CONSOL Energy Narrows Future Marcellus/Utica Dev to 5 Counties
CONSOL Energy released its first quarter 2015 update on Tuesday. Like virtually every other Marcellus/Utica driller, CONSOL’s 1Q15 profits dropped quite a bit–in this case 32%. But there was plenty of good news in Tuesday’s update. CONSOL reports Marcellus Shale production was up an impressive 75% year over year for the first quarter. They cut their costs in the Marcellus–from $3.18 per Mcfe in 1Q14 to $2.62 per Mcfe in 1Q15–$0.56 per Mcfe improvement (18%). The company achieved all-in cash costs of only $1.67 per Mcfe in the Marcellus Shale, which “continues to be the growth engine of the company.” Meanwhile, CONSOL continues to ramp up their Utica program. The company is currently drilling Utica wells in four counties: Greene and Westmoreland counties in PA; Monroe County, OH; and Marshall County, WV. CONSOL says the Utica wells they are currently drilling will come online in the second half of this year. However, given the current low price climate and cutbacks, CONSOL streamlined both its Marcellus and Utica operations in 1Q15. They’ve narrowed future Marcellus development to primarily Greene, Washington and Allegheny counties in PA; wet Utica development to Noble County, OH; and dry Utica development to Monroe County, OH…
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Nearly two weeks ago there was a fatal accident at a Blue Racer Midstream condensate pumping skid in Noble County, OH in which an electrical contract worker was killed (see
MDN spotted a very brief mention that Noble County, OH signed a lease in February with First Penn Oil & Gas for 6.71 acres of county-owned land for $36,657, or $5,463 per acre. Which on the surface seems like a pretty good deal. We dug some more, having not heard of Penn Oil & Gas, and found that the Caldwell (Noble County), OH School Board also signed a lease with Penn, just a few weeks ago. The school is raking in the dough: terms were $5,400 for 38.6846 acres, or roughly $209,000.