Energy Companies

Energy Companies | Energy Services | Industrywide Issues | Pennsylvania | Pipelines | Potter County | Tenaska Resources | Tioga County (PA) | UGI Energy Services

UGI & Tenaska Sign Deal to Build New Marcellus Pipeline in PA
January 15, 2013January 15, 2013

Pennsylvania electric & gas utility UGI Corporation announced yesterday they’ve cut a deal with driller Tenaska Resources to jointly develop Marcellus Shale projects in both Potter and Tioga counties in north-central PA. Over the next 10 years UGI will invest $65 million to build a new gathering pipeline system in Potter County, and another $25 million investment in return for a 19% interest in Tenaska’s Tioga County acreage/operations.

From the UGI announcement yesterday:

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Encana Energy | Energy Companies

Encana Interim CEO Says Company is Not For Sale
January 15, 2013January 15, 2013

Canadian’s largest natural gas driller and a major player in the Marcellus Shale, Encana Corp, announced on Friday that CEO Randy Eresman and resigned and left the company. The announcement was “out of the blue” and caught investors and industry insiders by surprise.

Encana appointed board of directors member Clayton Woitas (former CEO of Renaissance Energy) as interim CEO, a move which some speculate means the company may be up for sale. That rumor, however, is roundly refuted by Woitas:

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Accidents | Cuyahoga County | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Mountaineer Keystone | Ohio

Methane Migration into Water Well Near Cleveland, OH
January 14, 2013January 14, 2013

It seems possible, and from the reporting, even likely, that shale gas drilling (and fracking) has caused methane migration and “contamination” of a water well for a family that lives outside Cleveland, OH.

Below is the story as reported by the Washington Examiner. The family’s water was tested before drilling was begun by Mountaineer Keystone and there was methane present in the water, but at the safe level of 9 parts per million. Now, after nearby drilling? There’s 22 PPM in their water, and they can (yes) light their faucets on fire, just like in the notoriously inaccurate movie Gasland…

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CONSOL Energy | Energy Companies

CONSOL Energy’s 2013 Plan: Spend Lots on Marcellus & Utica Shale
January 14, 2013January 14, 2013

CONSOL Energy today released it’s spending and operations plans for 2013. Among them: They will spend $600 million to continue developing their Marcellus Shale operations, of which $415 million will go for drilling new wells. They plan to drill 126 new Marcellus wells this year, 90 of them in the liquids-rich portion of the play. CONSOL also plans to spend $122 million on their joint venture with Hess to drill 27 new wells in the Utica Shale.

Today’s CONSOL announcement:

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Chesapeake Energy | Columbiana County | Energy Companies | Lease & Royalty Payments | Ohio | Utica Shale

Utica Shale Drilling Heats up in Middleton Twp, OH
January 14, 2013January 14, 2013

Utica Shale drilling is heating up in Middleton Township (Columbiana County), Ohio.

Here’s the details on the one Utica Shale well now drilled in Middleton, the four coming soon, and how much the town was paid by Chesapeake Energy to lease six acres of town land:

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

Location of Second Halcon Utica Well in Trumbull County, OH
January 10, 2013January 10, 2013

Halcon Resources continues their rapid pace of new drilling in Trumbull County, Ohio. MDN recently told you that the very first horizontal Utica Shale well to be drilled in Trumbull is now under way by Halcon in Hartford township (see Trumbull County’s First Utica Shale Well Now in Process).

Looks like Lordstown will be the location for the second Trumbull County well to be drilled by Halcon. Here’s exactly where in Lordstown:

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Lario Oil and Gas | Ohio | Statewide OH | Trumbull County | Utica Shale

New Driller Enters Eastern Ohio’s Utica Shale
January 10, 2013January 10, 2013

Trumbull County, Ohio apparently has a new driller. No permits have been issued yet, but local land deeds show that Lario Oil and Gas, a Kansas-based company, has leased the mineral rights for “hundreds of acres” in Newton Township. They say they have leased thousands of acres in eastern Ohio:

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

Hess Announces 2013 Plans, Includes Ohio Utica Drilling
January 10, 2013January 10, 2013

Hess Corporation announced its plans for 2013 yesterday. Among those plans—drill a lot more unconventional (i.e. shale) wells. Some of the drilling they’ve budgeted for 2013 includes “appraisal wells” in the Ohio Utica Shale.

From the Hess announcement:

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Atlas Energy | Energy Companies

Atlas Resource Partners – Drilling Plans for 2013
January 10, 2013January 10, 2013

Atlas Resource Partners, an exploration & production master limited partnership which owns an interest in over 10,100 producing natural gas and oil wells, primarily in the Marcellus/Utica Shale region in the northeast, and the Barnett Shale in Texas, released an update yesterday on their drilling and hedging plans for 2013.

From the announcement:

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eCORP International | eCORP Stimulation Technologies | Energy Companies | Energy Services | Hydraulic Fracturing | Industrywide Issues

eCORP Tests New Waterless LPG Fracking Method on First Shale Well
January 9, 2013January 9, 2013

Last year MDN told you about a deal in Tioga County, NY between landowners with 135,000 acres and drilling company eCORP to use liquefied petroleum gas (LPG, or propane) fracking as an alternative to water-based fracking. The deal, which had a complicated structure with the landowners as part-owners of the venture, fell apart (see Tioga County, NY Lease Deal with eCORP Falls Apart). One of the interesting aspects of that story is that by using a non-water-based fracking method, eCORP may have been able to proceed with drilling ahead of New York’s much-delayed new fracking regulations. However, that theory never came to a test.

Here’s the new news: eCORP was going to use GASFRAC’s LPG fracking technology in Tioga County. Since that time, a newly formed subsidiary of eCORP called eCORP Stimulation Technologies has developed its own LPG fracking technology that uses 100% propane and zero chemicals or additives of any kind. eCORP fracked the very first shale well with the new technology in December…

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Chesapeake Energy | Energy Companies

Chesapeake’s CEO McClendon Will Not Get a $1.95M Bonus for 2012
January 9, 2013January 9, 2013

In a regulatory filing on Monday, Chesapeake Energy said it will not pay CEO Aubrey McClendon a bonus for 2012. Since 2009 he’s received a $1.95 million bonus each year. But the company had a tough year in 2012 with the revelation that some of McClendon’s financing deals were a bit sketchy. Too, the stock price for the company took a real tumble in 2012 because of a lot of debt, and the company’s chief asset—the ability to produce natural gas—suffered from the low commodity price for natgas. Chesapeake ended up selling off many assets to pay down their debt. Throw it all in the pot and Aubrey had a lot of Excedrin headaches last year.

What we know about the recent regulatory filing, and a quick recap of Chesapeake’s tough year in 2012:

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Cayuga County | Chesapeake Energy | Energy Companies | Minard Run Oil | New York | Seneca County

PA Driller Buys Land, Wells from Chesapeake–in NY Finger Lakes
January 8, 2013January 8, 2013

A small independent exploration and production company from Bradford, PA—Minard Run Oil Co.—has just picked up 56,130 acres of leases, 200 miles of pipelines, compressor stations, and 413 natural gas wells—all located in the Finger Lakes region of New York. They purchased the assets from Chesapeake Energy for an undisclosed amount. According to Minard, Chesapeake was “a willing seller,” which kind of feels to MDN like it was a “fire sale” on the part of Chesapeake to get a little more cash on the books before the close of 2012.

For now, Minard plans to continue vertical-only drilling and drill another 20-30 wells in 2013. The company did not mention any plans for horizontal fracking in the future.

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Chesapeake Energy | Energy Companies | Ohio | Pennsylvania | Statewide OH | Statewide PA

Chesapeake’s Drilling Security – A Serious Business
January 7, 2013January 7, 2013

Chesapeake Energy takes security in and around it’s drill sites seriously—so much so they employ 24 full-time security officers to conduct roving patrols in an eight-county region in eastern Ohio and western Pennsylvania.

Security for Chesapeake, however, involves far more than driving by a drill site and rattling a chained fence…

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Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | Pipelines | Williams

NC Utility Signs Deal with Cabot for PA Marcellus Gas
January 4, 2013January 4, 2013

Piedmont Natural Gas, a natural gas utility based in North Carolina, has just signed a 15-year contract with Cabot Oil & Gas to buy a “meaningful portion” of its natural gas supplies from the Pennsylvania Marcellus Shale starting in 2015.

Although the details of the agreement are confidential, Piedmont’s CEO did share the following on an investor’s call yesterday:

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

OH Utica Leasing Agent’s Acreage Grows to 1/4 Million
January 4, 2013January 4, 2013

In July MDN told you about Encore Energy, a horizontal well operator formed last year and headquartered in Bowling Green, Kentucky, that’s acting as a leasing agent for a large tract of Utica Shale acreage. At the time they advertised they “have access to” 175,000 acres in Ohio (see Encore Energy Shopping 175K Utica Shale Acres in OH). That number has grown. Encore is advertising they have now have access and rights to lease a quarter of a million acres in the Ohio Utica.

Wanting to remind drillers they’re still around and have land deals to lease, they issued another press release on Wednesday:

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Blue Ridge Mtn Res/Magnum Hunter | Eclipse Resources | Energy Companies | Monroe County | Ohio | Triad Hunter

Two Fierce Competitors Join Forces to Drill in OH Utica Shale
January 3, 2013January 3, 2013

Drilling company Magnum Hunter Resources announced a joint operating deal yesterday with Eclipse Resources to drill 12 Marcellus and 12 Utica Shale wells on 1,950 acres in Monroe County, OH over the next three years. Both companies together will invest $200 million in the program.

The reason for the partnership between these fierce competitors? According to Magnum Hunter, it’s due to the “treacherous terrain in this region” of the state. They want to pool resources and keep costs down. Of course, it also helps that Eclipse will start using Magnum’s pipeline system (Eureka Hunter Pipeline), providing more revenue for the midstream area of the business.

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