turning point seemed to be when Range turned down White’s request (which he now says was a joke) for a ride to the Super Bowl on a Range jet (see this MDN story).

Saturday’s Tribune-Review article quotes some in his own (Democrat) party expressing their doubts about White’s actions and words:

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Energy Companies | Exxon Mobil | Industrywide Issues | Taxation

Exxon Mobil Foolishly Backs Obama Carbon Tax Idea
November 16, 2012November 16, 2012

Exxon Mobil is a major disappointment. Since 2009 they’ve supported a so-called “carbon tax” over what they consider a less-desirable alternative—legislation capping carbon dioxide emissions. Carbon dioxide, in case you didn’t know, is the substance you breathe out with every breath you take. Plants breathe it in. Plants, on the other hand, expire oxygen that we animals breathe in—something called the circle of life. Obama and green wackos want to tax carbon dioxide emissions in the misbegotten belief it’s “polluting the planet” and that by taxing it, you will cause its use to go down. (Maybe a tax on breathing will be next?) Boggles the mind.

What boggles the mind even more is Exxon’s support for the idea. A carbon tax is nothing more than a huge, new tax increase that gives greedy politicians more money to play with, reduces manufacturing activity (and jobs at those manufacturers), and overall is about the worst idea anyone has had in oh, about a century.

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Chesapeake Energy | Energy Companies | EnerVest | Gulfport Energy | Lease & Royalty Payments | Meetings | Utica Shale

EnerVest CEO Contradicts McClendon: Utica Oil Will be Big
November 15, 2012November 15, 2012

At the Developing Unconventional Gas (DUG) East Conference in Pittsburgh yesterday, EnerVest CEO John Walker contradicted the view of Chesapeake CEO Aubrey McClendon. McClendon said the Ohio Utica Shale will not produce much oil—at least for Chesapeake (see this MDN story). Walker said he believes the Utica will produce a lot of oil—that is, once they figure out the “right completion method.”

Gulfport’s CEO Jim Palm also spoke glowingly about the Utica at the conference. Gulfport, you may recall, has the highest producing Utica well so far (see this MDN story). The conference is organized by Hart Energy, who provided information stating lease payments in the Ohio Utica Shale have reached as high as $8,000 per acre.

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BP | Commodity Price | Energy Companies | Ethane | Industrywide Issues | NGLs

Industry Expert Says NGL Prices are Headed Down
November 15, 2012November 15, 2012

Dawn Constantin, head of partnerships and analytics at BP plc, spoke at the LDC Gas Forum in Toronto earlier this week about what the future holds for the natural gas liquids (NGLs) market. Her analysis? Drillers who thought NGLs (wet gas) were a safe harbor against the low price of methane (dry gas) may not find it so safe after all. Why? Simple economics of supply and demand. Demand for NGLs is not keeping up with the flood of supply coming from places like the Marcellus and Utica Shale.

Constantin said there now exists downward pressure on the price of NGLs, just like there is for dry gas:

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

Chesapeake Gives Up on Oil in OH Utica Shale, Focuses on NGLs
November 14, 2012November 14, 2012

A big reversal from Chesapeake Energy and their expectations for oil in Ohio’s Utica Shale. Once upon a time the company was ebullient over striking oil in eastern Ohio (see this MDN story, July 2011).

An article in yesterday’s Wall Street Journal quotes Chesapeake CEO Aubrey McClendon as saying their view has changed—the Utica Shale will not be a big oil producer for Chesapeake after all. That doesn’t mean Chesapeake has turned sour on the Utica—quite the contrary. Drilling for natural gas liquids in the Utica by Chesapeake continues at a brisk pace. All the same, McClendon’s statement is a stunning admission and a reversal from previous statements.

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CNX Resources | Dominion Exploration | Energy Companies | Industrywide Issues | Litigation | Ohio | Stark County

Landowners at 2nd OH Gas Storage Field Sue for Right to Drill
November 14, 2012November 14, 2012

MDN previously told you about a lawsuit from landowners who sit atop the Brinker Gas Storage Field in Columbiana County, OH (see this MDN story). Columbia Gas Transmission owns the rights to the hollowed out cavern in the Berea Sandstone known as the Brinker field—a place where they store natural gas for later use. The question or issue is whether or not the landowners have the right to drill under the Brinker, in the Utica Shale, or whether that right belongs to Columbia.

Landowners atop another gas storage field, the North Canton Gas Storage Field in Stark County, OH, have now filed a lawsuit for the same reason. In North Canton the storage field is leased by Dominion East Ohio (a division of Dominion) and CNX Gas (a division of CONSOL Energy). Dominion and CNX claim it’s their right to drill under the storage field—the landowners believe they forfeited the right to drill years ago.

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Allegheny County | Beaver County | Energy Companies | Pennsylvania | Range Resources Corp | Washington County

Why the Blood Feud Between Jesse White & Range Resources?
November 14, 2012November 14, 2012

It’s evident to anyone who follows the news out of Pittsburgh that there is a blood feud, or grudge match—choose your metaphor—between Pennsylvania State Rep. Jesse White (from western PA) and Range Resources. It wasn’t always that way. Just a few short years ago Rep. White and folks at Range were pals. Not anymore.

Range says White is the one who has changed in this relationship and they’ve released a number of emails as “proof.” The friction seemed to start when Range turned down a request by White for a plane ride to the 2011 Super Bowl…

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Chesapeake Energy | Energy Companies | Lease & Royalty Payments | Mahoning County | Ohio | Statewide OH

Lawyer Cautions ALOV Landowners on Revising Signed Leases
November 13, 2012November 13, 2012

At a meeting of the uber-large Associated Landowners of the Valley (ALOV) landowner group last night in Youngstown, Ohio, lawyer Alan Wenger warned the 500 landowners in the audience that landmen are knocking on doors once again, this time asking landowners already signed to modify their leases.

Wenger told landowners what energy companies like Chesapeake are asking for, and what landowners need to consider before signing:

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Economic Impact | Energy Companies | Exxon Mobil | Industrywide Issues

ExxonMobil: Shale Gas is Revitalizing U.S. Petrochemical Industry
November 13, 2012November 13, 2012

At a petrochemical industry conference last week in Philadelphia, a senior ExxonMobil executive said shale gas in general, and the Marcellus Shale in particular, is revitalizing the petrochemical industry in this country.

Comments from Lynne Lachenmyer, senior vice president, ExxonMobil Chemical Company:

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Energy Companies | EnerVest | EV Energy Partners | Ohio | Statewide OH

EV Energy Selling 539K Utica Shale Acres by Dec 31
November 12, 2012November 12, 2012

EV Energy Partners, part of EnerVest Ltd., is in the final stages of a deal to sell its interest in 539,000 Utica Shale acres in Ohio, according to EV founder and chairman John Walker. (See this MDN story for background on how EV amassed such a large stake in the Utica.) When the final deal is done, it may bring in as much as $6 billion for EV.

Here’s what we know about the deal and what motivated it, from an investors call with Walker on Friday:

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Energy Companies | Halcon Resources | Mercer County | Ohio | Pennsylvania | Trumbull County | Utica Shale

Halcon Drills First Utica Well in Trumbull County, OH
November 12, 2012November 12, 2012

One month ago Halcon Resources purchased Carrizo Oil & Gas’ northern Utica Shale acreage (15,000 acres) for $43 million (see this MDN story). Halcon is not letting any grass grow under their feet. They are already working on their first Utica Shale well—preparing the site—in Trumbull County, OH. When completed, it will be the first active Utica Shale well in the county:

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Energy Companies | Halcon Resources | Ohio | Trumbull County

Landowner Group Forms in Trumbull County to Field Halcon Offers
November 12, 2012November 12, 2012

Very important for landowners in and around Trumbull County, Ohio: Halcon Resources, which took possession of some 31,000 acres of 20-50 year old gas drilling leases in northeastern Ohio, is approaching landowners about amending their leases to allow drilling in the Utica Shale. It’s a good opportunity for landowners to make money from drilling, but also a good opportunity to negotiate new protections.

A new landowner group has just formed in Lordstown, OH to help landowners navigate the offers being made by Halcon:

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Belmont County | Energy Companies | Guernsey County | Gulfport Energy | Harrison County | Ohio | Statewide OH | Utica Shale

Gulfport CEO Says Company’s Future is the Utica Shale
November 12, 2012November 12, 2012

On a conference call last week, Gulfport Energy’s CEO James Palm called the Utica Shale a “once-in-a-lifetime play … and a company changer.” He said the company plans to invest $225 million next year in Ohio’s Utica Shale to drill 50 new wells. The eventual goal? They plan to drill 400 Utica Shale wells in the next four years.

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Energy Companies | Rex Energy

Rex Energy 3Q12: Income Up, First Utica Well Pumps 70% NGLs
November 12, 2012November 12, 2012

Last week Rex Energy Corporation reported its third quarter financial and operating results. Among Rex’s notable results: The company’s first Utica Shale well averaged a 30-day sales rate of 731 Boe/d (70% Liquids). Counter to many other energy companies, Rex’s 3Q12 revenues were up 14% from the same period last year.

Below are relevant sections of the Rex 3Q12 update:

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