Energy Companies

Energy Companies | New York | Norse Energy | Statewide NY

Norse Energy Continues Selling Pieces of the Company
January 26, 2012January 26, 2012

Norse Energy, with leased acreage in both the Marcellus and Utica Shales in New York State, has been fighting to keep the company afloat until New York finally allows hydraulic fracturing and they can take advantage of their leaseholds. But to keep holding on, they’ve sold off bits and pieces of their leaseholds, as well as bits and pieces of the company. A few weeks ago they converted $3.5 million of bonds (or debt) into stock (or ownership) of the company (see this MDN story).

Yesterday, we learned they’ve sold off another $12.5 million of the company in another bonds for stock swap deal. And now they’re making the same offer to all of their bondholders: Let’s make a deal—soon.

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Chesapeake Energy | Energy Companies | Industrywide Issues | Pipelines | Range Resources Corp

Enterprise Scores Second Commitment for New Ethane Pipeline
January 26, 2012January 26, 2012

Enterprise Products Partners have scored another customer, Range Resources, for their ethane pipeline that will connect the Marcellus and Utica Shales to the Gulf Coast. The 1,230 mile pipeline, dubbed the ATEX Express (Appalachia to Texas) will transport ethane from Washington County, PA to (at first) Cape Girardeau, MO—that’s new pipeline construction. And from Cape Girardeau, Enterprise will reverse an existing 16-inch diameter pipeline and place it into ethane service, going all the way to Mont Belvieu, TX.

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Broome County | Energy Companies | Lease & Royalty Payments | New York | Talisman Energy

Broome County, NY Landowners Get Big Payment from Talisman
January 25, 2012January 25, 2012

New York landowners in Broome County will receive millions in lease payments this month from Talisman Energy—$5000 per acre (they’ve already received $500 per acre). The landowners belong to the Friendsville Group, a landowner coalition that signed a deal with Talisman in 2009. Most of the Friendsville Group members are landowners just over the border in Pennsylvania, who already received their full $5,500 per acre payments two years ago. The New York members had to wait—either until permits were granted, or January 2012.

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Chesapeake Energy | Commodity Price | Energy Companies | Industrywide Issues

NG Prices React to Chesapeake’s Announcement to Cut Production
January 24, 2012January 24, 2012

Yesterday, MDN told you about Chesapeake Energy’s major announcement that they will reduce capital spending on dry natural gas, or methane-only production, by 70 percent this year (see this MDN story). Chesapeake is also shutting down 9 percent of their domestic production, some 0.5 billion cubic feet of natural gas per day, which represents 1.5 percent of the entire natural gas output in the U.S. The result is predictable—less supply and steady demand equals higher prices. And that’s just what happened:

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Energy Companies | Stone Energy

Stone Energy to Double Marcellus Gas Production in 2012
January 24, 2012January 24, 2012

Stone Energy Corporation yesterday announced its planned capital budget spending plan for 2012. Stone’s projected capital budget is $625 million for the year, of which it plans to spend 30 percent (or $187.5 million) on drilling in the Marcellus Shale.

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Chesapeake Energy | Energy Companies

Major Chesapeake Announcement: Shifting from Dry to Wet Gas
January 23, 2012January 23, 2012

Chesapeake Energy today made a major announcement about a change in their investment and drilling strategy for 2012: they will reduce drilling in “dry” natural gas areas by 50 percent for 2012—to 24 rigs by the end of June from the currently operated 47 rigs. Chesapeake operated 75 dry gas rigs in 2011, so the new level is a 67 percent reduction from last year. Chesapeake will also spend some 70 percent less of their capital budget on dry gas drilling in 2012, down to $0.9 billion (from $3.1 billion in 2011). It’s the lowest capital expenditure they’ve made on drilling in dry gas areas since 2005.

By the end of June, Chesapeake says they will be operating only 12 rigs in the dry gas areas of the Marcellus Shale.

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

EPA Starts Water Deliveries in Dimock, PA
January 23, 2012January 23, 2012

The federal Environmental Protection Agency (EPA) is getting itself involved in the ongoing situation in Dimock, PA by delivering water to four households that were affected by methane migration (see MDN’s recent Weekly Update for our view on EPA sticking its nose in). After the EPA told these same families two months ago their water was safe, they reversed course and now say they want to run some water tests themselves, and in the meantime they’ll deliver water to four of eleven families who have refused the Pennsylvania DEP’s settlement of the matter.

The EPA promised water to these same families a few weeks ago and reneged within 24 hours. This time they kept their promise.

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

EPA to Start Water Deliveries in Dimock, PA – Pinky Swear
January 20, 2012January 20, 2012

The flakey federal Environmental Protection Agency (EPA) continues its interference in Dimock, PA. Yesterday they announced (once again) they would start water deliveries to homes in the Dimock area—this time the commitment is to four homes. Recall that they made the same promise two weeks ago, then rescinded their promise within 24 hours (see this MDN story for their broken promise and a Dimock backgrounder). This time they’re going to do it, pinky swear promise. That is…unless they decide not to do it.

PA Department of Environmental Protection Secretary Michael Krancer has warned the EPA to not try and pull a “Pavillion” in Dimock, referring to the sloppy research the EPA has done in Pavillion, Wyoming and their cheeky attempt to try and tie fracking to groundwater contamination, even though the drilling in Pavillion is not shale drilling (see this MDN story).

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Economic Impact | Energy Companies | Industrywide Issues | Processing Plants | Shell

New Timeline for Shell Cracker Plant Announcement
January 19, 2012January 19, 2012

MDN has extensively covered Shell’s plan to build a $1.5-$2.0 billion ethane cracker plant somewhere in the Marcellus region (see MDN’s previous coverage here). A cracker plant “cracks” ethane, a component of raw natural gas, into ethylene, a raw material used to manufacture plastics. West Virginia has been perhaps the most vocal and energetic of prospective locations in their efforts to attract Shell’s investment inside their borders. But Ohio and Pennsylvania are also making a serious effort to attract it as well.

Until now, the word was that Shell would likely make their announcement in mid- to late January. The timeline has apparently changed to be mid- to late February, according to West Virginia officials who remain jazzed about their possibilities in winning the cracker plant sweepstakes.

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Energy Companies | Lease & Royalty Payments | Pennsylvania | Westmoreland County | Williams Production

Drilling Deal Between Williams & Municipality in Western PA
January 19, 2012January 19, 2012

The Latrobe Municipal Authority in Westmoreland County, PA (near Pittsburgh) is negotiating with Williams to lease 236 acres of municipal property for $2,500 per acre with 15 percent royalties on any gas produced. Latrobe is also talking with landowners who own adjacent property hoping they can pool enough land together to present Williams with 800-1,000 acres, including the right to drill on an eight-acre parcel owned by Latrobe located next to their wastewater treatment plant.

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Energy Companies | Pennsylvania | Range Resources Corp | Statewide PA

Range Resources Doubles PA Marcellus Output in 2011
January 18, 2012January 18, 2012

Range Resources, one of the largest drillers in the Marcellus Shale in Pennsylvania, just posted year-end results and said that despite selling their Barnett Shale acreage, 2011 was the eighth consecutive year of double-digit gains for the company. In the Marcellus, Range doubled their output from 2010 levels.

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Energy Companies | Enerplus | Pennsylvania | Statewide PA

Enerplus Allocates 24% of 2012 Capital Budget to Marcellus
January 18, 2012January 18, 2012

Enerplus Corp. , a Calgary-based oil and gas producer, has approved an $800 million capital spending program for 2012 the company expects will help boost production 10 percent. Of that $800 million, Enerplus will spend $190 million (24 percent) in the Marcellus Shale, focused primarily on drilling to delineate and retain leases. The target is to drill 20 Marcellus wells in 2012, with 18 of those wells coming on-stream by the end of the year. They plan to nearly triple their Marcellus production from 25 mmcf/d (million cubic feet per day) now to 70 mmcf/d by the end of the year.

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Accidents | Chief Oil & Gas | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Wyoming County (PA)

Possible New Case of Methane Migration in Wyoming County, PA
January 16, 2012January 16, 2012

The Pennsylvania Department of Environmental Protection (DEP) sent a violation notice to Chief Oil & Gas on Jan. 4 for three gas wells in Nicholson Township (Wyoming County) saying there is 100 percent combustible gas between the cemented steel casings, which the DEP uses as a sign of flaws in construction of the well. The investigation began after a nearby resident complained of high methane levels in well water supplies. The DEP is still investigating two nearby water wells with high levels of methane and has not yet determined if Chief’s wells are the cause.

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Energy Companies | Exxon Mobil | Lease & Royalty Payments | Monroe County | Ohio | XTO

Correction: Exxon Buys 25K Acres of Utica Shale Leases in OH
January 11, 2012January 11, 2012

Two days ago MDN reported, based on copies of paperwork filed with Monroe County, Ohio, that Exxon Mobil via its subsidiary XTO Energy had acquired 13,200 acres of Utica Shale gas leases from Beck Energy (see this MDN story). It turns out there’s more to the story.

MDN received a copy of an additional purchase agreement between Beck and Exxon for another 7,627 acres, for a total deal between the two companies of 20,827 acres of leases in Monroe County. The new/second agreement appears to be property held by Beck with delayed rental payments—that is, property where there is currently no active drilling.

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CONSOL Energy | Energy Companies

CONSOL Increases 2012 Capital Spending in Marcellus/Utica
January 10, 2012January 10, 2012

CONSOL Energy is increasing its capital projects budget by 21 percent in 2012, including a ramp-up in their commitment to both the Marcellus and Utica Shale plays. CONSOL says they will spend $395 million to drill 122 new Marcellus Shale wells in 2012 (their portion of a joint venture with Noble Energy), 39 of those wells will be in the liquids-rich portion of the Marcellus. They will invest $50 million in Utica Shale drilling for the year.

From the CONSOL press release:

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Energy Companies | Talisman Energy

Talisman to Reduce Spending, Rig Count in Marcellus for 2012
January 10, 2012January 10, 2012

Talisman Energy announced yesterday that it plans to spend 11 percent less on capital projects in 2012 than it did in 2011. They also announced they would reduce the number of Marcellus drilling rigs from 11 in use during 2011 down to between five and seven for 2012.The reason? Low natural gas prices. Talisman expects natural gas prices in North America to remain low for the foreseeable future. Although they are decreasing overall spending, Talisman will increase spending, and shifting their focus, to shale gas liquids.

From the Talisman press release:

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