| | | | |

Eclipse Numbers: Dry Gas vs Wet Gas in Utica – Which One Wins?

smackdownSome encouraging numbers from a set of well pads in the Ohio Utica Shale from Eclipse Resources. Eclipse’s Shroyer well pad in Eastern Monroe County, OH has two wells producing a combined 42.5 MMcf/d–VERY healthy initial production numbers and something to crow about. They also have a 5-well pad, the Mizer pad in Central Harrison County, OH, that’s producing a combined 10.1 MMcf/d of natural gas and approximately 1,800 Bbl/d of condensate. Not much in the way of methane but a decent amount of condensate production. How do the two sets of wells stack up against each other? Let’s run the economic numbers for Eclipse on the methane only vs condensate wells. Which do you think earns them more money?…
Continue reading

| | | | |

Study Says Series of Unfelt Earthquakes in OH from Utica Fracking

Another day, another “study” that says fracking causes earthquakes–this time in Ohio’s Utica Shale. In typical and now predictable fashion, mainstream media does a “drive-by” with the information–like a drive-by shooting–and then continues on its merry way. Here at MDN we’ll break it down and explain it so you have ALL the facts and not anti-drilling “impressions” of what the data says. First off, an admission that we don’t (yet) have a full copy of the newly published study, which has reportedly been published in the journal Seismological Research Letters (but which we can’t find on their website). We’ve requested a full copy of the paper and are awaiting it and hope to share it with you when we get it. The study is titled, “Characterization of an earthquake sequence triggered by hydraulic fracturing in Harrison County Ohio” and looks at a series of “400 earthquakes” that were so tiny as to be unfelt by anyone–but detectable by finely tuned equipment. The earthquakes happened in Harrison County, OH and are thought (but not proven) to be the result of fracking several Utica wells over top of a previously unknown geologic fault. The author of the study himself says the earthquakes couldn’t even be felt by anyone…
Continue reading

| | | | | |

Harrison County Landowers Say Dominion Pipeline Offer is Too Low

Dominion wants to widen an existing right-of-way to build a 16.5 mile natural gas pipeline in Harrison County, OH. But according to landowners under whose property the pipeline would sit, Dominion is low-balling them–offering, literally pennies on the dollar. How much is the offer, and what’s the going rate to lease land for a 36″ pipeline in that area of Ohio?…
Continue reading

| | | | | | | | | |

Canadian NOVA Chemicals to Ship Utica Ethane via UTOPIA

In December, midstream company Kinder Morgan announced they would build a 210-mile, 10-inch natural gas liquids (NGL) pipeline that will carry Utica ethane and propane from Harrison County, OH, to Riga, MI. From Riga, the NGLs will hitch a ride via the KM Cochin Pipeline east to Windsor, Ontario, Canada (see UTOPIA is Coming! The UTOPIA Pipeline, that is…). Earlier this month MDN told you that UTOPIA launched an open season to sign up customers for the pipeline (see UTOPIA Open Season Begins Today – OH to MI NGL Pipeline). Not surprisingly, Kinder has just announced that NOVA Chemicals, owner of the Corunna ethane cracker plant in Ontario, has signed up as one of Kinder’s main customers for UTOPIA. We did, however, notice a few interesting things about this latest announcement…
Continue reading

| | | | | | |

UTOPIA Open Season Begins Today – OH to MI NGL Pipeline

Back in December MDN told you about Kinder Morgan’s new proposed new pipeline called the Utica To Ontario Pipeline Access, or UTOPIA (see UTOPIA is Coming! The UTOPIA Pipeline, that is…). The 240-mile natural gas liquids (NGL, specifically ethane and propane) pipeline will connect multiple fractionation facilities in Harrison County, OH, to Riga, MI. From Riga, the NGLs will hitch a ride via the KM Cochin Pipeline east to Windsor, Ontario, Canada where they will be delivered to NOVA Chemicals. The new $300 million, 10-inch pipeline from OH to MI is what is called UTOPIA. Yesterday KM announced a binding open season for UTOPIA…
Continue reading

| | | | |

Eclipse Resources: Production Results for 7 OH Utica Wells

Eclipse Resources, a small but rapidly growing independent driller focused on the Marcellus and Utica Shale region, released the initial production results for their two most recent well pads in the Utica Shale–one pad in Monroe County, the other in Harrison County. Eclipse drilled seven wells across the two pads, and if you combine them, the seven wells are producing (initial production or IP) 52.6 million cubic feet of natural gas per day, and 1,800 barrels of condensate per day. Very respectable numbers. Here’s the full details, along with a copy of an investor presentation (lots of great maps and charts) just released…
Continue reading

| | | | | | | | | | | | |

McClendon Invests in New Utica Pipeline Project, JV with Regency

It was only in June, less than two months ago, that MDN brought you the news that it sure seems like Aubrey McClendon is building a new company that looks a lot like the first company he built, Chesapeake Energy (see Aubrey McClendon Gets Back into the Midstream Business). McClendon is not only high on Utica and Marcellus drilling with his newly formed American Energy Partners company, he’s also high on building the pipelines needed to conduct the gas out of the borehole. His new midstream division was set up to work on such projects. And less than two months later, we have the first of those projects. Yesterday McClendon’s new midstream division and Regency Energy Partners announced a joint venture to build the Utica Ohio River Project for $500 million…
Continue reading

| |

MWCD Neighbor Asks District to Include Them in Future Lease Deal

The Muskingum Watershed Conservancy District (MWCD) was formed in 1933 to help control flooding and promote water conservation in the Muskingum River watershed area of Ohio, an area that covers 8,000 square miles. Over the past few years the MWCD has been aggressively leasing some of it’s 54,000 acres for shale drilling, a move that is making the organization big bucks (see MWCD Reinvesting $300M of Utica Shale Revenue over Next 10 Yrs). Some of the MWCD leases are for drilling under and around reservoirs (see Antero Pays $15K/Acre, 20% Royalties for MWCD Piedmont Lake Lease). Anti-drillers have, of course, tried to spoil it (see Anti-Drillers Win Minor Victory Against Muskingum Watershed Dist), but such efforts have been largely unsuccessful in their attempt to derail shale drilling on MWCD land. What you don’t usually hear about are stories like this one…
Continue reading

| | | | | | | |

Marcellus/Utica Driller Eclipse Resources IPO Seeks $864M+

Just over a month ago MDN brought you the news that PA-based Marcellus/Utica driller Eclipse Resources would soon float an initial public offering (IPO) hoping to raise $100 million (see Utica Driller Eclipse Resources Files IPO – Wants to Raise $100M). It now appears the information in that story was off–way off. Earlier this month Eclipse launched their IPO by announcing they want to sell 30.3 million shares of common stock for $27-$30 per share. If you calculate they get $28.50, that would raise $864 million!…
Continue reading

| | | |

Patience Gone: OH County Recorder Threatens to Sue for More Space

The County Clerk–or in some places County Recorder–is usually a pretty low-key person in a low-key job. It’s that person’s job to keep track of land deeds and official paperwork for the county. MDN has previously pointed out an early indicator of where there will soon be drilling is when the County Clerk/Recorder’s office gets busy. In some cases, land agents have camped out overnight waiting to get in to a deed records office (see Title Researchers Camp Out at Tyler County (WV) Clerk’s Office). Harrison County, OH’s County Recorder is Tracy Boyer. The records office where she works has been hopping busy going on two years now. Tracy is normally a patient person, but her patience, after two years, has run out. She’s threatening to sue Harrison County commissioners over the need to expand the physical space her office needs to accommodate the ongoing flood of people who use it…
Continue reading

| | | | | | | | | | | |

Summit Midstream Cuts $377M Check for 40% of Ohio Gathering

Ohio Gathering is a midstream (pipelines and processing plants) company operating in the southeastern Ohio area–Harrison, Guernsey, Belmont, Noble and Monroe counties. It is a joint venture owned by MarkWest, EMG and until recently, Gulfport Energy. In January MDN told you that Summit Midstream would be buying Gulfport’s 40% ownership interest (see Summit Midstream Closes Deal to Buy 40% Stake in Ohio Gathering). These things take time with lots of lawyers and due dillgence and enough paperwork to re-paper the walls in a dozen homes. The paperwork is done and Summit has cut the check–a $377 million check that will go into the bank account of MarkWest and EMG…
Continue reading

| | | | | |

Kudos: Gulfport Energy Donates $400K to OH Non-Profits

Gulfport Energy has just done a very nice thing for the residents of eastern Ohio. Last Thursday Gulfport’s CEO Michael Moore was on hand in Cambridge (Guernsey County), OH to bestow a $400,000 gift to the Foundation for Appalachian Ohio. The gift is called the Gulfport Energy Fund and will be used for non-profits and educational institutions in those communities where Gulfport is actively drilling: Belmont, Guernsey, Harrison, or Monroe counties…
Continue reading

| | | | | | |

Harrison, OH a Hub for Midstream Processing – Continues to Grow

A few weeks ago MDN told you that Access Midstream and partners M3 Midstream and EV Energy Partners are planning to boost capacity and add a second “processing train” to their Leesville, OH gas processing complex (see Access Midstream: Major Expansion of Utica Processing Facility). With added capacity, the complex will be able to process 1.1 billion cubic feet of natural gas per day! In addition, the jv partners’ Scio, OH facility is currently building a third processing train to their fractionation (liquids-separating) operation…
Continue reading

| | | | | | | | |

New Research Project Samples Water Wells in E Ohio Near Fracking

Researchers at the University of Cincinnati are looking for homeowners with private wells willing to have their wells sampled as part of ongoing research into the effects (or lack thereof) from nearby fracking. The idea is to do some real science for a change–that is, to take samples before drilling begins and then again during and after–to see if shale drilling has an effect on ground water supplies. What a brilliant concept! Real, in the field research and done before, during and after. Sharp folks at UC.

Here’s the details from the UC on what they play to do, and how to contact them if you live in Carroll, Columbiana, Harrison, Belmont, Noble, or Guernsey counties in Ohio…
Continue reading

| | | | | | |

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

wowAll’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…
Continue reading

| | | | | | |

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

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…
Continue reading