Diversified Picks Up Pace Plugging Old Wells – 174 So Far in 2023
Diversified Energy (formerly Diversified Gas & Oil), with major assets in the Marcellus/Utica region (and other regions, too), owns approximately 8 million acres of leases with 67,000 (mostly) conventional oil and gas wells. The company’s business model is to buy lower-producing wells on the cheap and find ways to make them more productive. The company issued its latest update, for the first half of 2023, last Friday. Paul Gough, from the Pittsburgh Business Times, listened to the conference call and combed through the update. He hit on a key piece of news: Diversified has accelerated its program to plug old wells (its own wells in addition to orphaned wells) this year. In fact, the company has already (as of June 30) plugged 174 wells for the first half of the year. That number includes 87 of Diversified’s own wells.
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Quick history lesson. In 2004, Range Resources was the first company to drill and frack the first Marcellus Shale gas well, which happened in Mt. Pleasant Township (Washington County), PA. It was love at first sight. Over the past almost 20 years, Range has added a few other counties to the list of place where it drills, and the company remains headquartered in Fort Worth, Texas. However, Range considers Washington County, PA, “our core, our home, the DNA of our company.” The bond of love is still strong all these years later.
Antero Resources and Antero Midstream have donated a massive $4 million to West Virginia University’s Benjamin M. Statler College of Engineering and Mineral Resources to help train the next generation of petroleum and natural gas engineers. Antero’s gift is the largest philanthropic donation to the school to date. It will support undergraduate and graduate students in the petroleum and natural gas engineering program.
Last Friday, MDN told you about a new Cambridge University study published in the journal Science exposing the sale of carbon credits as a scam (see 
New shale permits issued for Aug 21 – 27 in the Marcellus/Utica decreased once again. Up down, up down, up down. That’s what it feels like. There were 16 new permits issued last week, down nearly half from the 27 issued the prior week. Last week’s permit tally included 11 new permits in Pennsylvania, 5 new permits in Ohio, and no new permits in West Virginia (WV has issued no permits in four of the last five weeks). The top permittee for the week, for the third week in a row, was Chesapeake Energy, receiving 5 permits–1 in Bradford County and 4 in Sullivan County.
Funny how a couple of miles can make all the difference. In West Deer, a township in Allegheny County, PA (near Pittsburgh), Olympus Energy faces organized opposition to every project it proposes. Some Olympus well pads get approved, and some don’t. Every Olympus pad is vigorously opposed by anti-fossil fuelers. Yet in the township immediately next door, Frazer (also Allegheny County), Range Resources appears to have no opposition. We hope we don’t jinx it for them! Range has just received a permit for the company’s fifth multi-well pad. No hew and cry from the crazy left–no nothing. Just business as usual.
A Repsol well located on a pad in Troy (Bradford County), PA, experienced uncontrolled natural gas venting. The situation began around 4 p.m. Sunday, Aug. 27. It continued to vent “sporadically” until about 2:30 a.m. on Monday, Aug. 28. Repsol called the state Dept. of Environmental Protection (DEP) to report the situation at 2:02 a.m. on Monday. A DEP inspector was at the site within hours, at 5:55 a.m. The venting caused a brief evacuation order for several homes within a half-mile radius of the well pad, which was lifted hours later when the DEP determined the venting had stopped.
Is there now a truce in the long-running dispute between Epsilon Energy and Chesapeake Energy over drilling new wells in Susquehanna County, PA? Perhaps! Yesterday, Epsilon, a small publicly-traded energy company that joint venture partners with (gives money to) other companies, like Chesapeake Energy, with the other company doing the drilling, announced that “the operator of our upstream assets in the Marcellus recently notified us of near-term drilling plans on our acreage.” While not named, the “operator” must be Chessy. Epsilon has an ongoing lawsuit against Chesapeake for refusing to drill new wells on its jv acreage.
Olympus Energy (formerly Huntley & Huntley) drills in the Greater Pittsburgh region, in Allegheny and Westmoreland counties. Olympus owns a pipeline subsidiary called Hyperion Midstream that builds gathering lines to the company’s wells. Hyperion applied to build a compressor station on a recently approved Olympus well pad in rural West Deer Township (Allegheny County). The PA State Dept. of Environmental Protection (DEP) will hold a public hearing on Sept. 26 about the proposal. Grab the popcorn.
Two Marshall County, WV landowners with the same last name (obviously related) sued Southwestern Energy (SWN), accusing the company of “well bashing,” in March of this year (see 
Nearly one year after EQT announced a deal to buy privately-owned Tug Hill Operating’s West Virginia shale assets for roughly $5.2 billion (see 
One year ago, in July 2022, MDN brought you news of a possible frac-out, or “inadvertent return” that happens when drilling mud pops out of places where it’s not supposed to–places outside the borehole being drilled (see 
We should have known there was a price to pay, a “pound of flesh” to be exacted, when we read the announcement that the Bidenistas of the FTC (Federal Trade Commission) had approved EQT’s deal to buy Tug Hill’s West Virginia assets. Two days ago, EQT issued a press release to announce the deal had been blessed by the FTC and would happen within the next seven days (see