Energy Companies

Chesapeake Energy | Energy Companies | Ohio County | West Virginia

Still No Decision on Drilling Near Wheeling Park High School
September 24, 2012September 24, 2012

Chesapeake Energy, the only driller with active operations in Ohio, Brooke or Hancock counties, wants to site a drill pad about 1,300 feet from the Wheeling Park High School (in Ohio County, WV). The school doesn’t like the plan. A decision has still not been made, but is under review by the state Dept. of Environmental Protection (DEP).

Is it a good idea? Bad idea? Depends on who you ask:

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

French Company Total Says “Non, Merci” to More Utica Shale
September 24, 2012September 24, 2012

In December 2011, French energy giant Total purchased a 25 percent ownership stake in Chesapeake Energy’s Ohio Utica Shale leases for 10 Ohio counties for $2.3 billion. In May, Total paid Chesapeake another $2 billion for a 90% stake in 9,000 leases in Columbiana County, OH (see this MDN story).

It seemed like Total was going full speed ahead with purchases of shale acreage in the Utica Shale. Not any more.

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Energy Companies | Halcon Resources | Lease & Royalty Payments | Mercer County | Pennsylvania

Halcon Says No Drilling for Half of Mercer County Landowners
September 20, 2012September 20, 2012

About the half the landowners in Mercer County, Pennsylvania who signed leases with Halcon Resources (via CX Energy) to allow shale gas drilling on their property found out Monday night that Halcon is not exercising their lease options. The other half found out Halcon will go forward with drilling on their property.

What happened?

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Energy Companies | Guernsey County | Ohio | PDC Mountaineer | Utica Shale | Washington County (OH)

PDC Energy will Go-it-Alone with Utica Shale Drilling
September 19, 2012September 19, 2012

PDC announced today they will “go it alone” and develop 45,000 acres of Utica Shale leases they own in southeastern Ohio without a joint venture partner. Apparently the offers they received weren’t good enough, so they’re committing $50 million to drilling efforts in the Utica in their 2013 budget.

Early results for PDC have been promising. They report drilling two wells in Guernsey County, OH. They plan to drill a third Utica well later this year in Washington County. Here’s the press release outlining early results, and their Utica plans for the next 12 months:

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Crawford County | Energy Companies | Pennsylvania | Range Resources Corp

Crawford County, PA Sees First Utica Shale Well Drilled
September 19, 2012September 19, 2012

Although there’s plenty of conventional, shallow gas wells in Crawford County (in the northwestern corner of Pennsylvania), the very first unconventional, horizontal well has just been drilled in the Utica Shale in Crawford County. Starting as soon as today, it will be fracked.

Here’s the details:

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Energy Companies | Hilcorp Energy

Spotlight: Hilcorp Energy’s Sole (Billionaire) Shareholder
September 18, 2012September 18, 2012

Hilcorp Energy has been on the radar screen a number of times recently. The energy company is heavily involved with both drilling and midstream activity in the Ohio Utica Shale. The first mention of Hilcorp on MDN was in July 2012 when NiSource announced they were forming a joint venture with Hilcorp by combining Utica Shale acreage allowing Hilcorp to do the drilling (see this MDN story). A pipeline being built by NiSource and Hilcorp is about to start construction in Ohio (see this MDN story). And just yesterday, MDN told you about the latest developments in the Brinker Storage Field area of Ohio, involving Columbia Gas and Hilcorp (see this MDN story).

Just who and what is Hilcorp? Surprisingly, Hilcorp, a privately-owned company, is owned by a single shareholder: Jeffrey Hildebrand. According to a new article in Forbes magazine, Hildebrand is “uber-private” and very wealthy. The article shares a few other bits of information about the company and Mr. Hildebrand that MDN thought you would find interesting:

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Energy Companies | Hess | Ohio | Statewide OH

Hess Buys NatGas Contracts Division of Delta Energy
September 18, 2012September 18, 2012

Energy giant Hess Corp. announced yesterday it is buying the natural gas marketing division of Delta Energy. Delta is based in Dublin, Ohio. What Hess is buying are energy contracts—the right to sell natural gas to a certain list of commercial and industrial customers. Hess is a huge company with operations that span upstream (drilling new wells) to midstream (pipelines, processing and terminals) to downstream (selling oil and gas to end user customers). Hess owns leases for 185,000 Utica Shale acres in Ohio and seems to be making moves to increase its presence in the state for all of its operations.

More on the Hess purchase from Delta:

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Energy Companies | EnerVest | Ohio | Statewide OH

EnerVest Puts 539,000 Utica Shale Acres on Auction Block
September 17, 2012September 17, 2012

EnerVest has put leases for 539,000 Utica Shale acres in Ohio on the auction block and hopes to get more than $6 billion dollars for it. That would be something north of $11,000 per acre. Pretty optimistic, but hey, you never know!

Apparently EnerVest is the accidental energy company who just happened to amass a 3/4 of a million acres of leases some time ago and now wants to take advantage by selling some of it. From the Wall Street Journal:

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Columbia Pipeline Group | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Lease & Royalty Payments | Litigation | Ohio

Columbia Gas & Hilcorp Meet with Landowners in Brinker Field
September 17, 2012September 17, 2012

More than 50 years ago, landowners in a 35,000 acre area of Columbiana County, Ohio signed a lease with Columbia Gas that allows Columbia to store natural gas supplies in the Berea Sandstone formation. Known as the Brinker property back then, today it’s referred to as the Brinker Storage Field. The lease that was signed, and passed on to new landowners purchasing “Brinker” property, means landowners won’t see a penny from drilling that’s about to begin on their property by Hilcorp Energy (see this MDN story for more background). Columbia Gas will keep all of the signing bonus and royalty money for itself. Unless…

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CNX Resources | CONSOL Energy | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio

CNX Gas Starts Utica Well in Meander Reservoir Watershed
September 14, 2012September 14, 2012

The third Utica Shale well to be drilled in Mahoning County, Ohio is set to begin any day now. The well is being drilled by CNX Gas (subsidiary of CONSOL Energy). While the fact that a new well is being drilled may not seem like news (it’s the third well to be drilled in Mahoning County), where it’s being drilled in the county is big news: in the watershed of the Meander Reservoir, which provides drinking water to 300,000 people in the Mahoning Valley.

When completed, this will be a great example of the fact that drilling and fracking is safe—even in watershed areas (pay attention New York):

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Energy Companies | EOG Resources | Noble Energy | Pennsylvania | Statewide PA | Talisman Energy

Drillers Talk about Marcellus Advantage over Other Shales
September 14, 2012September 14, 2012

Interfax Energy’s Natural Gas Daily ran a highly interesting and useful article on the advantages of the Marcellus Shale, why it’s attracting capital investments, along with who is ramping up and who is scaling back drilling in the Marcellus.

Among the points made in the article:

Read More “Drillers Talk about Marcellus Advantage over Other Shales”
Chesapeake Energy | Chevron | Energy Companies | Energy Services | EnerVest | Global Infrastructure Partners | Shell | SWEPI

Chesapeake Sells Permian Basin, Midstream Assets for $6.9B
September 12, 2012September 12, 2012

Although we’ve known for a while that the embattled Chesapeake Energy has been shopping some of it’s shale basin and other assets in order to pay down debt, they’ve made a huge announcement today. Chesapeake has sold most of its Permian Basin acreage along with “substantially all of its midstream” assets for $6.9 billion. The buyers for the Permian were Shell, Chevron and EnerVest. Most of Chesapeake’s remaining midstream assets were sold to Global Infrastructure Partners (GIP).

Chesapeake previously announced they would sell off assets in areas where they were not number one or two in an attempt to repay loans and concentrate their drilling in core areas. Two of the core areas where Chesapeake is sticking around are the Marcellus and Utica Shale.

From the Chesapeake Energy press release:

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Antero Resources | Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Utica Shale

Barnesville, OH Signs Lease with Antero, Receives $6M
September 12, 2012September 12, 2012

The Village of Barnesville, OH (Belmont County) just signed a lease with Antero Resources to allow shale drilling on 1,047 village-owned acres. The village now has an additional $6 million in revenue because of it.

Here’s the details about the deal, including the per-acre price and royalty percentage (some of the highest we’ve seen):

Read More “Barnesville, OH Signs Lease with Antero, Receives $6M”
Energy Companies | Gale Force Petroleum | Marshall County | West Virginia | Wetzel County

Gale Force Petroleum Marcellus Update for 2 WV Counties
September 12, 2012September 12, 2012

Gale Force Petroleum issued an operations update today about their Marcellus drilling activities in Wetzel and Marshall counties in West Virginia. Gale Force says the wells they’ve drilled, in wet gas areas, are producing in excess of 60 barrels of oil equivalent per day (BOEPD) of natural gas liquids in the Marcellus. They expect that number to grow.

Gale Force also says they’ve drilled 15 wells to date and have plans to drill another 50-100 wells on the 10,000 acres they’ve leased over the next three years. From the Gale Force press release:

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Carrizo Oil & Gas | Energy Companies | Industrywide Issues | Pennsylvania | Statewide PA | Taxation

Carizzo’s Missing Impact Fee Payment – Scofflaw?
September 11, 2012September 11, 2012

Yesterday the Pennsylvania State Public Utility Commission (PUC), the agency in charge of assessing and collecting the new Marcellus Shale Impact Fee, released the figures showing which drillers were assessed the fee, the number of both vertical and horizontal wells they drilled, and most importantly, how much they were assessed and how much they’ve paid (see this MDN story).

One particular company stands out among the list: Carizzo Oil & Gas. They stand out because the PUC says they’ve paid exactly $0 of the $3,060,000 they owe in impact fees. The The Harrisburg Patriot-News calls them a scofflaw and chronicles the back and forth they’ve had with both Carrizo and the PUC over the missing payment:

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Energy Companies | Southwestern Energy

Southwestern Selects the Marcellus to Fuel Future Growth
September 11, 2012September 11, 2012

More great analysis from Richard Zeits. Writing on the Seeking Alpha website, Zeits looks in-depth at Southwestern Energy and their plans for the Marcellus Shale. Southwestern’s CEO, Steven Mueller, spoke at length at an industry conference last week about his company’s plans for the rest of this year and next. Zeits took great notes and he re-creates much of that presentation.

Southwestern has a huge position in the Fayetteville Shale basin, so it may surprise some that the Marcellus, where Southwestern had zero production just a year and a half ago, is the horse they’ve selected to ride for future growth. Zeits’ analysis of Mueller’s presentation starts this way:

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