Ohio

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    Another Antero Utica Well Top of the Heap: IP Rate of 40.2 Mmcf/d!

    super achieverCaution: MDN’s comments below are not completely accurate. It seems that Antero pulled a fast one on us, and unlike their previous updates, they have (starting with this update) used gas equivalents in their production reporting. The Antero Yontz well is still the highest initial production methane (natural gas only) well in the OH Utica. That’s not to take away from the incredibly productive Milligan well mentioned below–but much of Milligan’s production is NGLs and not methane. The Milligan is still a great (and profitable) well! It’s just not the top dog natgas producing well we thought it was.

    Wow, we’re speechless! (And that’s saying something.) Last August MDN told you that Antero Resources had de-throned Gulfport Energy for having the highest yielding 24-hour rate Utica Shale well (see Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d). Antero’s amazing Yontz well is located in Monroe County, OH, south of Gulfport’s super achieving wells in Belmont and Harrison counties. South continues to be better. Yesterday Antero released an operational update, and tucked away in that update is a new reigning Utica champ. Antero reports the Milligan 2H well in Noble County produced a 24 hour initial production (IP) rate of 40.2 Mmcf/d gas equivalent (it produces lots of hydrocarbons other than methane, so the number is converted to gas for apples to apples comparisons). That is the single highest producing shale well we’ve ever heard of–anywhere. No wonder Aubrey McClendon once famously said the Utica Shale is the biggest thing to hit Ohio since the plow!

    Aside from the Milligan 2H, there’s a lot of other news in the Antero update, including a very active Marcellus Shale drilling program (they currently have 15 rigs in the Marcellus), and the first of three compressor stations to help get their gas to market has come online in the Utica (two others are behind schedule). Here’s the full Antero update for 4Q13, with a bit of forward looking to 2014…
    Read More “Another Antero Utica Well Top of the Heap: IP Rate of 40.2 Mmcf/d!”

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    OH Company Doubles Jobs/Revenue by Targeting Utica Shale Drillers

    Dan Pottmeyer, president of Producers Service Corp located in Zanesville, OH, says his company is the only fracking company that’s “home-grown in Ohio.” (That’ll be good news for OH Gov. John “foreigner hunter” Kasich. He likes ’em home-grown.) Pottmeyer’s company used to send oilfield services crews into Ohio’s conventional oil and gas fields for low-volume fracking work. However, after purchasing new equipment and more than doubling the work force, Pottmeyer now sends his crews into the field to work on Utica Shale wells–competing with the likes of oilfield services titans like Halliburton and Baker Hughes. Although he doesn’t disclose figures for the privately-held company, Pottmeyer says revenue has more than doubled in the past couple of years.

    The Producers Service Corp story is a good story–an important story–of how local businesses can figure out how to plug in to the Marcellus and Utica Shale supply chain. Which is why we love to bring you stories like this one…
    Read More “OH Company Doubles Jobs/Revenue by Targeting Utica Shale Drillers”

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    Glow in the Dark: Are We Being Irradiated by Frack Waste?

    radioactive zombiesThe fear-mongering continues by those who oppose shale drilling. One of the scare tactics used by anti-drillers is to say that frack wastewater and drill cuttings (leftover rock and dirt) are loaded with radiation and by disposing of it in landfills and via wastewater recycling facilities we’ll all end up irradiated, dying long slow deaths from cancer. Or worse yet, we’ll all become radioactive zombies. Hey, maybe someone could make a movie about that! (Unbelievably, they already have: see Friday Foibles: The Scientific Link Between Fracking and Zombies.)

    The Ohio EPA and Dept. of Natural Resources (ODNR) is not much impressed by all these radioactivity claims. Neither are we. One of the favorite drive-by media claims is that drill cuttings are setting off radiation alarms at landfills in record numbers (“hundreds” of times a year). Thing is, those same alarms go off when medical waste is hauled in too–they’re that sensitive that even radioactive dyes are picked up by them. It proves NOTHING. Yet you see that argument often used–fracking dirt contains radition! Whatever. Here’s the latest drive-by attempt to scare people with radioactive waste concerns, this one emitted by the Columbus Dispatch…

    Read More “Glow in the Dark: Are We Being Irradiated by Frack Waste?”

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    Hess Goes All in for Shale Drilling in 2014, $550M on Utica Shale

    Over the past couple of years, Hess Corporation–the company whose name you recognize because you probably have filled up your car at one of their gas stations–has been transforming itself from petroleum products marketer (like retail gas stations) to oil and gas driller. Hess still owns some of those gas stations–but not for long. They’re in the process of spinning off retail gas stations into their own company so they can sell it (see Hess Continues Transformation With Plans for Retail Spinoff). Early last year Hess’ plans to become an E&P company was challenged by one of their stockholders (see Corporate Raider Paul Singer Tries to Force Hess Out of Shale). He was obviously unsuccessful in trying to bully Hess into doing his bidding. (Note to Chesapeake: you should have followed Hess’ example.)

    Yesterday Hess released their 2014 capital and exploration budget, and it shows Hess has gone “all in” for shale drilling. The Hess capex budget calls for a whopping $5.8 billion in spending–of that $2.85 billion (49%) will be spent on shale drilling. The lion’s share of Hess’ shale budget will go to drilling for oil in North Dakota’s Bakken Shale. However, they have allocated $550 million for drilling in the Utica Shale this year, with plans to sink 35 new Utica wells. Here’s the full Hess budget released yesterday…
    Read More “Hess Goes All in for Shale Drilling in 2014, $550M on Utica Shale”

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    Lease Signing 101 for Landowners – A Short Q&A with OH Attorney

    What should landowners know–what questions should they have answers for–before they sign an oil and gas lease? Attorney Dan Gerken from Ohio law firm Bricker & Eckler tackles the important questions landowners should know the answers to in an online post that we think of as “lease signing 101.” It doesn’t hurt to cover the basics from time to time as new landowners are approached and begin the process of trying to figure out what they should do.

    Here’s Dan’s good all-around “basics” Q&A advice:
    Read More “Lease Signing 101 for Landowners – A Short Q&A with OH Attorney”

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    OH House Dem Makes Another Run at Nosebleed 7.5% Severance Tax

    The reliably anti-drilling Ohio State Representative from Youngstown, Robert F. Hagan, would prefer to ban shale drilling outright. Since that’s not going to happen in OH (at least not any time soon), he wants to kill it another way. Last June Hagan introduced a bill in the OH House that would enact a 7.5% drilling tax on Utica Shale drilling, which would of course effectively kill all Utica drilling henceforth (see Youngstown Democrat State Rep Wants to Hike Severance Tax to 7.5%). You have to hand it to those OH Dems–they’re real johnny one-notes: tax more, spend more.

    Hagan is trotting out his obscenely high tax bill once again, trying to whip up support. Good luck with that one Bobby…
    Read More “OH House Dem Makes Another Run at Nosebleed 7.5% Severance Tax”

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    School in Belmont County, OH Gets $7,250/Acre from Gulfport

    Some 10 miles “as the crow flies” from Gulfport Energy’s super well, the Irons 1-4H (pumping out 30 million cubic feet of natural gas per day) sits the small community of Shadyside and the Shadyside Local School District. The school has just leased 20 acres to Gulfport for drilling under (not on), which may seem like not much. However, when you’re getting $7,250 per acre as a signing bonus, and 20% royalties on anything produced, the school’s 20 acres is way more than “not much.”

    Shadyside School’s lease with Gulfport will net them an initial check for $145,000–just for the signing bonus. Gulfport is signing up the neighbors around Shadyside too. Will the school’s property be drilled under this year? Maybe! Gulfport is spending $630 million to drill 95 new Utica wells–many of them in Belmont County, OH where Shadyside is located and where Gulfport has had huge success already…
    Read More “School in Belmont County, OH Gets $7,250/Acre from Gulfport”

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    Belmont County School Gets Huge Checks from Utica Leases

    A local school district in Belmont County, OH–Union Local Schools–is reaping huge rewards from leasing land for Utica Shale drilling. Union Local Schools has already received a lease signing bonus check for $519,750, and a second check is on the way for $112,000–and that’s before a penny of royalties are paid (19% for one lease agreement, 20% for a second lease agreement).

    Here’s the low-down…
    Read More “Belmont County School Gets Huge Checks from Utica Leases”

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    Carrizo Releases IP Numbers for Guernsey County, OH Utica Well

    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”

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    Sunoco Logistics Answers NGL Pipeline Concerns in Portage, OH

    Sunoco Logistics personnel were treated last week to a variety of silly concerns about an NGL pipeline they’re proposing through Portage County, OH–concerns like people keeling over dead because of undetected leaks in the buried pipeline and mass contamination of water aquifers. The anti-drillers are so good at distributing lies and distortions it’s no wonder average folks are concerned. You’d think a pipeline was the equivalent of an environmental holocaust.

    Even though pipelines are the safest form of transportation in existence, people turned out last week and packed the local county commissioner’s office to express their unfounded concerns. Here’s how it went:
    Read More “Sunoco Logistics Answers NGL Pipeline Concerns in Portage, OH”

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    Rex Energy 4Q13: Several Marcellus Experiments Paying Off

    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”

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    Quarterly OH Utica Shale Report from CSU: Huge Economic Impact

    Each quarter, researchers at Cleveland State University publish the Ohio Utica Shale Gas Monitor, a report that looks at the economic impacts of Utica and Marcellus Shale drilling in Ohio. The latest report was issued a few weeks ago and MDN has just now been able to locate a copy to share with you (full copy of the 39-page report embedded below). What does the report tell us? The number of counties with “strong” shale activity has gone to eight from 15, and the number of counties with “moderate” shale drilling activity has gone to five from 30. That’s a head-turner! The “strong” counties, in addition to producing methane (or dry gas), are also producing “commercial amounts” of natural gas liquids (wet gas).

    Here’s a good overview of the report as provided by NortheastPA.com:
    Read More “Quarterly OH Utica Shale Report from CSU: Huge Economic Impact”

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    Utica/Marcellus Construction Spending Rockets in Wheeling Area

    According to McGraw Hill Construction, the Wheeling, WV Metropolitan Statistical Area, which includes Ohio and Marshall counties in WV and Belmont County in Ohio, saw construction explode from $60.3 million in 2012 to $1.57 billion in 2013–a 29-fold increase. The vast majority of that explosion in construction came from–you guessed it–the Marcellus and Utica Shale. Midstream companies Williams and Blue Racer spent the majority of that on new processing plants and pipelines in the area.

    This is incredibly good news for that area of the Ohio Valley. The even better news? Ironworkers Local No. 549 predicts this kind of spending by the drilling industry will go on for at least another 5-10 years. Wow!…
    Read More “Utica/Marcellus Construction Spending Rockets in Wheeling Area”

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    Belmont County Continues to be One of Hottest Spots in OH Utica

    hot spotMDN has previously told you, on a number of occasions, that an early indicator of where drilling will soon heat up is to watch the local county land recorder’s office–the place where they keep official copies of property deeds. If it’s crowded in the local land records office, that means drillers are ready to make offers to landowners and want to start drilling. Of course they first have to figure out who owns the mineral rights, hence the activity in title searchers and abstactors checking deeds.

    Over a year ago we told you about the crazy lines and overpacked recorder’s office in Belmont County, OH (see Belmont County, OH Deed Research Impacts Local Library Too). Our prediction held true as Belmont has become one of the hottest hot spots in the eastern Ohio Utica Shale. You might think a year later things would have settled down at the Belmont County Recorder’s Office. Not so. Last Wednesday when Belmont County Recorder Mary Catherine Nixon arrived at the office at 8:30 am, she found 120 people waiting in line to get in. Oy vey!…
    Read More “Belmont County Continues to be One of Hottest Spots in OH Utica”

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    Radio Disney Pressured, Pulls Out of OH O&G Education Program

    Radio Disney had been participating in a tour of elementary schools in Ohio as part of an education project that, among other things, educates kids on how oil and gas drilling and pipelines work. Called “Rocking in Ohio” the program’s intent is to foster interest in science and technology. Because the tour is sponsored by the Ohio and Gas Energy Education Program and partially funded by the drilling industry, the anti-drilling brigade came out in force and has now pressured Disney into withdrawing from the program. We can’t have the truth getting out there in song and dance, ya know!

    Few American-based media outlets are covering the story, so we have to get the Disney story from the pro-terrorist Al Jazeera America network. You know, the network that paid Al Gore a gazillion dollars for his dying Current TV network, finally making Al a rich man and giving Al Jazeera access to American airways to spread their garbage. The network that hires CNN has-beens like Soledad O’Brien to put a pretty face on an ugly network. The network that loves to air terrorists beheading people? Yeah, that network–the network owned by Middle Eastern oil sheiks who fear fracking will end their massive wealth gives us the Disney pulling out in Ohio story…
    Read More “Radio Disney Pressured, Pulls Out of OH O&G Education Program”

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    Forced Pooling in Ohio Utica Shale on the Rise, Sadly

    Drillers in Ohio’s Utica Shale are increasingly using the state’s “unitization” or forced pooling laws to force landowners who don’t want drilling to be included in drilling units where a majority of the neighboring land is leased. According to an article in the Akron Beacon Journal, 22 such requests have been filed in Ohio to date. Of those 22 filed, 6 were approved, 6 were resolved or dropped, and 10 are pending.

    We know the arguments for and against forced pooling, and you know where we stand on the issue (we take a dim view of it), so we won’t belabor the point. Here’s the Beacon Journal’s update on some of the forced pooling cases in eastern Ohio, including which drillers are doing the forcing, and the results…
    Read More “Forced Pooling in Ohio Utica Shale on the Rise, Sadly”