Energy Companies

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

Pittsburgh Airport Leases Land to CONSOL
December 17, 2012July 3, 2018

We have to wonder, was the fix in at the Pittsburgh Airport? MDN told you two weeks ago about the opening for two bids to drill on and under property owned by the Allgheny County Airport Authority (see this MDN story). EQT offered more than twice the per-acre signing bonus of CONSOL Energy. EQT’s bid to drill on 9,263 acres was $44 million!

On Friday, the Airport Authority announced that after two weeks of “very, very careful review” it has accepted CONSOL’s bid of $20.8 million as the representing the “best value.” Huh?

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

The Secret to Gulfport’s OH Utica Drilling Success
December 17, 2012December 17, 2012

An excellent article on the Youngstown Business Journal website from Saturday delves into the question of why Gulfport Energy has (so far) turned in the most impressive results of all Utica Shale drilling in Ohio (see this MDN story for background on their success). Gulfport CEO Jim Palms credits better science and a little of luck for their astonishing success.

The real secret as to why Gulfport’s wells in Harrison and Belmont counties are doing so much better than counties farther north, like Carroll and Columbiana? It has to do with pressure…

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Chesapeake Energy | Energy Companies

Chesapeake Offers Buyout to 275 Older Employees
December 17, 2012December 17, 2012

Calling it a potential “benefit” for longer-term employees to cash in on their years of service, Chesapeake Energy on Friday announced a “voluntary separation program” to get rid of 275 older employees by February 2013. At least that’s MDN’s understanding after reading the official company announcement:

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Chesapeake Energy | Columbiana County | Energy Companies | Energy Services | EnerVest | Industrywide Issues | M3 Midstream | NGLs | Ohio | Processing Plants

Columbiana County NGL Plant On Track for May Opening
December 17, 2012December 17, 2012

An update on the excellent progress being made with the construction of a new $400 million natural gas liquids collection and processing plant being built in Hanoverton (Columbiana County), Ohio by M3 Midstream:

Read More “Columbiana County NGL Plant On Track for May Opening”
Chesapeake Energy | Energy Companies | Gulfport Energy | Ohio | Statewide OH

Chesapeake Admits Misjudging Ohio Utica Sweet Spot
December 14, 2012December 14, 2012

The Utica Shale is still in its infancy and drillers are still trying to get a fix on the “sweet spots” that will produce the most natural gas, gas liquids and even oil. Rendering an opinion on the best places to drill can be a career-ender, like it was for one long-time ODNR employee (see this MDN story).

Chesapeake was the early mover in Ohio’s Utica Shale, and it’s still the biggest driller in Ohio. However, we have an interesting admission from Chesapeake this week: They’ve misjudged the “emerging fairway” of the Utica in Ohio. While Chesapeake is concentrating most of their drilling in Carroll and Columbiana counties in the northern part of the state, Gulfport has drilled the four highest-producing wells in the Utica in counties to the south.

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Carroll County | Chesapeake Energy | Energy Companies | Harrison County | Hilcorp Energy | Lawrence County | Noble Energy | Ohio | Pennsylvania | R.E. Gas Development

Latest Round of Drilling Permits Along PA/OH Border
December 13, 2012

Hilcorp received a permit last week from the PA Dept. of Environmental Protection (DEP) to drill its 18th Utica Shale well in Lawrence County, PA. Meanwhile, Chesapeake, Noble and R.E. Gas Development received permits last week from the Ohio Dept. of Natural Resources (ODNR) to drill six new shale wells in Carroll and Harrison counties.

The details of who is drilling and where:

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Economic Impact | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Jobs | Mahoning County | NiSource | Ohio | Pipelines | Processing Plants

Mahoning Utica Pipeline/Processing Plant “Moving Forward”
December 13, 2012December 13, 2012

Back in July, MDN told you about a new joint venture between Hilcorp and NiSource to build a wet gas pipeline and processing plant in the Youngstown, Ohio area (see this MDN story). There is still no official location (yet) for the new project, which will cost between $300 and $500 million to build, but we now have a name for it: the Hickory Bend Pipeline System.

According to a NiSource spokesperson, Hickory Bend (the pipeline and the processing plant) is “moving forward.” What does that mean? It means the Mahoning Valley will soon see a big boost in jobs for construction workers and welders:

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Energy Companies | Range Resources Corp

Range Resources Selling Permian to Concentrate on Marcellus
December 13, 2012December 13, 2012

Range Resources issued their 2013 plans yesterday. Range plans to spend $1.3 billion next year, 85% of which will be spent on drilling in the Marcellus and Mississippian Shale plays. Range owns 500,000 acres of leases between the Marcellus and Mississippian. The focus in 2013 will be on wet gas, which means Range will reduce the rigs they use in northeastern Pennsylvania from the current four to five rigs down to one rig next year.

Range is selling some of its Permian Basin assets in New Mexico and Texas to help fund next year’s drilling budget.

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Access Midstream Partners | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | NGLs | Pipelines | Processing Plants | Williams

Chesapeake, Access & Williams in Complex 3-Way Midstream Deal
December 12, 2012December 12, 2012

Chesapeake Energy has sold off its remaining midstream operations (pipelines, compressors and processing plants) to Access Midstream Partners for $2.16 billion. The sale includes Chesapeake’s midstream assets in the Marcellus and Utica Shale region, along with assets in the Eagle Ford, Haynesville and Niobrara shale plays.

At the same time (keep your eye on the bouncing ball here), midstream giant Williams paid $2.4 billion to buy a 50% stake in Access Midstream. That is, the two deals are connected—Chesapeake to Access, Access to Williams. On paper, Chesapeake sold its midstream properties to Access, but it practice it seems the sale was actually to Williams via Access Midstream. In addition, Williams announced that Chesapeake is “supporting” their effort to build a natural gas liquids (NGL) pipeline from the Marcellus/Utica area to the Gulf Coast.

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BP | Columbiana County | Energy Companies | Ohio | Utica Shale

BP Continues to Expand in Ohio’s Utica Shale
December 12, 2012December 12, 2012

BP continues to expand its footprint in Ohio’s Utica Shale. Lately, the company has been purchasing leases in Columbiana County:

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Energy Companies | Guernsey County | Ohio | PDC Energy | PDC Mountaineer | Statewide OH | Utica Shale

PDC Energy: Production from 1st Utica Well, 2013 Forecast
December 12, 2012December 12, 2012

PDC Energy issued their 2013 forecast yesterday, along with an impressive production report on their first Utica Shale well, drilled in Guernsey County, OH. They plan to spend $53 million next year to drill and complete five horizontal Utica Shale wells in Ohio. Part of that budget will also be spent on additional acreage to lease—acreage contiguous to their existing leased acreage. (Landowners who are not yet leased, here’s an opportunity for you.)

PDC also has a joint venture in the Marcellus Shale and plans to allocate $48 million for its 50% share toward drilling and completing 14 wells and certain midstream infrastructure projects (pipelines/processing) .

Read More “PDC Energy: Production from 1st Utica Well, 2013 Forecast”
Alternative Energy | Energy Companies | Exxon Mobil | Industrywide Issues | Research

ExxonMobil Predicts World Fossil Fuel Usage Up 5% by 2040
December 12, 2012December 12, 2012

ExxonMobil, not only the world’s largest energy company but the world’s largest company period by revenue, publishes an annual Outlook for Energy. Yesterday they issued the 2013 edition (embedded below). The annual publication is an inside look at how some of the world’s keenest minds in energy view what’s coming down the road for energy over the next 30 years.

A few (very interesting) highlights from this year’s edition:

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Energy Companies | Pennsylvania | Shell | SWEPI | Warren County

Marcellus Permits Nearly Double in Warren County, PA
December 11, 2012December 11, 2012

Over the past decade, 11 permits for horizontal Marcellus Shale drilling have been issued in Warren County, PA: Range Resources got 6 of those permits, PA General Energy got 4 of them, and Hunt Marcellus Operating received 1 permit.

The number of permits has now almost doubled in Warren. SWEPI LP recently received 10 permits to drill—all of them for the Hook Run Farm in Mead Township.

Read More “Marcellus Permits Nearly Double in Warren County, PA”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | New York | Norse Energy | Regulation | Statewide NY

Norse Energy Hurt by NY Fracking Delay Files for Bankruptcy
December 10, 2012December 10, 2012

Contrary to what anti-drillers say, lack of drilling in New York does have serious consequences—the latest consequence being the bankruptcy of Norse Energy Corp. MDN has reported over the past several years on Norse, the “little energy company that could” (we had hoped) hang on until New York released new shale drilling rules. But New York’s moratorium has now stretched on nearly 4 1/2 years and frankly, there’s no end in sight.

In mid-November Norse issued a press release saying they would run out of money in December unless they could restructure their debt (see this MDN story). They only had $1.5 million cash on hand at the time. Then, a few weeks later, a judge ordered Norse to put $7.65 million into an escrow account to cover potential losses in a dispute (see this Norse press release). Apparently the escrow judgment pushed Norse over the financial cliff. They’ve now filed for Chapter 11 bankruptcy protection:

Read More “Norse Energy Hurt by NY Fracking Delay Files for Bankruptcy”
Chesapeake Energy | Columbiana County | Energy Companies | Ohio | Utica Shale

Utica Shale Drilling in Columbiana County, OH Slows
December 10, 2012December 10, 2012

Is Columbiana County, Ohio’s Utica Shale drilling cooling down? That’s what a recent article seems to indicate. There were only two new permits sought in the past month, both from Chesapeake Energy.

Here’s the lowdown on Columbiana’s drilling activity since 2010:

Read More “Utica Shale Drilling in Columbiana County, OH Slows”
Carroll County | Chesapeake Energy | Energy Companies | Energy Services | Industrywide Issues | Ohio | Statewide OH | Tervita | Wastewater

Chesapeake Hires Tervita Corp to Build OH Wasterwater Plant
December 7, 2012December 7, 2012

Calgary-based Tervita Corporation, an environmental and energy services company, has been selected by Chesapeake Energy to build a wastewater treatment facility in Carroll County, OH. Carroll is the epicenter of Chesapeake’s drilling in the Ohio Utica Shale. The facility will be used to recycle drilling wastewater from Chesapeake’s Utica drilling, as well as other water-related services.

From the Tervita press announcement:

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