The latest permits issued in Mahoning, Harrison, Portage and Monroe counties in Ohio:
Read More “ODNR Issues New Permits in Mahoning, Other OH Counties”
The Columbiana County Port Authority (Ohio) voted last night to lease some Port Authority land to Chesapeake for shale gas drilling. Here’s the terms of the deal:
Read More “Columbiana Port Authority Votes to Lease Land to Chesapeake”
Quebec, Canada currently has a moratorium in place on fracking shale for oil and natural gas, similar to New York State. They were due to consider lifting the ban in 2014 with recommendations from a study on how to proceed with fracking, but those hopes were pretty much destroyed last week when a member of the new “separatist” government in Quebec, Natural Resource Minister Martine Ouellet, said the government will not lift the ban any time soon and added she believes fracking cannot ever be done safely.
Part of the Utica Shale underlies Quebec, which is why this is a story of interest to MDN. Questerre Energy, a large Canadian driller, issued a press release about the Quebec situation, saying continuance of the moratorium will not affect them—but they are disappointed in Ouellet’s position. They also say, in their polite Canadian way, that Quebec is hypocritical because they import a lot of shale gas from Western Canada—gas created using the very same “unsafe” fracking technology:
Read More “Questerre Energy Points Out Quebec’s Hypocrisy on Fracking”
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:
Read More “Still No Decision on Drilling Near Wheeling Park High School”
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.
Read More “French Company Total Says “Non, Merci” to More Utica Shale”
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?
Read More “Halcon Says No Drilling for Half of Mercer County Landowners”
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:
Read More “PDC Energy will Go-it-Alone with Utica Shale Drilling”
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:
Read More “Crawford County, PA Sees First Utica Shale Well Drilled”
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:
Read More “Spotlight: Hilcorp Energy’s Sole (Billionaire) Shareholder”
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:
Read More “Hess Buys NatGas Contracts Division of Delta Energy”
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:
Read More “EnerVest Puts 539,000 Utica Shale Acres on Auction Block”
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…
Read More “Columbia Gas & Hilcorp Meet with Landowners in Brinker Field”
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):
Read More “CNX Gas Starts Utica Well in Meander Reservoir Watershed”
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”
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:
Read More “Chesapeake Sells Permian Basin, Midstream Assets for $6.9B”
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”