Utica Shale

1st NRG | Energy Companies | Utica Shale

1st NRG Again Declares Their Intention to Drill the Utica, Maybe
December 17, 2013December 17, 2013

Something MDN finds amusing. Every now and again 1st NRG, a Denver-based exploration & production or “drilling” company pokes it’s head up and issues a press release to say in essence, “We’re still here, we still have 7,000 acres of leases in the Utica Shale, and we really really really really are gonna drill that acreage. Soon. Someday. As soon as we get the money. Really soon now.” We’ve chronicled this trawling-for-investors-by-press-release routine since October 2012 (see 1st NRG category on MDN for our previous stories).

Here’s the latest $99 press release that declares 1st NRG’s undying love for the Utica, along with their undying love for Wyoming’s Powder River Basin:
Read More “1st NRG Again Declares Their Intention to Drill the Utica, Maybe”
American Energy Partners | Energy Companies | Utica Shale

McClendon Plan to Raise Additional $2B in “Unit” Offering
December 16, 2013December 16, 2013

Investors who want a piece of Aubrey McClendon’s plans to develop the Utica Shale are about to get a chance. On Friday, the Wall Street Journal and other media outlets disclosed that McClendon’s new company, American Energy Capital Partners, has filed with the Securities and Exchange Commission to sell up to 100 million “units” (something like a stock) for $20 per unit in an effort to raise up to $2 billion. McClendon plans to use the money to “develop or buy onshore oil and natural gas properties in the United States.” We imagine most of that will be focused on the Utica Shale where McClendon continues to focus his time and energy (see Exclusive: McClendon Buys 24K Acres of SWEPI Leases in OH Utica).

AECP has already raised $1.7 billion (see McClendon Gets a Little Help ($1.7B) from His Friends in OH Utica). Word of advice to Aubrey: Don’t sell any of those units to Carl Icahn…
Read More “McClendon Plan to Raise Additional $2B in “Unit” Offering”
Hydraulic Fracturing | Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Very Cool Map from ODNR Showing OH Utica Wells Permitted/Drilled
December 13, 2013December 13, 2013

Last week the Ohio Dept. of Natural Resources (ODNR) released a very handy map that shows where Utica Shale drilling is happening in the state. It has different colored dots to denote where permits have been issued, where wells have been drilled, and where wells have been drilled and are now producing. Running along the right bottom corner is a tally (as of 12/6/13) for how many permits have been issued by driller, which now totals over 1,000 permits.

We really like this map, and you think you will to! Here it is:
Read More “Very Cool Map from ODNR Showing OH Utica Wells Permitted/Drilled”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | Monroe County | Noble County | Ohio | Pipelines | Ritchie County | Tyler County | Utica Shale | Washington County (OH) | West Virginia

Magnum Hunter 2014 CapEx: Utica/Marcellus
December 13, 2013December 13, 2013

In our season of 2014 guidance statements, Magnum Hunter Resources has just issued theirs. And what do we find when we open this particular Christmas present? The company will spend $400 million on capital expenditure projects in 2014, and the vast majority of it will go to the Utica and Marcellus Shale. Magnum Hunter plans to lease more acreage in the Marcellus/Utica, increase drilling rigs from two to three, and build out more pipelines in the northeast too. The Ohio Utica is a particular focus for Magnum Hunter in 2014.

Here is their 2014 blueprint, including which counties in OH and WV will see drilling action from Magnum Hunter in 2014:
Read More “Magnum Hunter 2014 CapEx: Utica/Marcellus”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

The Secret Back Room Deal to Raise OH’s Utica Shale Tax
December 12, 2013December 11, 2013

Ohio’s top two industry trade groups, the Ohio Oil and Gas Association (OOGA) and the Ohio Petroleum Council (OPC) are not “on the same page” when it comes to the Republican raise-taxes-on-Utica-drilling plan 3.0. MDN recently told you about the latest incarnation of Gov. John Kasich’s desire to “spread the wealth around” in classic socialist fashion (see OH Repubs Offer Excuses Why This Time High Utica Taxes are OK). OOGA was in on the secret dealings to craft the latest tax hike (shame on them). OPC was not and so far they’re staying neutral and not giving their support. Not yet anyway. Let’s hope it stays that way.

The story about OOGA vs OPC in raising Utica Shale taxes:
Read More “The Secret Back Room Deal to Raise OH’s Utica Shale Tax”
Energy Companies | Ohio | PDC Energy | Statewide OH | Statewide WV | Taylor County | Utica Shale | West Virginia

PDC Energy to End Marcellus Drilling in 2014, Continue in Utica
December 11, 2013December 11, 2013

It’s the “Get out an update on what we plan to do in 2014” time of year. Doesn’t exactly roll off the tongue like “It’s the most wonderful time of the year!” End of year is not only about holidays but also about telling investors what they can expect next year–how a company plans to make money and provide a good return. Even though these statements are sometimes routine and dry, often you find interesting details when you pick through them. Like yesterday’s 2014 guidance statement from PDC Energy, a driller in both the Marcellus and Utica Shale.

In a low-key but to us surprising announcement, PDC’s statement says they will suspend drilling in the Marcellus in 2014. They plan to finish drilling four wells already under way in Taylor County, WV and then not drill any more Marcellus wells, but instead concentrate their time and effort on the Utica Shale and on Colorado’s Wattenberg Field. For those interested in Marcellus and Utica drilling, reading these updates is anything but dry! Take time to look over PDC’s plans for 2014, particularly their plans for the Utica…
Read More “PDC Energy to End Marcellus Drilling in 2014, Continue in Utica”
Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport Energy Beefs Up Management Team for OH Utica
December 11, 2013December 11, 2013

Gulfport Energy may be based in Oklahoma City, OK, but their heart (and most of their focus) is in Ohio–in the Utica Shale. Gulfport is one of the premier Utica drillers with some of the most impressive wells drilled to date (see Gulfport’s New Record-Breaking Well in Belmont Cnty – 30.3 Mmcf/d). In keeping with their laser focus on the Utica, Gulfport announced yesterday a bunch of new hires and promotions–all of them focused on the Utica Shale.

At the top of the hit parade is a brand new Chief Operating Officer (COO) for the Utica–Ross Kirtley–who was previously a VP with Sandridge Energy. Robert Jones was appointed VP of drilling for Ohio, Mark Malone was appointed VP of operations for Ohio, and Ty Peck was appointed Managing Director of Midstream Operations. Certainly seems like a pretty major restructuring on the part of Gulfport as they prepare to do more great things in the OH Utica. Here’s the press release with details…
Read More “Gulfport Energy Beefs Up Management Team for OH Utica”
Belmont County | Lease & Royalty Payments | Ohio | Utica Shale

Utica Shale Lease May Pull OH Volunteer Fire Dept from Bankruptcy
December 10, 2013December 10, 2013

We’re not sure of the circumstances that led the Neffs (Belmont County), OH Volunteer Fire Department to go more than $1 million in the hole–but that’s where they are. The miracle that may lift them out of bankruptcy and put them back on firm financial footing is the Utica Shale. Specifically, the opportunity to lease fire department-owned land for Utica Shale drilling.

The interesting (to MDN) aspect of this story is the very generous terms Neffs VFD is getting for the lease of 56.4 acres…
Read More “Utica Shale Lease May Pull OH Volunteer Fire Dept from Bankruptcy”
Industrywide Issues | Ohio | Statewide OH | Taxation | Utica Shale

OH Repubs Offer Excuses Why This Time High Utica Taxes are OK
December 10, 2013December 10, 2013

Speaker of the Ohio House William G. Batchelder (Republican-Medina), Speaker Pro Tempore Matt Huffman (Republican-Lima), and other members of the Ohio House Republican Caucus offered their pathetic excuses on why this time it’s a-OK to steal money from Ohio landowners and drilling companies and give it to other residents of Ohio–in the form of an income tax break. Apparently there’s lack of spine to do the right thing and reduce spending in Ohio (although that particular disease is not endemic to Ohio).

Here’s the Republican so-called leadership’s bland, generic ~~excuses~~ statement about why it’s OK to raise taxes on drilling this time:
Read More “OH Repubs Offer Excuses Why This Time High Utica Taxes are OK”
Belmont County | Energy Companies | Lease & Royalty Payments | Ohio | Rice Energy | Utica Shale

Belmont County, OH Waiting for $3M Lease Check from Rice Energy
December 10, 2013December 10, 2013

In early October MDN told you Rice Energy had cut a deal with Belmont County to pay the county a $7,500 per acre signing bonus, more than the $5,900 per acre it promised to private landowners in the area (see Rice Pays Belmont County Higher Signing Bonus than Landowners). The lower per acre no doubt rankled some landowners–but many of them already have their money. So far, the county does not.

When will Belmont County get its $3 million check from Rice Energy? Because they really need it…
Read More “Belmont County, OH Waiting for $3M Lease Check from Rice Energy”
Ohio | Statewide OH | Utica Shale

Ohio Passes 1,000 Utica Shale Permits Issued, No End in Sight
December 6, 2013December 6, 2013

Three cheers for Ohio! Hip hip, hooray! Ohio has just flown past 1,000 Utica Shale permits issued. The number, as of last Saturday, is 1,006 to be exact. Of that number 617 wells either are or have been drilled (two-thirds!). Perhaps most fitting is that Aubrey McClendon’s new company, American Energy Utica, received it’s first five permits to drill in this latest batch issued by the Ohio Dept. of Natural Resources (ODNR). McClendon was the first to recognize the potential of the Utica Shale and moved his then-company, Chesapeake Energy, into purchasing 1 million acres of leases in the Ohio Utica.

What is truly mind-blowing is that it took only three years for Ohio to go from zero permits to 1,000+ permits for Utica wells, establishing the Utica as one of the country’s hottest shale plays. Here’s a rundown on the latest numbers from Ohio’s Utica Shale:
Read More “Ohio Passes 1,000 Utica Shale Permits Issued, No End in Sight”
Energy Services | Industrywide Issues | Marathon Petroleum | Ohio | Pipelines | Statewide OH | Utica Shale

Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline
December 5, 2013December 5, 2013

Another new pipeline is on the way in the Utica Shale. This one will be built by Marathon Petroleum Corporation, the largest refiner in the Utica Shale region. The Cornerstone pipeline, as they’re calling it, will stretch nearly 50 miles from the MarkWest cryogenic processing plant in Cadiz, OH northwest connecting to M3’s fractionator plant in Scio and M3’s cryogenic processing plant in Leesville along the way as it terminates and connects to Marathon’s refinery in Canton, OH (see map below). The pipeline will carry, at various times, crude oil, condensate and natural gasoline.

The Cornerstone pipeline is slated to be built and in operation in 2016, according to Marathon officials. Here’s what Garry Peiffer, President of Marathon’s Master Limited Partnership MPLX GP said about the Cornerstone project on an analyst call yesterday:
Read More “Marathon Petroleum’s Newly Announced “Cornerstone” Utica Pipeline”
Ohio | Statewide OH | Utica Shale

OH Utica Shale Status Report – Red Hot & Growing
December 3, 2013December 2, 2013

The Utica Shale is being developed faster than other shale plays–it is perhaps the fastest ramp-up in the short history of U.S. shale plays: 0 to almost 1,000 shale wells permitted (609 of them drilled) in the last 3 years. Some of the lessons being learned in the Utica are being carried to other, more “mature” plays like the Marcellus and the Bakken. So what’s going on in the red hot Utica?

A status report on the Utica Shale, courtesy the Youngstown Business Journal and the recent DUG East conference in Pittsburgh…
Read More “OH Utica Shale Status Report – Red Hot & Growing”
Industrywide Issues | Jobs | Ohio | Statewide OH | Utica Shale

The Real Employment Numbers in Ohio’s Utica Shale
December 3, 2013December 2, 2013

There’s a lot of trash talking about how many jobs shale drilling “actually” creates–by those desperate to stop drilling. In classic disinformation style they throw out wildly inflated numbers, say those of us on the pro-drilling side made those claims, and then knock down the “straw man” they created when employment numbers don’t measure up. “See! The drilling industry lied to you about how many jobs they would create.” That’s the tact they use to try and discredit this jobs-creating industry.

The truth is, shale drilling has created thousands of new, direct jobs in the oil and gas industry–in Pennsylvania, West Virginia and Ohio. It’s also created thousands more jobs in related industries, like environmental consulting, trucking, etc. So let’s, for a change, talk about real numbers, shall we? The Ohio Dept. of Job and Family Services, official tallying agency for employment numbers in Ohio, says Ohio’s natural gas and shale employment numbers have gone up 30% over the past two years…
Read More “The Real Employment Numbers in Ohio’s Utica Shale”
Carroll County | Economic Impact | Harrison County | Industrywide Issues | Ohio | Statewide OH | Utica Shale

Meet Ohio’s New Utica Millionaires – Hundreds of Them
December 2, 2013December 2, 2013

As part of a story about the Morgan County (OH) Landowner Group, or MCLG (see our companion story today), near the end of the story we get this short mention which, although an “off-hand” comment, comes as a startling thunderclap to MDN about the sheer number of millionaires created by the Utica Shale (i.e. “shaleonaires”):
Read More “Meet Ohio’s New Utica Millionaires – Hundreds of Them”
Energy Companies | Landowner Coalition News | Morgan County | Ohio | PDC Energy | Utica Shale

Morgan County, OH Looks to Join the Utica Shale Well Club
December 2, 2013December 2, 2013

So far Morgan County, OH (south of Muskingum County, west of Noble County) has been quiet with respect to Utica Shale drilling. We’ve heard nothing. However, in November, Petroleum Development Corporation (PDC) obtained three Utica Shale permits in Center Township, Morgan County. Depending on the results of those three wells, more may be on the way.

In addition to the first three Utica wells to be drilled in Morgan by PDC, another surprise (to MDN): There’s a landowner group in Morgan County we were not aware of–the Morgan County Landowner Group (MCLG)–which incorporated as a non-profit in 2012 and already has 60,000+ acres…
Read More “Morgan County, OH Looks to Join the Utica Shale Well Club”