Utica Shale

Arrowhead Utica Pipelines | Columbiana County | Energy Companies | Energy Services | Hilcorp Energy | Industrywide Issues | Ohio | Trucking | Utica Shale

Utica Shale Transfer Facility Gets Road Upgrade
September 30, 2013September 30, 2013

In February, MDN brought you the news that the Columbiana County Port Authority would spend nearly $1 million to improve a stretch of road leading to the Wellsville industrial park where Arrowhead Utica Pipelines, a Hilcorp subsidiary, is building a shale gas transfer facility (see Hilcorp Subsidiary Leases Property for Utica Transfer Facility). Looks like it won’t take anywhere near that much money to get the project done.

Last Friday the Port Authority voted to accept a bid and move forward to have the work done–at a cost of $526,000…
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Crude Oil | Economic Impact | Industrywide Issues | Jobs | NGLs | Ohio | Statewide OH | Utica Shale

U.S. Chamber’s Chris Guith Talks About Ohio Utica Shale
September 30, 2013September 30, 2013

Chris Guith is vice president for policy at the U.S. Chamber of Commerce’s Institute for 21st Century Energy. He’s also very familiar with the development of Ohio’s Utica Shale play. In a recent interview, Guith had some interesting comments on Ohio’s prospects for oil, NGL pipelines, industry jobs, regulations and more…
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Ashtabula County | Ohio | Utica Shale

Utica Shale Gas-to-Liquids Plant Planned for Ashtabula, OH
September 24, 2013September 23, 2013

Converting Marcellus and Utica Shale natural gas into liquids like solvents, lubricants and waxes–even diesel fuel–is starting to catch on. MDN previously told you about a “gas-to-liquids” (GTL) plant planned for the Altoona, PA area that will convert natural gas to diesel fuel (see Altoona Area Getting $200M Marcellus Gas-to-Liquids Plant). A chemical manufacturer in western PA is pursuing a GTL plant to create their own “feedstock”–raw chemical materials they need to produce other specialty chemicals (see Chemical Manufacturer to Build Gas-to-Liquids Plant in PA).

Now, word of the first GTL plant we’ve heard of planned in Ohio. The Ohio plant, if built, will also produce specialty chemicals…
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Athens County | Ohio | Utica Shale

Will Utica Shale Drilling Come to Athens County, OH Soon?
September 20, 2013

From time to time Athens County, OH pops up on the radar screen–mostly related to a misguided attempt by a few anti-drillers to ban fracking (see last month’s article Athens Election Board Votes Against Anti-Frack Ballot Measure).

However, there has been no Utica drilling in Athens County so far. Is that about to change? The Athens News says drilling is inching steadily closer. They take a close look at the prospects (and evidence) that drilling may come to this southeastern Ohio county–soon…
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Carroll County | Economic Impact | Hydraulic Fracturing | Industrywide Issues | Ohio | Roads | Utica Shale

Carroll County, OH Transformed by Utica Shale Drilling
September 18, 2013September 18, 2013

What’s it like when drilling comes to town? Who better to tell us than someone from “the epicenter” of drilling in eastern Ohio? Amy Rutledge is director of the Carroll County Chamber of Commerce. She spoke this week at an energy summit in Columbus sponsored by America’s Natural Gas Alliance.

Startling fact #1: According to Rutledge, Carroll County has fewer than 30,000 people living it–but when drilling came to town, 200 property owners in Carroll became instant millionaires from the bonus checks they received. Startling fact #2: Drillers have (so far) paid over $40 million to rebuild Carroll County’s roadways–that’s 80 years worth of road work completed in two years for a county with an annual budget of just $500,000 allocated for roads…
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Energy Companies | Gulfport Energy | Harrison County | Ohio | Utica Shale

Newest Gulfport Utica Wells Disappoint with Methane Production
September 17, 2013September 17, 2013

Last week Gulfport Energy prepared the markets (i.e. investors) to receive some “bad news”–lower-than-expected third quarter production numbers for their Utica Shale wells, partially due to lack of a pipeline hookup to a single well (see Delayed Pipeline to Single Gulfport Utica Well Impacts Market). Today Gulfport released production numbers for three Utica wells. To our eye, it seems lack of infrastructure is not the only reason Gulfport lowered expectations for 3Q13 production. The newest wells coming online for Gulfport are not producing anywhere near the amount of methane their previously announced monster wells produce. For example, the Stutzman well in Belmont County well produced an initial 21 million cubic feet of natural gas per day (see Mind-blowing Earnings from a Single Utica Shale Well). That’s to be expected. Not every well you drill is a home run.

Even though Gulfport’s newest wells are under-performers vis a vis methane (2.0-9.7 million cubic feet per day), they produce more than enough condensate and natural gas liquids to make up for it. Interestingly, all three of Gulfport’s newest wells are in Harrison County, OH…
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Industrywide Issues | Ohio | Regulation | Statewide OH | Utica Shale

Ohio Moves to Quarterly Production Reports Starting Jan 2014
September 16, 2013September 16, 2013

Investors and those who watch the Utica Shale industry, including MDN, have long called on the Ohio Dept. of Natural Resources (ODNR) to abandon annual reporting of gas and oil production and instead move to a more frequent reporting system–quarterly would be about right. Late last year MDN prematurely told you quarterly reporting was on the way (see [Corrected] ODNR Moving to Quarterly Production Numbers for O&G). The state legislature took up the measure again earlier this year and made quarterly reporting part of the language in the 2013 Ohio budget bill (see Ohio Moves One Step Closer to Quarterly O&G Production Reports). The budget passed with quarterly reporting language intact.

Last Thursday, director of the ODNR, James Zehringer, along with the chief of the division of oil and gas operations for the ODNR, Rick Simmers, spoke at the Guernsey County Energy Coalition meeting. Simmers said starting in January 2014, Ohio drillers will be required to file quarterly production reports…
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Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

Benesch Law’s Useful Quarterly Report/Overview on Utica Shale
September 16, 2013September 16, 2013

How about a handy quarterly snapshot of the Utica Shale and where various initiatives (like infrastructure investments) stand? The attorneys and researchers at Benesch Law produce just such a report every three months. The latest edition is now out. One statistic of note to give you a feel for the enormous scope and potential of the Utica Shale in Ohio: There are 133 pipeline projects–from local gathering lines to interstate natural gas liquids pipelines–either now being built or on the drawing board. It represents billions of dollars of investment in the Utica.

Below is the full Benesch Shale Industry Report – Quarterly Summary Q2 2013. Well worth the few minutes it takes to read…
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CONSOL Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

OOGA Pegs Utica Shale “Sweet Spot” at YOUNG 2013
September 13, 2013

An Ohio Oil and Gas Association (OOGA) representative told attendees at the YOUNG 2013 conference held this week in Youngstown that counties in southeastern Ohio are the “sweet spot” of the Utica Shale play because the pressure there is higher and because the shale layer includes an abundance of natural gas liquids. However, another speaker–an executive from CONSOL Energy–said counties in northeastern Ohio will continue to see successful drilling too. So don’t despair!

Executive VP of OOGA, Tom Stewart, used a map to detail the location of a “strip of highly pressurized shale containing natural gas liquids.” While we don’t have a copy of the map, we do have his identification of precisely which counties he says are in that strip–the Utica Shale sweet spot…
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Belmont County | Energy Companies | Gulfport Energy | Ohio | Utica Shale

Delayed Pipeline to Single Gulfport Utica Well Impacts Market
September 11, 2013September 11, 2013

Can delays in building a pipeline to a single Utica Shale well be enough to affect the stock price of the driller? You bet it can. Analysts from Sterne Agee issued revised estimates of how much production Gulfport Energy will see in the third quarter of this year based on Gulfport’s pre-announcement to the markets yesterday that they’ve had to lower their own estimates of production in 3Q13–because of a delay in hooking up the Irons 1-4H Utica Shale well in Belmont County, OH.

To be fair, Gulfport’s stock price only slipped a little bit on yesterday’s news (down less than 1/2 of one percent), and Sterne Agee remains bullish on the stock. Still, it’s incredible to us that the scheduling of a pipeline hookup for a single well can create such an impact on a multi-billion dollar energy company…
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Ohio | Statewide OH | Summit County | Utica Shale

Ohio Utica Shale Blog Takes Top Honor in Statewide Contest
September 11, 2013September 11, 2013

A huge congratulations are in order for Bob Downing (whom we have met and like a great deal) and Jim Mackinnon (whom we’ve not met but are sure we would like) for winning the contest as the No. 1 newsblog in Ohio for 2012 for their Ohio Utica Shale blog (published by the Akron Beacon Journal). MDN editor Jim Willis reads a lot–every day–and one of his favorite “must read” websites (that we often quote from) is the Ohio Utica Shale blog/Akron Beacon Journal.

The award is well-deserved and we can’t think of a better pair who deserve the recognition from their peers in the Society of Professional Journalists, the organization making the award. So, “Way to go, guys!”…
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Energy Companies | Rhino Resource Partners | Utica Shale

Rhino Resources Issues 1.1M Common Units to Repay Debt
September 10, 2013September 10, 2013

Rhino Resource Partners is a master limited partnership (MLP) that produces coal in various basins throughout the U.S. They also invest in oil and gas acreage in both the Utica and Cana Woodford shale plays. In April MDN told you that Rhino had decided to “flip” 20% of their Utica royalty interests to an undisclosed third party for $10.5 million (see Rhino Flips 20% of Utica Investment to Undisclosed 3rd Party).

Yesterday Rhino issued another brief press statement–this one stating they are issuing a public offering of 1.1 million shares of common units (rough equivalent of stock). They’re issuing the new units in order to pay off loans they previously borrowed under their revolving line of credit. No word on how much money they hope to raise…
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Chesapeake Energy | Columbiana County | Energy Companies | Lease & Royalty Payments | Ohio | Utica Shale

Is Chesapeake Robbing Graves in OH Village…or Getting Robbed?
September 6, 2013September 6, 2013

We can see the headlines now: Chesapeake Energy is a (Gas) Grave Robber! Wait until the anti-drillers get hold of this story… Chesapeake has struck a deal with the Village of Salineville (Columbiana County), OH to lease and drill under 17 acres at the Woodland Cemetery. The deal stipulates no surface disturbance of any kind (a very good idea).

But who is robbing whom? Listen to the deal the village got: Chesapeake is paying Salineville $44,145 annually for five years, plus 15% royalties. The annual payments add up to $220,725, or if you think of it as a signing bonus stretched over 5 years, it’s $12,984 per acre. Wow!! That’s perhaps the highest per acre signing bonus we’ve heard of in the entire Marcellus or Utica Shale. Kudos to the Salineville board members who ~~suckered~~ negotiated the deal with Chesapeake…
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Ohio | Statewide OH | Utica Shale

OH’s Utica Shale Drillers Go South
September 4, 2013September 4, 2013

Ace reporter Bob Downing from the Akron Beacon Journal does a great job in an article published yesterday with reviewing the most recent permit (and drilling) trends in Ohio. What did he find? Most drillers are moving their permits and their drilling rigs to the southern part of the state. Carroll County remains the current champ for Utica Shale drilling with 319 wells permitted (38% of all Utica Shale wells in Ohio). However, at some point in the not-too-distant-future that will change…
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Belmont County | Energy Companies | Energy Services | Harrison County | Hess | Industrywide Issues | Jefferson County (OH) | Ohio | Pipelines | PVR Midstream | PVR Partners | Utica Shale

PVR Partners to Build $150M Utica Shale Pipeline System for Hess
September 3, 2013September 3, 2013

Midstream company PVR Partners has been selected by Hess to construct 45 miles of gathering pipelines in eastern Ohio’s Utica Shale region. In an announcement issued today, PVR said the new pipelines will be built to cover Belmont, Jefferson and Harrison Counties where Hess holds a substantial acreage position. The new pipeline project will end up costing somewhere in the neighborhood of $125-$150 million and will be completed in 2015.

The PVR announcement:
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American Energy Partners | Energy Companies | Ohio | Statewide OH | Utica Shale

More Evidence that Aubrey McClendon Loves OH’s Utica Shale
September 3, 2013September 3, 2013

Aubrey McClendon is former CEO of Chesapeake Energy and now CEO of an upstart competitor he started named American Energy Partners (see AEP’s just launched website here). Aubrey is high on the Ohio Utica Shale. He’s rumored to be close to signing a deal with Shell for 50,000 OH Utica Shale acres, and is also rumored to be the unnamed buyer for EnerVest’s 22,535 OH Utica Shale acres sold just a few weeks ago (see He’s Baaaack! Aubrey McClendon is Back in OH Shale Country).

More evidence that Aubrey is focusing on Ohio: A bunch of advertisements AEP is running in OH media seeking to sign leases in the following counties…
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