Statewide OH

Antero Resources | Energy Companies | Energy Services | Harrison County | Industrywide Issues | MarkWest Energy | Noble County | Ohio | Pipelines | Processing Plants | Statewide OH

Antero Resources Inks Deal with MarkWest for Ohio Utica Shale
November 7, 2012November 7, 2012

On Monday MDN told you about Antero Resources’ sale of their Piceance Basin assets so they can laser focus on the Marcellus and Utica Shale region (see this MDN story). A day later—yesterday—Antero followed up that big announcement with another big announcement: They’ve signed a deal with MarkWest for pipelines and processing in Noble and Harrison counties (Ohio) to give Antero’s operations in the Ohio Utica Shale a boost. Interestingly, the Harrison County project will yield ethane that MarkWest/Antero will send to the new ATEX ethane pipeline that runs all the way to the Gulf.

Terms of the deal between Antero and MarkWest were not disclosed. Here’s the joint press release announcing the particulars of the deal:

Read More “Antero Resources Inks Deal with MarkWest for Ohio Utica Shale”
Energy Companies | Gulfport Energy | Harrison County | Ohio | Statewide OH | Utica Shale

Gulfport Energy 3Q12: Profits Up, Drilled 5 New Utica Wells
November 7, 2012November 7, 2012

Gulfport Energy Corporation, a company that has two of the highest producing natural gas wells in the Ohio Utica Shale, released their third quarter financial and operational update yesterday. Counter to most other large drillers, Gulfport showed a slight profit in 3Q12—of $0.5 million—on $60.5 million in revenue. If not for some income tax expenses their net income for 3Q12 would have been $16 million.

In the 3Q12 update we get production details for a sixth horizontal well drilled by Gulfport in the Utica—the BK Stephens 1-16H well (in Harrison County, OH), which is producing an initial 1,224 barrels of condensate per day, 6.9 million cubic feet of natural gas per day, and 759 barrels of natural gas liquids per day.

Read More “Gulfport Energy 3Q12: Profits Up, Drilled 5 New Utica Wells”
Economic Impact | Industrywide Issues | Jobs | Ohio | Pennsylvania | Statewide OH | Statewide PA | Supply Chain | Washington County

Hotel in Rural Western PA Makes it Big from Marcellus/Utica
November 6, 2012November 6, 2012

Another feel good story about a small hotel that made it big because of the Marcellus and Utica Shale. This story comes from rural Bentleyville, PA, not far from West Virginia and Ohio:

Read More “Hotel in Rural Western PA Makes it Big from Marcellus/Utica”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH | Utica Shale

The Latest Permit/Drilling Numbers for OH Utica Shale
November 5, 2012November 5, 2012

A quick update on numbers for the Utica Shale, including how many permits have been issued to date in the Utica, how many wells have been drilled, how many rigs are operating and how many permits have been issued county by county, courtesy MDN friend Bob Downing of the Akron Beacon Journal:

Read More “The Latest Permit/Drilling Numbers for OH Utica Shale”
Hydraulic Fracturing | Industrywide Issues | New York | Ohio | Pennsylvania | Pipelines | Statewide NY | Statewide OH | Statewide PA | Statewide WV | Supply Chain | West Virginia

ShaleNavigator Cloud-Based Mapping Service Continues Expansion [Free]
November 5, 2012November 5, 2012

MDN friend and “partner in crime” Ed Camp (from ShaleNavigator) released a press release on Friday to call attention to some of the latest and greatest features he’s added to the ShaleNavigator service—the web’s premier cloud-based shale mapping system. Ed’s ShaleNavigator maps are the basis for the MDN Marcellus and Utica Shale Databook series (see here for more info on the Databook).

We’re happy to bring you Ed’s latest press release, along with his offer of a free 7-day trial:

Read More “ShaleNavigator Cloud-Based Mapping Service Continues Expansion [Free]”
Industrywide Issues | Ohio | Pipelines | Statewide OH | Statewide WV | West Virginia

Both Major & Minor NatGas Pipelines Go Unmapped in WV & OH?!
November 5, 2012November 6, 2012

According to a former oil and gas inspector with the West Virginia Dept. of Environmental Protection, West Virginia and Ohio fail to map and keep track of where both major interstate and minor regional and gathering natural gas pipelines are built. Over time, according to this former official, people will forget. It also means there’s no regular inspection of pipelines for corrosion and leaks.

Read More “Both Major & Minor NatGas Pipelines Go Unmapped in WV & OH?!”
Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake Energy Still in Love with Utica Shale
November 5, 2012November 6, 2012

Even though Chesapeake Energy posted a $2.1 billion loss for the third quarter, in an analyst call on Friday, Chesapeake CEO Aubrey McClendon (“bad boy” poster child for anti-drillers) said he’s thrilled with the results the company is getting from the Utica Shale.

Here’s a recap of what McClendon and other top Chesapeake executives’ said on Friday about the Utica:

Read More “Chesapeake Energy Still in Love with Utica Shale”
Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Sandy’s Affect on Drillers in the Marcellus & Utica Shale
October 31, 2012October 31, 2012

Although Hurricane turned Super Storm Sandy gave New York City, Delaware and New Jersey a big, black eye (and we grieve for their losses), further inland Marcellus and Utica Shale drillers prepared for and appear to have avoided any major impacts from the storm. Some production was and still is shut in to avoid potential problems, but given the storm is now mostly gone from the Marcellus and Utica Shale region, shut in production should quickly come back online.

Here’s a Sandy report from four of the largest drillers in the Marcellus:

Read More “Sandy’s Affect on Drillers in the Marcellus & Utica Shale”
Economic Impact | Industrywide Issues | Jobs | Ohio | Statewide OH | Supply Chain

Plugging in to the Marcellus & Utica Shale Supply Chain
October 31, 2012October 31, 2012

Although some of the initial frenzy of activity has subsided, drilling in Ohio’s Utica Shale continues, and along with it comes a growth in business, jobs and economic impact.

Here are a few stories of Ohio businesses that have seen a major impact from plugging in to the Marcellus and Utica Shale “supply chain”:

Read More “Plugging in to the Marcellus & Utica Shale Supply Chain”
Economic Impact | Industrywide Issues | Ohio | Pennsylvania | Statewide OH | Statewide PA | Statewide WV | West Virginia

Sandy’s Effect on Marcellus/Utica Shale Drilling & Production
October 30, 2012October 30, 2012

It seems the entire country watched with morbid fascination as Hurricane-now-Super Storm Sandy slammed into the northeast yesterday. The exceptionally large and powerful storm—some 1,000 miles across—lingers over what is essentially the Marcellus and Utica Shale region of the U.S. As of early Tuesday more than 5 million people are without power due to storm damage. New York was heavily hit with the highest storm surge to hit Manhattan in over 200 years, flooding subway tunnels and covering some city streets. The New York Stock Exchange is closed for two consecutive days for the first time since 1888. Truly history in the making.

How will Sandy affect drilling, production and refining in the Marcellus? Reports came in yesterday that refineries were shutting down in advance of the storm. Production coming from the field likely will not be affected all that much, but drilling is another matter. Some drilling operators reported they would lay down rig masts until the storm passes.

Read More “Sandy’s Effect on Marcellus/Utica Shale Drilling & Production”
Columbiana County | Dominion Energy | Energy Services | Industrywide Issues | M3 Midstream | Ohio | Pipelines | Processing Plants | Statewide OH

Dominion Signs Deal with M3 to Pipe NatGas/NGLs to New Plant
October 26, 2012October 26, 2012

Dominion Resources (a subsidiary of Dominion) has penned an agreement with M3 Ohio Gathering to hook up to wells in Ohio’s Utica Shale and move up to 180 million cubic feet per day of natural gas from those wells to the Kensington Processing Plant in Columbiana County, Ohio. The new plant is currently being built by Chesapeake Midstream, M3 and EV Energy Partners (see this MDN story for background).

Here’s the details on Dominion’s deal with M3 to pipe natural gas and gas liquids to the new processing plant:

Read More “Dominion Signs Deal with M3 to Pipe NatGas/NGLs to New Plant”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Industrywide Issues | M&A | Ohio | Statewide OH | Statewide WV | West Virginia

Magnum Hunter Buys Virco for $106.7M with 51,500 Net Acres
October 25, 2012October 25, 2012

Magnum Hunter announced this morning they’ve purchased 100% of privately-held Viking International Resources, Inc. (“Virco”) for $106.7 million using a stock swap and cash. The deal means Magnum Hunter will get an additional 51,500 net acres in the Marcellus and Utica Shale in West Virginia and Ohio, pushing their total acreage to something just over 166,000 acres throughout the Appalachian region. Management already has it’s eye on the new acreage and has identified 74 new drilling locations in the Marcellus and 31 new locations in the Utica Shale.

Details on the transaction and what it means:

Read More “Magnum Hunter Buys Virco for $106.7M with 51,500 Net Acres”
Chesapeake Energy | Economic Impact | Energy Companies | Industrywide Issues | Ohio | Statewide OH | Utica Shale

Reuters Says Utica Shale Boom is Really a Secret Bust
October 22, 2012October 22, 2012

The mighty Reuters news agency, no friend of shale gas drilling, is taking aim at the Utica Shale in Ohio. A new article by Reuters attempts to sow the seeds of doubt about the size and potential of the Utica Shale. Their article opens by quoting drilling “bad boy” Aubrey McClendon, CEO of Chesapeake who famously said last year the Utica contains $500 billion worth of hydrocarbons. Reuters’ contention? Don’t believe it.

A key point of the article is that Ohio is only reporting oil and gas production numbers annually, not monthly as other states typically do. That irks Reuters, so they’re spinning it as an industry cover-up to conceal the “real truth” that the Utica is not as productive as McClendon and “the industry” is leading people to believe. It’s the old “it really ain’t all that big, it’s just a Ponzi scheme” meme started by The New York Times last year (see this MDN story).

Read More “Reuters Says Utica Shale Boom is Really a Secret Bust”
Industrywide Issues | Ohio | Statewide OH | Wealth Management

Caution: Royalty Buyers Coming Out of the Woodwork in Ohio
October 16, 2012October 16, 2012

A tale of caution for landowners in Ohio and in other areas where landowners have recently signed leases to allow drilling for shale gas. One landowner in Ohio reports being called by a Texas company looking to buy his royalty rights. The landowner already signed a lease and got his signing bonus. The company in question wants to now purchase the man’s future royalty payments—at a discount of course.

This is similar to companies buying other structured settlements—like someone who successfully sues for damages from an accident, but the payments are made over the course of several years. Or someone who wins a state lottery that has a payout over 25 years. Companies will offer to pay you less than what you would make over the course of time, but you get a lump sum payment now, up front.

Read More “Caution: Royalty Buyers Coming Out of the Woodwork in Ohio”
Carrizo Oil & Gas | Crawford County | Energy Companies | Halcon Resources | Mercer County | Ohio | Pennsylvania | Statewide OH | Trumbull County

Mystery Buyer of Carrizo’s Northern Utica Acreage Revealed
October 16, 2012October 17, 2012

Yesterday MDN reported that Carrizo Oil & Gas had sold off it’s interest in lease acreage in Ohio’s northern Utica Shale region for $43 million (see this MDN story). Carrizo did not identify the buyer, but the enterprising Youngstown Business Journal did.

Here’s who it is:

Read More “Mystery Buyer of Carrizo’s Northern Utica Acreage Revealed”
Ohio | Statewide OH

Where are the ‘Sweet Spots’ in Ohio’s Utica Shale?
October 15, 2012October 15, 2012

According to a professor of geology at Youngstown State University, the Mahoning Valley, the area around Youngstown in northeastern Ohio, is one of the “sweet spots” for natural gas drilling in Ohio. Is that statement accurate? MDN wondered, so we decided to analyze the latest numbers from the Ohio Dept. of Natural Resources (ODNR). Our analysis, along with a a couple of maps, is embedded below.

First, the statement from the Youngstown professor:

Read More “Where are the ‘Sweet Spots’ in Ohio’s Utica Shale?”