Close-up on Petrogas Co: A New Player in the Ohio Utica?
A couple of weeks ago four companies won bids on 17 parcels totaling 719 acres of federal land (for Utica Shale drilling) in the Ohio Wayne National Forest (see OH Wayne National Forest – List of Auction Winners). We recognized three of the winners: Eclipse Resources, Flat Rock Development, and Gulfport Energy. But we didn’t recognize the fourth as a Utica driller: Petrogas Company. Then we spotted a couple of press releases from Petrogas touting their first “successfully purchased two oil and gas leases in the Eastern States” with the added statement they are “looking forward to exploring the potential in this area.” Petrogas says in its press release that it is an exploration and production company (E&P, or what we call a driller) “focused on the acquisition of properties in areas with significant oil reserves and drilling potential.” So we began to dig. First, the land Petrogas leased in WNF amounts to a grand total of 3.7 acres, for which they paid the princely sum of $2,705.50. No, they won’t be drilling on 3.7 acres any time soon. Then we further dug and discovered that Petrogas is a Chinese-backed company with an office in Houston, TX, that started life as an entertainment company and is operated by what appears to be one guy. A guy who apparently knows how to publish press releases that sound big and and important…
Read More “Close-up on Petrogas Co: A New Player in the Ohio Utica?”
Over the past four years MDN has monitored and reported on conventional driller Beck Energy and their ongoing difficulties with attempting to drill in Munroe Falls (Summit County), OH. You can see our list of stories stretching back to February 2013 
Rex Energy announced yesterday the company has cut a deal with Antero Resources to sell all of Rex’s “Warrior South Area” assets to Antero. Which may should like a big deal, but really isn’t. The assets sold include 4,100 net acres in perhaps the hottest part of the Ohio Utica Shale: Guernsey, Noble and Belmont counties. It also includes 14 Utica Shale wells. However, the wells are only producing 9 million cubic feet per day (MMcf/d) collectively. The sale price is $30 million–or $7,317 per acre. Rex says the acreage and wells are in a “non-core” area for the company. Rex, a driller focused mainly on the Marcellus/Utica (headquartered in State College, PA), has had its share of financial challenges. In December the company was warned by the New York Stock Exchange that the per share price is too low and the stock is in danger of being delisted (see 
American Water Management Services (AWMS) owns a wastewater injection well in Trumbull County that supposedly caused a low-level earthquake (that nobody could feel) in 2014. Two wells located at the site, both operated by AWMS, were “temporarily” shut down by the Ohio Dept. of Natural Resources following the quake (see 
Two members of Eclipse Resources’ top management team are playing musical chairs as part of the company’s plan to “accelerate growth” in 2017. Tom Liberatore, currently executive VP and COO is dropping the COO title and becoming executive VP of corporate development and geosciences. Meanwhile, Oleg Tolmachev, currently senior VP of drilling and completions is becoming executive VP and COO. Tolmachev’s star is clearly rising and he is now the man running the Utica/Marcellus drilling program for the company. In the same press release, the company said it has now completed and brought online five Utica wells in Monroe County, OH. The wells are the first dry gas Utica wells to use Eclipse’s new “Gen-3” completion design. What is Gen-3? And what does the musical chairs at Eclipse have to do with Gen-3?…
On Dec. 31, 2011, the Youngstown, OH area experienced a 4.0 earthquake that was later determined to be caused by a wastewater injection well (see 
In April 2015 the Obama administration’s U.S. Fish and Wildlife Service (USFWS) did a disservice to not only the drilling industry, but the wind industry, farmers and the construction industry. USFWS listed the northern long-eared bat as “threatened” under the Endangered Species Act (see 
As we reported in December, Ohio legislators sent Gov. John “foreigner hunter” Kasich a bill at the end of the year with provisions that clear up language regarding tax exemptions for the oil and gas industry (see 
In April 2016 MDN told you about the Guernsey Power Station–a new Utica/Marcellus natural gas-fired electric generating plant proposed for Guernsey County, OH (see 
In August, the Federal Energy Regulatory Commission (FERC) issued a favorable environmental assessment (EA) for three Spectra Energy projects: Access South, Adair Southwest and Lebanon Express (see 
The legal beagles at global law firm Norton Rose Fulbright continue to do us all a huge favor. Researchers at the law firm issue a quarterly legislative action update looking at bills and laws previously voted on, and new bills/laws introduced, affecting the oil and gas industry in Pennsylvania, Ohio and West Virginia. The “Quarterly legislative action update: Marcellus and Utica shale region” for 4Q16 (full copy below) begins with a quick listing by state for existing or new laws introduced, with descriptions for each bill/law. This is, in one place, pretty much everything you need to know about what new laws (i.e. regulations) are coming down the pike that will affect the Marcellus and Utica Shale drilling industry…
Based on a recent uptick in new permits issued in PA, OH and WV, a writer for the Daily Caller says “a wave of new fracking is about to hit Appalachia.” We agree! Recent trends all point to an increase in drilling–which is good for landowners, jobs, taxes and the environment (more gas lowers CO2 emissions, if you believe in man-made global warming). Here’s a startling statistic: Fracking is estimated to have generated 4.6 million new jobs and $3.5 trillion in new wealth–in just three years (see today’s companion story). Surf’s up! Here’s the evidence that a new “wave” of fracking is on the way in our neighborhood…
The GoMarcellusShale Forum where landowners and others interested in shale drilling hang out and swap messages back and forth was recently updated to become 
Eclipse Resources, a Marcellus/Utica pure play driller headquartered in State College, PA that drills mostly in Ohio, announced yesterday they sold 9,900 net acres in eastern Noble County and western Monroe County, OH for $63.8 million to an undisclosed buyer. That works out to be $6,444 per acre. The assets are in areas that are (currently) undeveloped, according to the company, and not in the “core” of where Eclipse wants to drill. Here’s the company announcement…
As we previously noted, last week the Bureau of Land Management (BLM) proceeded with an online auction for BLM-controlled land in Ohio’s Wayne National Forest (see