Diversified May Monetize Some EdgeMarc OH Utica Assets

In August MDN told you that Diversified Gas & Oil was the high (and only) bidder for Ohio Utica assets owned by EdgeMarc Energy, buying those assets out of bankruptcy court (see Bankrupt EdgeMarc Sells Ohio Utica Assets to Diversified for $50M). In a recent interview EdgeMarc CEO Rusty Hutson said the company may (underscore may) look to monetize, or sell, some of those undeveloped assets recently purchased.

UPDATE: Please note that this article was modified from a previous version. A representative alerted us that our original take, in which we said Diversified was “flipping” the EdgeMarc assets, was incorrect and misleading. We do sincerely regret that error.
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Another 655 Acres in Ohio Wayne Natl Forest Auctioned for $1.3M

The federal Bureau of Land Management (BLM) recently announced the winners of Utica Shale mineral rights for 14 parcels of land, adding up to ~655 acres, located in Wayne National Forest (WNF). The 14 properties netted the government $1.326 million and all 14 were purchased by two (possibly more) Utica Shale drillers. Average price per acre paid across the entire lot: $2,024. Who did the leasing? You have to be a subscriber to find out. 🙂
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Bankrupt EdgeMarc Sells Ohio Utica Assets to Diversified for $50M

EdgeMarc Energy, headquartered in Canonsburg, PA (with 50,000 acres of Marcellus/Utica leases), filed for Chapter 11 bankruptcy in May, looking to sell all of the company’s assets (see EdgeMarc Energy Files for Bankruptcy, Blames Revolution Pipe). Diversified Gas & Oil placed a bid on EdgeMarc’s Ohio Utica assets, offering $50 million. Nobody else bid, so the bankruptcy court has just approved the sale to Diversified. How many Utica wells and how much acreage? We tell you below.
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Ohio Issues First Permits to Drill Under Wayne National Forest

This is a momentous occasion, nearly 13 years in the making. The Ohio Dept. of Natural Resources (ODNR) issued permits on June 28 to drill two Utica Shale wells in Monroe County. Both wells begin on privately owned land, but then travel under sections of Wayne National Forest (WNF). As near as we can tell, these are the first two such wells to pass under WNF land. Below we tell you exactly where they’re located, and which company received the permits to drill them.
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Long Ridge Scores New OH Data Center for Utica-Fired Elec Plant

Long Ridge Energy Terminal

Nearly a month ago MDN told you the Long Ridge Energy Terminal in Monroe County, OH (transloading facility) has begun to build a 485-megawatt Utica gas-fired electric plant (see Work Begins on Gas-Fired Elec Plant in Monroe County, OH). The new Utica-fired plant will be up and running in “late 2021.” We now know at least one customer for that electricity: DP Facilities Inc.
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Work Begins on Gas-Fired Elec Plant in Monroe County, OH

Long Ridge Energy Generation Project – artist’s rendering

In January 2018 MDN brought you news from the new owners of what is now called the Long Ridge Energy Terminal in Monroe County, OH (transloading facility) that they were moving forward “quickly” with plans to build a 485-megawatt Utica gas-fired electric plant. Quick, it seems, is a relative term. The good news is that ground was broken to build the plant last Thursday.
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EdgeMarc Energy Files for Bankruptcy, Blames Revolution Pipe

EdgeMarc Energy, headquartered in Canonsburg, PA (with 45,000 acres of Marcellus/Utica leases), is filing for Chapter 11 bankruptcy, looking to sell all of the company’s assets. The reason? They can’t move their production to market because their main pipeline partner, Energy Transfer’s Revolution Pipeline, exploded last September and ET has not been able to get the PA Dept. of Environmental Protection to allow them to restart it.
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Montage Resources Drilling 33% of 2019 Wells in Ohio Marcellus!

The former Blue Ridge Mountain Resources (formerly Magnum Hunter Resources) and Eclipse Resources tied the knot and merged at the end of February, promptly renaming itself Montage Resources (see Blue Ridge Merges with Eclipse, Renamed to Montage Resources). The newly merged entity released its first quarter 2019 update last week. We found some fascinating details about Montage’s plans for 2019.
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Saudi Arabia Wants to Buy Piece of the Marcellus via Equinor

Saudi Arabia is sniffing around the Marcellus Shale. Bloomberg reports that super secret talks are happening between Saudi Aramco (largest oil company in the world, owned by the Saudi government) and Equinor, which until recently was called Statoil. Equinor is majority-owned by the government of Norway. The Saudis are considering “buying a stake” in or possibly a joint venture with Equinor. It seems Norway is hesitant to hop into bed with the Saudis. We don’t blame them.
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CNX 1Q19 & Beyond: Go Big (in the Utica) AND Go Home

CNX Resources released its first quarter 2019 update yesterday, which shows the company lost $87 million, as opposed to making $527 million in profit in 1Q18. Even so, CEO Nicholas DeIuliis announced the company is upping its drilling budget from the previously announced $700 million to instead spend $885 million, largely to drill more “deep dry” Utica wells. Go big or go home!
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M-U Transload Facility in OH Getting Gas-Fired Power Plant 2021

Aerial view of the Long Ridge Energy Terminal from the Ohio River

In January 2018 MDN brought you news from the new owners of what is now called the Long Ridge Energy Terminal in Monroe County, OH (transloading facility) that they were moving forward “quickly” with plans to build a 485-megawatt Utica gas-fired electric plant. The plan was to have it online and running in 2020. That’s now been pushed back to late 2021.
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BLM Auctions 75 Acres in OH’s Wayne Natl Forest for $209/Acre

Last week the Bureau of Land Management’s (BLM) Eastern States Office ran another oil and gas lease auction for federal land on the eastern side of the country. Up for auction was 2,456 acres in Ohio, Michigan and Mississippi. Only half of the property listed for auction actually brought bids and sold. Of the 2,456 acres offered, a piddly 75 acres, in two parcels, was located in Ohio’s Wayne National Forest (WNF)–in Monroe County. That is, 3% of all the acreage in the BLM sale was in the Ohio Utica–and yet that 3% brought in 69% of the revenue from the sale: $15,720 total. However, the amount paid per acre for the WNF parcels seems to be small–just $209 per acre. So who picked up the 75 acres for a song?
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Fed Gov’t Gives $20M Grant to Monroe, OH Shale-to-Rail Project

Long Ridge Energy Terminal (click for larger version)

We suppose if the money we pay in taxes to the federal government is going to be used for corporate welfare, this is the kind of welfare we’d like to see. Mind you, we don’t endorse nor like corporate welfare of any kind (whether it’s money for so-called renewable projects, or money for fossil fuel projects). But corporate welfare is a fact in our screwed up world, so let’s put it to good use by throwing what amounts to a rounding error in our federal budget, $20 million, to the Long Ridge Energy Terminal in Monroe County, OH for “rail and pipeline infrastructure improvements” to move more shale gas, oil and NGLs to market. The Long Ridge Energy Terminal, which used to be called the Center Port Transload Facility, completed an upgrade in July that allows more “unit trains” to be loaded/unloaded at the same time (see Former Ormet Site in OH Handles 3 Frac Sand Unit Trains at a Time). The new grant money will add a pipeline-to-rail transloading facility to the terminal.
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3 Counties, 5 Drillers Led OH’s 50% Increase in 2Q Gas Production

The Pareto Principle is alive and well in the Buckeye State. You may know it as the 80/20 rule, or in this case, the 75/25 rule. The rule that states roughly 80% of the results come from 20% of the effort. Last week MDN brought you the latest update from the Ohio Dept. of Natural Resources–their second quarter 2018 report showing all production coming from the Ohio Utica Shale (see Top 25 Producing Gas & Oil Wells in Ohio Utica for 2Q18). While MDN provided you with Top 25 lists showing the best-performing wells (both gas and oil) during 2Q, and while we provided you with a better spreadsheet to view the information than that provided by the ODNR itself, our analysis was basic and high level. Utica natgas production was up a big 42% over the same period last year, and Utica oil production was up 11%–a cumulative 50% increase when you convert it all into equivalents. The experts at S&P Global Platts have done a deep dive into the numbers and have found that three counties represent 75% of all production in 2Q18, and five drillers represent 75% of all production in 2Q18. Which counties and which drillers? Read on…
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Drilling Mud Co. Opens in Monroe County, OH, 40 New Jobs

American Mud Works held a ribbon-cutting ceremony last week to officially open up a new regional headquarters in Monroe County, OH. The company specializes in mixing drilling mud–the stuff used to cool drill bits as they chew away at solid rock some 1-2 miles below the surface. They also recycle used drilling mud and wastewater/brine. The company’s main headquarters is in Texas. They’re locating a branch operation in Monroe to service the Utica and Marcellus industries in our region. In the short-term, the new office, due to be fully operational in about four weeks, will staff up by hiring 30-40 people. However, American Mud has bigger goals in view. They aim to add more service lines and expand their operations down the road. The number of employees will likely go much higher as they expand. Let’s welcome American Mud and another 40 jobs to Appalachia!…
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