Energy Companies

Anschutz Exploration | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | New York | Norse Energy | Otsego County | Regulation | Statewide NY | Tompkins County

Important Developments in NY Fracking Ban Court Cases
October 18, 2012October 18, 2012

There’s been an important development in two cases on appeal in New York State courts that challenge municipal bans of fracking. The two cases challenge municipal fracking bans in the Town of Dryden, NY (see this MDN story for background) and the Town of Middlefield, NY (see this MDN story for background).

According to lead attorney Tom West, all the necessary paperwork for both cases has been filed (called “perfecting” the case). West believes both cases will make it onto the Appellate Division of the Supreme Court docket for an early February hearing of oral arguments. The Appellate Division typically issues an opinion 6-8 weeks following oral arguments, so we should have a decision by late spring. In addition and of keen interest, the plaintiff in one of the cases has changed.

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Chesapeake Energy | Economic Impact | Energy Companies | Industrywide Issues

Top 20 U.S. Natural Gas Producers
October 18, 2012October 18, 2012

MDN highlighted part one of a new series of articles appearing on the Seeking Alpha website on the topic of rig counts and what they see as a coming natural gas shortage (see this MDN story). The series continues with part two. Of keen interest in the second installment is a slide from a Chesapeake Energy presentation showing the top 20 U.S. natural gas producers (based on production volume) with columns showing how many rigs they’re running and the percentage change in the number of rigs from January of 2010 to September 2012. Most startling is Chesapeake’s own rig count, which has gone from 110 active rigs in 2010 to just 9 at the end of September 2012—a 92% reduction. Wow!

There’s a lot of great detail in this chart. Here it is (click on the chart for a larger view):

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BP | Energy Companies | Ohio | Trumbull County

BP Says They’re Committed to Drilling in Trumbull County, OH
October 17, 2012October 17, 2012

Although Carrizo Oil & Gas and CONSOL Energy have both either left or stopped drilling in the Utica Shale in Trumbull County, Ohio, energy giant BP says they’re staying the course and expect to drill their first well in Trumbull in April 2013. Of course, BP has a vested interest in making it work in Trumbull—they leased 80,000 acres in the county last year for $331 million.

Here’s what a BP spokesman recently said about Trumbull County:

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Carrizo Oil & Gas | Crawford County | Energy Companies | Halcon Resources | Mercer County | Ohio | Pennsylvania | Statewide OH | Trumbull County

Mystery Buyer of Carrizo’s Northern Utica Acreage Revealed
October 16, 2012October 17, 2012

Yesterday MDN reported that Carrizo Oil & Gas had sold off it’s interest in lease acreage in Ohio’s northern Utica Shale region for $43 million (see this MDN story). Carrizo did not identify the buyer, but the enterprising Youngstown Business Journal did.

Here’s who it is:

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Coterra Energy (Cabot O&G) | Energy Companies | Ohio | Statewide OH

Carrizo Exits Northern Utica Shale, Retains Southern Acreage
October 15, 2012October 17, 2012

Carrizo Oil & Gas announced today it has sold its interest in the northern portion of the Utica Shale play—in Mercer and Crawford counties in Pennsylvania and Trumbull County in Ohio—for $43 million in cash (see the map below). Carrizo’s press release does not identify who purchased the lease interest in the northern Utica. Carrizo also does not say how many net acres are represented in the sale, although an MDN story from Oct. 2011 says the initial deal Carrizo signed included 15,000 acres (see this MDN story).

Carrizo has not, however, completely exited the Utica Shale. Far from it. They retain an interest in an additional 26,000 acres in the southern part of the Utica Shale play—in Guernsey County, Ohio. Looks like Carrizo has decided which part of the Ohio Utica Shale is their “sweet spot.” From the Carrizo press release:

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

Illegal Protest Blocks Well Site Near Youngstown, OH
October 15, 2012October 15, 2012

Anti-drilling protesters illegally blocked access to a horizontal shale gas well being drilled in Jackson Township in Mahoning County, Ohio (near Youngstown) on Sunday. The protest went on for five hours, but for some reason the police didn’t seem to think arresting and removing the protesters was a good idea.

The law-breakers, from the group Fracfree Mahoning Valley and Frackfree America, disappointingly included a lawyer and a reverend:

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CONSOL Energy | Energy Companies

CONSOL 3Q12 Update: Earnings, NatGas Production Both Down
October 15, 2012October 15, 2012

Here come the parade of third quarter operational and earnings updates from drilling companies. CONSOL is one of the first out of the gate. The company overall took a hit on earnings in the third quarter, largely because of their coal operations. However, their natural gas production was also down a bit from the third quarter of 2011: 39.5 billion cubic feet for 3Q12 vs. 40.4 billion cubic feet for 3Q11.

During 3Q12 CONSOL reports drilling 12 new Marcellus wells, completing 12 Marcellus wells, with 22 wells going online. Also during 3Q12 CONSOL drilled 4 new Utica wells, 2 were completed and 1 Utica well went online. Here’s the full details from the CONSOL press release:

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Carrizo Oil & Gas | Energy Companies | New York | Tioga County (NY)

Carrizo Says Owego, NY Well Vertical Only (for Now)
October 12, 2012October 12, 2012

Yesterday MDN told you about an exploratory shale well being drilled in Tioga County, NY, just a few miles outside of the Town of Owego by Carrizo Oil & Gas (see this MDN story). We said that Carrizo was drilling a vertical well with plans to turn it horizontal when and if the fracking moratorium in New York is lifted. Were we wrong?

According to an interview given by Carrrizo to NGI’s Shale Daily publication, the well being drilled near Owego will not be turned horizontal. This is what was said:

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Coterra Energy (Cabot O&G) | Energy Companies | Energy Services | Industrywide Issues | New York | Otsego County | Pipelines | Statewide NY | Williams

Who is Behind StopThePipeline.org?
October 12, 2012October 12, 2012

A so-called “grassroots coalition” has formed to oppose the proposed 120-mile Constitution Pipeline. The Constitution will be built by Williams and Cabot Oil & Gas, stretching from the Marcellus Shale gas fields of Susquehanna County in northeaster Pennsylvania through New York State to Schoharie County (see this MDN story for background).

A “group” opposing the new pipeline has sprung up with an impressive web presence at the URL StopThePipeline.org. But who’s behind this group? And what are their true aims? MDN has done a bit of nosing around.

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Carrizo Oil & Gas | Energy Companies | Hydraulic Fracturing | Industrywide Issues | New York | Tioga County (NY)

Carrizo Drills Exploratory Marcellus Well – in New York
October 11, 2012October 11, 2012

What does Carrizo Oil & Gas know about the New York moratorium on fracking we don’t? The moratorium has been in place for 4 1/2 long years now. There are some signs the moratorium may soon end—witness the parade of mainstream news sources granting political cover and “permission” to Gov. Cuomo to make a pro-fracking decision. But the standard operating procedure by the DEC’s Joe Martens until now has been stall and delay.

Enter Carrizo. Today’s Binghamton Press & Sun-Bulletin announces that Carrizo is drilling an exploratory vertical shale gas well outside of Owego, NY (Tioga County), squarely in the “hot zone” of the Southern Tier where gas drilling will take place. Their aim? Find out if shale gas is present in the vertical well, and then turn the well horizontal when and if the moratorium is lifted.

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Chevron | Energy Companies | Mercer County | Pennsylvania

Chevron’s First Utica Drilling Permit for Mercer County, PA
October 11, 2012October 11, 2012

Chevron just received its first permit to drill in the Utica Shale in Mercer County, PA. This is the fourth permit for shale gas drilling in Mercer County.

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Energy Companies | Range Resources Corp

Range Resources Release Q312 Production Numbers
October 11, 2012October 11, 2012

Range Resources, the original driller of the Marcellus Shale in Pennsylvania, announced its third quarter production results today. All of the numbers that should be up are up. Year over year, Range’s natural gas production is up 52%, natural gas liquids production is up 30%, and oil production is up 36%.

From the Range announcement:

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Beaver County | Chesapeake Energy | Energy Companies | Industrywide Issues | Litigation | Pennsylvania

Landowners Settle with Chesapeake, O&G in Western PA Case
October 11, 2012October 11, 2012

A lawsuit initiated by seven families in Beaver County, PA in March against Chesapeake Energy and O&G Investments of Wooster, Ohio has been settled. The landowners originally signed leases with O&G seven years ago, weren’t paid anything during those seven years, weren’t drilled on, and then O&G sold the leases to Chesapeake who tried to drill in order to hold the leases before they were set to expire. The families were rightly outraged by the treatment they received and sued to dissolve the leases (see this MDN story for background).

Yesterday, the judge in the case issued a closure order after being notified of a settlement:

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Energy Companies | Norse Energy

Norse Energy: We’re Still Here, Still Hanging On in NY
October 11, 2012October 11, 2012

Good ol’ Norse Energy—the Norwegian-based driller who rolled the dice on New York State and (so far) lost the bet. You have to admire Norse. They signed a lot of acreage in Upstate New York—some 130,000 acres. Their intent was to frack the shale—but something happened on the way to the fracking dance. NY slapped a moratorium on shale gas drilling that’s now gone on for 4 1/2 long years.

Norse has done what it can to stay solvent ahead of NY’s release of permits to drill. They hope to be among the first to receive said permits when NY finally moves forward (they have already filed for permits). Every now and again Norse issues a press release to essentially say, “We’re still here and still hanging on.” This is the latest such release:

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

New ‘King’ of Utica Wells? Gulfport Shugert Well @ 20 Mmcf/d
October 10, 2012October 10, 2012

Yesterday Gulfport Energy Corporation reported astonishing production results for it’s Utica Shale well Shugert 1-1H (in the town of Kirkwood, Belmont County, Ohio). The well tested at an initial rate of 20 million cubic feet of natural gas per day (Mmcf/d). It also produced an initial 144 barrels of condensate per day, and 2,002 barrels of natural gas liquids per day.

Previously, MDN reported another Gulfport Utica well (the Wagner 1-H) had become the “alpha dog” by overtaking the famed Chesapeake Buell well—and the Wagner well was flowing at “just” 14 Mmcf/d and producing 1,881 barrels of NGLs (see this MDN story). What do we call this new well: The King? (We’re running out of metaphors!) The new Shugert 1-1H well by Gulfport is, to MDN’s knowledge, the single largest producing well in the Utica Shale.

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Coterra Energy (Cabot O&G) | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Susquehanna County

Cabot Responds to Latest Bloomberg Attack over Dimock [Free]
October 10, 2012October 10, 2012

Once again Bloomberg is taking aim at Cabot Oil & Gas over methane in water wells in the Dimock, PA area. Like a dog digging up an stinking, rotting carcass that it previously buried to chew on it some more, Bloomberg just can’t help itself. They’re desperate to prove a connection—any connection—between fracking and “pollution” of water. In this case, methane pollution—something that’s eminently fixable.

The latest hit piece from Bloomberg ran last week and is being endlessly recycled by other media outlets. The piece, titled “Cabot’s Methodology Links Tainted Water Wells to Gas Fracking,” attempts to make a link between data released by an EPA investigation in Dimock and methane from Cabot’s drilling. It cites a Duke University analysis of the data saying in essence that the methane found in two Dimock water wells present a chemical “fingerprint” or signature that matches methane from deep below the surface, not near the surface. The “natural” conclusion is that Cabot must be at fault.

This issue is complex and scientific and the tendency is to try and make it easier than it is. Cabot has taken the time to patiently and accurately respond to this latest attack on their own blog site. MDN is running their post below so you have the full facts.

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