Guernsey County

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

Antero Pays $15K/Acre, 20% Royalties for MWCD Piedmont Lake Lease
April 21, 2014April 21, 2014

All’s we can say is “WOW!” Last Friday the Muskingum Watershed Conservancy District (MWCD) signed another (new) lease with Antero Resources to lease more than 6,300 acres in and around Piedmont Lake, in Guernsey, Harrison and Belmont counties in Ohio. The land is in prime Utica Shale territory and Antero must have wanted it bad, because they paid a $15,000 per acre signing bonus. Plus 20% in royalties for anything produced from the land. That is, by far, the largest bonus payment we have ever heard of in the Marcellus and Utica region.

Landowners in the MWCD area should be thankful. Because of this deal and other leases signed by the MWCD, the rates landowners pay to the MWCD are going down–by 50%–starting next year. What a fantastic story where everyone wins. Landowners win with lower watershed fees, Antero wins by scoring what will no doubt be very productive property for shale wells, America wins with more (and cheaper) natural gas. There are no losers in this scenario. Here’s more on Friday’s meeting of the MWCD board and the decisions they made…
Read More “Antero Pays $15K/Acre, 20% Royalties for MWCD Piedmont Lake Lease”
Antero Resources | Belmont County | Energy Companies | Guernsey County | Harrison County | Lease & Royalty Payments | Ohio | Utica Shale

MWCD Close to Signing Utica Lease for Piedmont Lake, OH Property
March 26, 2014March 26, 2014

In early January MDN brought you the delicious news that the Muskigum Watershed Conservancy District (MWCD) is planning to lease a large tract of District-owned land in and around Piedmont Lake (in Belmont, Guernsey and Harrison counties) for Utica Shale drilling (see MWCD Open House on Leasing Piedmont Lake Property for Drilling). The original 6,600 acres has now turned into 6,700 acres and the lessor will be Antero Resources, according to an announcement issued by the MWCD last Friday.

According to the MWCD board, they will likely vote on the lease at their next meeting scheduled for April 18. An update on the Piedmont Lake lease from the MWCD is below, along with the draft copy of the lease from Antero. Noticeably missing from the draft lease are the terms…
Read More “MWCD Close to Signing Utica Lease for Piedmont Lake, OH Property”
Belmont County | Carroll County | Columbiana County | Guernsey County | Harrison County | Lease & Royalty Payments | Monroe County | Noble County | Ohio | Utica Shale | Washington County (OH)

Company Targets OH Landowners – Buy Future Royalties for Cash Now
March 26, 2014March 26, 2014

Gateway Royalty is back and has $58.5 million on the bank they can’t wait to give landowners in the Ohio Utica Shale in return for future royalty payments. MDN told you about Gateway last summer. They were the company that the town of Carrollton, OH sold 1/4 of their royalty rights to (see OH Town Votes to Give Up 1/4 Royalties for Cash Payment Now). The way it works, in brief: Gateway pays landowners a lump sum now in return for the right to receive that landowner’s future royalty payments for years to come. You (the landowner) get your money now, they (Gateway) get the money you would have gotten dribbled out over time. Of course the money you receive now is discounted and in all likelihood far less than you would have gotten if you had waited just a few years (the bulk of royalty payments come in the first four years). It’s a bit of a gamble by both parties because no one really knows how much a well will produce.

Still, there are reasons why someone may want to get cash up front–pay off debt, ill health, etc. So in that vein, we bring you the latest press release from Gateway announcing they are ready, willing and waiting to give Ohio Utica Shale landowners money now. Specifically they are targeting landowners in Washington, Noble, Guernsey, Monroe, Belmont, Harrison, Carroll and Columbiana counties…
Read More “Company Targets OH Landowners – Buy Future Royalties for Cash Now”
Economic Impact | Guernsey County | Industrywide Issues | Jobs | Ohio | Supply Chain | Utica Shale

Tiny SE OH Town Sees Hotel Construction Boom Thx to Utica Shale
March 6, 2014March 6, 2014

As we’ve previously written, one way you know shale drilling is on the horizon is when there the county clerk or county recorder’s office gets busy with title abstractors researching. We told you way back in 2012 that Belmont County, OH was about to see a drilling boom (see Belmont County, OH Drilling to Take Off Soon). How do you know when an area’s drilling is about to expand even more? When companies are willing to build not one but four new hotels–in a town with only 10,555 residents!

Here’s the story of drilling about to reach a fevered pitch in Belmont’s neighboring county, Guernsey and the little town of Cambridge which is having a boom in hotel construction…
Read More “Tiny SE OH Town Sees Hotel Construction Boom Thx to Utica Shale”
Carrizo Oil & Gas | Energy Companies | Guernsey County | Ohio | Utica Shale

Carrizo Releases IP Numbers for Guernsey County, OH Utica Well
January 20, 2014January 20, 2014

Last week Carrizo Oil & Gas released a brief update on the initial production for their newest Utica Shale well, the Rector 1H in Guernsey County, OH. In addition, Carrizo said they plan to move a drilling rig into the OH Utica in early 2Q14 and keep it there through the balance of the year.

According to NaturalGasIntel.com, Carrizo’s acreage position is the smallest of the “major” drillers in the Utica with just 14,500 acres leased. Here’s Carrizo’s initial production (IP) numbers for the Rector 1H and their comments about their Utica drilling program:
Read More “Carrizo Releases IP Numbers for Guernsey County, OH Utica Well”
Belmont County | Butler County | Carroll County | Energy Companies | Guernsey County | Noble County | Ohio | Pennsylvania | Rex Energy

Rex Energy 4Q13: Several Marcellus Experiments Paying Off
January 16, 2014January 16, 2014

The “little” driller in the Marcellus, Rex Energy, posted impressive gains in production for the fourth quarter of 2013. According to their 4Q13 update issued yesterday, Rex’s production, nearly all of which comes from the Marcellus and Utica Shale region, was 110 million cubic feet per day–a 12% increase over 2012. Of keen interest to investors is that 31% of net production for 4Q13 was oil and natural gas liquids (NGLs). The company gets a lot more money for those products than just plain “dry gas” methane.

Rex has operations in western PA and eastern OH. Of interest to MDN is that Rex is testing a strategy of drilling both the Marcellus and the shallower Upper Devonian layers in a single well, apparently with good success. They’re also experimenting with spacing wells closer together–at 600 feet apart instead of the traditional 750 feet. Rex is innovating, and reaping the rewards. Here’s their full 4Q13 update:
Read More “Rex Energy 4Q13: Several Marcellus Experiments Paying Off”
Belmont County | Guernsey County | Harrison County | Lease & Royalty Payments | Ohio | Utica Shale

MWCD Open House on Leasing Piedmont Lake Property for Drilling
January 8, 2014January 8, 2014

Oh, we love it! The Muskigum Watershed Conservancy District (MWCD) has definitely seen the light. Although they were scared off from allowing shale drilling on Watershed-owned property early on, the board came around and eventually saw the light. Now they can’t get enough of shale drilling! They’re leasing MWCD-owned land for shale drilling, and they’re selling water to drillers–in many instances to frack wells being drilled on MWCD land. Beautiful!

The MWCD announced yesterday that so many drillers are knocking on their door to lease MWCD land in and around Piedmont Lake (in Belmont, Guernsey and Harrison counties) for Utica Shale drilling, they will have a public open house next week to discuss it. The MWCD owns some 6,600 acres around Piedmont Lake–and leases in that area have seen some of the highest signing bonuses and royalties in the entire northeast. We’re talking serious money (many many millions) for the MWCD if they lease that land for Utica Shale drilling…
Read More “MWCD Open House on Leasing Piedmont Lake Property for Drilling”
American Energy Partners | American Energy Utica | Energy Companies | Guernsey County | Ohio | SWEPI

Exclusive: McClendon Buys 24K Acres of SWEPI Leases in OH Utica
October 25, 2013

It seems that Aubrey McClendon is already putting some of that $1.7 billion he recently raised to good use (see McClendon Gets a Little Help ($1.7B) from His Friends in OH Utica). Thanks to an alert commenter on the GoMarcellusShale.com website, we now know where some of that $1.7B went.

In paperwork filed with the Guernsey County, OH Recorder’s office dated October 10, 2013, SWEPI (i.e. Shell) assigned what appears to be most or all of their leased Utica Shale acreage in Guernsey County over to McClendon’s America Energy – Utica company. The transfer (full copy embedded below listing ALL of the leases and landowners by name), includes 24,650 gross/24,016 net acres…
Read More “Exclusive: McClendon Buys 24K Acres of SWEPI Leases in OH Utica”
Antero Resources | Energy Companies | Guernsey County | Hydraulic Fracturing | Industrywide Issues | Noble County | Ohio | Utica Shale

Muskingum Watershed District Approves 3rd Water Sale for Fracking
October 23, 2013October 23, 2013

As they have done in the past, the Muskingum Watershed Conservancy District in Ohio has approved more water sales for using fracking. This batch comes from Seneca Lake in southeast OH. The Utica Shale driller buying the water is Antero Resources…
Read More “Muskingum Watershed District Approves 3rd Water Sale for Fracking”
American Energy Utica | Energy Companies | Guernsey County | Harrison County | Ohio | Tuscarawas County | Utica Shale

McClendon’s Utica Company Does JV with OH Driller, Drilling Soon
October 2, 2013October 2, 2013

Yesterday MDN brought you the news that former Chesapeake Energy CEO Aubrey McClendon had started a second company specifically created to target the Utica Shale (see Aubrey McClendon Forms Utica Company, Gets Major Investor). In true Aubrey “wheeling and dealing” fashion, his new company, called American Energy Utica, is already forming joint ventures with other companies in the Utica Shale. One of those companies is Red Hill Development, an independent oil & gas driller located in Dover (Tuscawaras County), OH.

Red Hill Development is tickled pink to be working with McClendon and says the partnership will be an ongoing venture “for many years to come.” According to Red Hill, the new joint venture is already applying for permits and will begin drilling by the end of this year. The focus of their drilling efforts? Guernsey and Harrison counties…
Read More “McClendon’s Utica Company Does JV with OH Driller, Drilling Soon”
Energy Companies | EnerVest | EV Energy Partners | Guernsey County | Harrison County | Lease & Royalty Payments | Noble County | Ohio | Utica Shale

EVEP/EnerVest Cuts Deal to Sell 22.5K OH Utica Acres for $284M
August 9, 2013August 9, 2013

In September last year, EV Energy Partners/EnerVest put more than a half million acres of Ohio Utica Shale acreage on the market. Near the end of last year, a deal for 104,000 of those acres seemed to be almost done, but in April of this year, the deal fell apart (see EV Energy Partners Deal to Sell 104K Utica Acres Dead, What Now?). EVEP then changed gears and said instead of putting big blocks up for sale, they’ll look at selling off smaller chunks (see EV Energy: Changing from Big Deals to Small for Utica Land Sale). Looks like the change in strategy worked.

Today, EVEP announced they’ve made a new deal to sell 22,535 acres in Guernsey, Harrison and Noble counties in Ohio for $284.3 million to an unnamed buyer. According to EVEP, the deal works out to be a very high $12,900 per acre. We ran the math and came up with $12,616 per acre. Either way, EVEP is getting a LOT of money for unloading Utica Shale acreage they don’t want. This deal is scheduled to close in the third quarter–the next few months. Let’s see if this one actually happens.

The announcement from EVEP/EnerVest (with a map of the acreage sold):
Read More “EVEP/EnerVest Cuts Deal to Sell 22.5K OH Utica Acres for $284M”
Antero Resources | Energy Companies | Guernsey County | Noble County | Ohio | Utica Shale

MWCD to Sell 138M Gallons of Seneca Lake Water for Utica Drilling
July 22, 2013July 22, 2013

Last February, the Muskingum Watershed Conservancy District (MWCD) signed a lease with Antero Resources to lease 6,700 acres under and around Seneca Lake. The MWCD got a $40.3 million signing bonus, plus 20% royalties (see Muskingum Watershed District Signs with Antero for $40.3M Bonus). Last week, the MWCD voted to sell up to 138 million gallons of water from Seneca Lake to Antero so they can use it in their drilling and fracking operations, making another potential $828,000.

We’ll lease you the land and sell you the water to drill it too. Cool…
Read More “MWCD to Sell 138M Gallons of Seneca Lake Water for Utica Drilling”
Belmont County | Energy Companies | Guernsey County | Harrison County | Hess | Jefferson County (OH) | Ohio | Statewide OH | Utica Shale

Hess: Frackin’ and Flarin’ in Eastern Ohio
June 27, 2013June 27, 2013

It looks like Hess has come alive in Ohio’s Utica Shale. According to the Marcellus and Utica Shale Databook – Volume 1, Hess received 2 permits to drill in Belmont County for the period January – April, 2013. They also received 5 permits to drill in Guernsey County, and 8 permits to drill 3 wells in Harrison County for the same period. Hess recently completed drilling one of the Belmont wells and that well is now being flared.

From this news account, we get more insight into Hess’ recent Utica Shale drilling activities and production:
Read More “Hess: Frackin’ and Flarin’ in Eastern Ohio”
Belmont County | CONSOL Energy | Energy Companies | Guernsey County | Harrison County | Jefferson County (OH) | Noble County | Ohio | Utica Shale

CONSOL’s View of Best Counties to Drill in Ohio Utica Shale
June 17, 2013June 17, 2013

Last Friday at a Columbiana (OH) Area Chamber of Commerce event, Harry Schurr, general manager of Utica Shale operations for CONSOL Energy, spilled the beans on which Ohio counties he believes will see drilling for oil and gas in the near- and medium-term. He outlines where oil drilling is not going to take off (not enough pressure to pump it out), and where gas drilling will not take off until gas prices go higher. But like the story of Goldilocks, there are a few Ohio counties where the conditions (i.e. large volumes of condensate) are “just right” for drillers…
Read More “CONSOL’s View of Best Counties to Drill in Ohio Utica Shale”
Boardwalk Pipeline Partners | Energy Services | Guernsey County | Industrywide Issues | NGLs | Ohio | Pipelines | Williams

Bluegrass NGL Pipeline Going Through Guernsey County, OH?
May 20, 2013May 20, 2013

In March, Williams and Boardwalk Pipeline Partners announced a joint venture to re-purpose existing pipelines and build new sections of pipeline to carry natural gas liquids from the Marcellus/Utica region to the Gulf Coast for processing (see Williams, Boardwalk Announce Marcellus-to-Gulf Coast NGL Pipeline). The exact route of the new Bluegrass Pipeline, as they call it, has not been disclosed. However, we have an idea of where some of it will be built as it crosses Ohio…
Read More “Bluegrass NGL Pipeline Going Through Guernsey County, OH?”
Energy Companies | Guernsey County | Noble County | Ohio | Rex Energy | Statewide OH

Rex Energy OH Utica Wells go Toe-to-Toe with Gulfport Wells
March 20, 2013March 20, 2013

So far, we’ve had precious little in the way of well production numbers from the Ohio Utica Shale. The numbers we have had are encouraging. On Monday, Rex Energy released well production numbers for their “Warrior South Prospect” wells in the Ohio Utica, and the numbers look very good indeed. From two wells in Guernsey County and one in Noble County, Rex is reporting an average daily production of around 8 million cubic feet of natural gas, 500 barrels of condensate (natural gasoline), and 1,200 barrels of natural gas liquids (mostly ethane), per day for each well.

Below are the details from Rex, along with an embedded copy of their company presentation just updated (March 2013) which shows many more details, including maps and a very interesting table (on page 18) that compares Rex’s three Ohio wells with other drillers’ wells, including Ohio’s largest producing wells drilled by Gulfport. When converted to BTUs produced—which takes into account not only methane, but also gas liquids, condensate and oil—the Rex wells are among the best producing wells in the state…

Read More “Rex Energy OH Utica Wells go Toe-to-Toe with Gulfport Wells”