Utica Shale

Belmont County | Industrywide Issues | Ohio | Seismic Testing | Utica Shale

Belmont County, OH Seismic Charges: Trespass or Honest Mistake?
September 3, 2013September 3, 2013

Sandy Putorek, who lives in Pittsburgh but owns a 30-acre farm in Lansing (Belmont County), OH, is anti-drilling. It is her American right to refuse what she claims are many offers to lease her property for Utica Shale drilling. It is also her right (so long as she owns the mineral rights) to refuse seismic testing on her property. However, while recently visiting her land she noticed tracks across her property. When she followed them, she had a surprise: someone had installed small explosive charges used for seismic testing–without her permission. Now Sandy is (understandably) fighting mad.

The company that installed the charges is removing them, claiming bad maps from the county led to the charges being mistakenly placed on Sandy’s land…
Read More “Belmont County, OH Seismic Charges: Trespass or Honest Mistake?”
Antero Resources | Energy Companies | Lease & Royalty Payments | Monroe County | Utica Shale | West Virginia

WVU Prof Says Antero Well will Generate $300K Revenue…Per Day!
August 30, 2013August 30, 2013

The Yontz 1H well may not produce at these unheard-of levels for an extended period, but heck, if a gas well is bringing in $300,000 per day in revenue, it doesn’t have to last long! That’s the staggering amount of revenue that a West Virginia University professor predicts will be produced by the monster well recently drilled by Antero Resources in Monroe County, WV (see Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d). At the rate the gas and gas liquids are flowing from the well right now, it will bring in over $2 million per week in revenue for Antero. If royalties are 20% for the landowner, that’s $400,000 per week for the Yontz family!

With those kinds of numbers, no wonder Antero is willing to “roll the dice” and spend a half billion dollars to build a new water pipeline (see Antero Resources Rolls Dice on 1/2 Billion Dollar Marcellus Pipe)…
Read More “WVU Prof Says Antero Well will Generate $300K Revenue…Per Day!”
Antero Resources | Energy Companies | Monroe County | Ohio | Utica Shale

Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d
August 29, 2013

Somehow the following news (now a few weeks old) slipped by our usually-good radar. Antero Resources has taken the top spot away from Gulfport Energy as having the most productive Utica Shale well in Ohio. Gulfport had what was dubbed their “alpha dog” well, the Wagner 1-H well producing 14 million cubic feet of natural gas per day (Mmcf/d). Then came Gulfport’s Shugert 1-1H, which MDN dubbed the “King of Utica Shale wells” producing a whopping 20 Mmcf/d. After that was the Shugert 1-12H well, sister well to the 1-1H. We called that one “the Emperor well” producing 28.5 Mmcf/d (see Gulfport’s New Utica Well Produces Mind-blowing 28.5 Mmcf/d!).

We’re now officially out of metaphors and labels. Antero Resources’ Yontz Utica Shale well recently saw a peak rate of a truly mind-blowing 38.9 Mmcf/d. Gulfport’s Shugert wells are in Belmont County. The Yontz well is located in Monroe County, just south of Belmont…
Read More “Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d”
BP | Energy Companies | Hydraulic Fracturing | Industrywide Issues | Ohio | Pipelines | Trumbull County | Utica Shale

Utica Drilling Innovation: Plastic Pipelines Replace Water Trucks
August 29, 2013August 29, 2013

An interesting innovation that we have not heard of before: BP is using temporary, plastic pipelines to transport water to the test wells they’re drilling in Trumbull County, OH. When a series of wells are finished being drilled, the pipes can be rolled up and used somewhere else without having to dig a trench and leave a permanent pipeline underground. No more thousands of trips by water trucks to drill a well!

Could this be the start of yet another new, environmentally-friendly innovation by the shale drilling industry?…
Read More “Utica Drilling Innovation: Plastic Pipelines Replace Water Trucks”
Anadarko | Blue Ridge Mtn Res/Magnum Hunter | Chesapeake Energy | CONSOL Energy | Energy Companies | EV Energy Partners | Gulfport Energy | Halcon Resources | Hess | Ohio | PDC Energy | Rex Energy | Statewide OH | Utica Shale

Who’s Who in OH Utica Shale Drilling for 2013
August 27, 2013August 27, 2013

Investor’s website Market Realist ran a 7-part series on the Utica Shale yesterday–really good stuff. As part of that series they list the biggest drillers/leaseholders in the Ohio Utica Shale. It’s a very useful rundown and update on the latest positions held by the major players of the Utica. We’ve pulled and condensed from their article to give you the latest rundown on who’s who in the Ohio Utica Shale…
Read More “Who’s Who in OH Utica Shale Drilling for 2013”
Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Ohio | Pipelines | Processing Plants | Statewide OH | Utica Shale

Blue Racer Gets $1B Line of Credit for More Utica Projects
August 23, 2013August 23, 2013

Blue Racer Midstream, a 50/50 midstream joint venture between Dominion and Caiman Energy II, was formed last December (see Dominion, Caiman in $1.5B Utica JV: Blue Racer Midstream). One of the assets that belongs to the Blue Racer jv is the newly online Natrium, WV NGL plant (see Dominion Sells $500M Natrium NGL Plant to… Itself).

In order to expand and fulfill their vision of becoming the leading midstream company in the Utica Shale, Blue Racer needs money to build things. They now have it. Blue Racer announced yesterday they’ve secured an $800 million line of credit with a group of banks–a line of credit which can be (under certain conditions) expanded to a whopping $1 billion. That kind of money will easily build you another couple of Natrium NGL plants…
Read More “Blue Racer Gets $1B Line of Credit for More Utica Projects”
Carroll County | Energy Companies | Lease & Royalty Payments | Ohio | Sierra Buckeye | Utica Shale

Carroll County, OH Says Sierra Buckeye in Default on Utica Lease
August 22, 2013August 28, 2013

In May 2012 Houston-based driller Sierra Buckeye signed a deal with the Muskingum Watershed Conservancy District (in Ohio) to lease 185 acres of District-controlled land for $4,500 per acre plus 20% royalties on all gas produced–really good terms. In October 2012 Sierra Buckeye signed a deal with Carroll County, OH to lease 481 acres of county-owned land for the same terms, receiving a check for over $2 million as the signing bonus. However, built into the Carroll County lease deal are penalties if Sierra Buckeye does not begin drilling by certain deadlines.

The initial deadline came and went and the county extended it. The second deadline is now past and Sierra Buckeye is asking for a third deadline (November). The county has had enough and has told Sierra Buckeye the lease contract is now in default…
Read More “Carroll County, OH Says Sierra Buckeye in Default on Utica Lease”
Economic Impact | Industrywide Issues | Jobs | Ohio | Statewide OH | Utica Shale

OH Utica Shale – More Jobs to Come, Sale Tax Revenue Soars
August 22, 2013August 22, 2013

Although the “received wisdom” is that the Utica Shale has not, so far, created a bonanza of jobs for in-state residents, it’s early days yet and most energy industry analysts and watchers predict jobs for Ohioans in much greater numbers are on the way. In the meantime, the Utica’s positive impact on local economies is not in dispute. The latest evidence: the 15 counties in eastern OH with the best Utica Shale deposits (and the most drilling) have seen their sale tax revenues soar by an average 20% in 2012 vs 2011. That is a huge number and indicates a lot of money from drilling stays in OH and ripples throughout local economies…
Read More “OH Utica Shale – More Jobs to Come, Sale Tax Revenue Soars”
Aveda Transportation | Energy Services | Upshur County | Utica Shale | West Virginia

Aveda Transportation Opening WV Branch Office to Move Utica Rigs
August 15, 2013August 15, 2013

Aveda Transportation and Energy Services Inc., a Canadian oilfield hauling services and equipment rental company, released their second quarter financials yesterday. Aveda currently operates a branch office in Williamsport, PA to service Marcellus drillers.

An interesting little announcement was tucked in yesterday’s release. Aveda is opening another branch office in the northeast–this one in West Virginia–to service the rapidly growing number of rigs in the Utica Shale. According to CEO Kevin Roycraft, he’s counting on the new WV office to contribute to the company’s bottom line by fourth quarter of this year…
Read More “Aveda Transportation Opening WV Branch Office to Move Utica Rigs”
Carroll County | Chesapeake Energy | Columbiana County | Energy Companies | Harrison County | Ohio | Statewide OH | Utica Shale

Chesapeake’s Current Thinking on their Utica Shale Program
August 12, 2013August 12, 2013

At a meeting in Mahoning County, OH, a Chesapeake Energy representative tackled the question of how long Ohio residents will see drilling in their midst. The rep then spoke about the next phase after drilling–production and piping product to market. The answers given were not anything we haven’t heard before. Still, some of the Chesapeake rep’s comments did give us insight into the company’s current thinking about the Utica Shale and the counties where they intend to concentrate their efforts…
Read More “Chesapeake’s Current Thinking on their Utica Shale Program”
Economic Impact | Industrywide Issues | Lease & Royalty Payments | Ohio | Statewide OH | Utica Shale

Muskingum Watershed District: $77M in Utica Lease Revenue, So Far
August 12, 2013August 12, 2013

There’s no doubt a change has happened at the board of the Muskingum Watershed Conservancy District (MWCD). Last year they self-imposed a moratorium on selling water to Ohio Utica Shale drillers (Muskingum Watershed Reverses Decision to Sell Water to Drillers). This year, they can’t wait to lease MWCD land to Utica Shale drillers and sell them the water to frack it (MWCD to Sell 138M Gallons of Seneca Lake Water for Utica Drilling). Why the change?

An MWCD official talked about the change in thinking for the MWCD board at a meeting last week of the Guernsey (County) Energy Coalition…
Read More “Muskingum Watershed District: $77M in Utica Lease Revenue, So Far”
Energy Companies | EnerVest | EV Energy Partners | Guernsey County | Harrison County | Lease & Royalty Payments | Noble County | Ohio | Utica Shale

EVEP/EnerVest Cuts Deal to Sell 22.5K OH Utica Acres for $284M
August 9, 2013August 9, 2013

In September last year, EV Energy Partners/EnerVest put more than a half million acres of Ohio Utica Shale acreage on the market. Near the end of last year, a deal for 104,000 of those acres seemed to be almost done, but in April of this year, the deal fell apart (see EV Energy Partners Deal to Sell 104K Utica Acres Dead, What Now?). EVEP then changed gears and said instead of putting big blocks up for sale, they’ll look at selling off smaller chunks (see EV Energy: Changing from Big Deals to Small for Utica Land Sale). Looks like the change in strategy worked.

Today, EVEP announced they’ve made a new deal to sell 22,535 acres in Guernsey, Harrison and Noble counties in Ohio for $284.3 million to an unnamed buyer. According to EVEP, the deal works out to be a very high $12,900 per acre. We ran the math and came up with $12,616 per acre. Either way, EVEP is getting a LOT of money for unloading Utica Shale acreage they don’t want. This deal is scheduled to close in the third quarter–the next few months. Let’s see if this one actually happens.

The announcement from EVEP/EnerVest (with a map of the acreage sold):
Read More “EVEP/EnerVest Cuts Deal to Sell 22.5K OH Utica Acres for $284M”
Dominion Energy | Energy Companies | Energy Services | Gulfport Energy | Harrison County | Industrywide Issues | Ohio | Pipelines | Statewide OH | Utica Shale

Gulfport Signs Pipeline Deal to Sell Utica Gas to Midwest Market
August 8, 2013August 8, 2013

Straight off a conference call yesterday comes the news that Gulfport Energy has just signed a 10-year contract with Dominion Transmission to transport the natural gas Gulfport produces in the Ohio Utica Shale to the Midwest–using Dominion’s pipelines. The agreement is to ship 100 million cubic feet per day of gas (100 Mmcf/d), ramping up to 150 Mmcf/d by late 2014. Gulfport’s CEO James Palm made the announcement yesterday.

Palm also said on the conference call that Gulfport continues to lease acreage in Ohio and plans to drill “at least” 70 new wells next year in the Utica. More from yesterday’s call:
Read More “Gulfport Signs Pipeline Deal to Sell Utica Gas to Midwest Market”
Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport Energy 2Q13: “All in” for the Utica Shale
August 7, 2013August 7, 2013

Gulfport Energy is definitely “all in” when it comes to drilling in the Utica Shale. The Oklahoma City-based company released its second quarter update yesterday, an update that shows that of the nine active rigs Gulfport is operating across three different shale plays, seven of those rigs are operating in the Ohio Utica Shale. Need we say more?

The operational update section of yesterday’s Gulfport update, outlining some of the outstanding results they’re getting in the Utica:
Read More “Gulfport Energy 2Q13: “All in” for the Utica Shale”
Carroll County | Chesapeake Energy | Columbiana County | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake’s Latest Thinking about the OH Utica Shale
August 5, 2013August 5, 2013

More analysis of last Thursday’s investor/analyst phone call with Chesapeake Energy officials. Specifically, this article looks at the comments made by new CEO Doug Lawler and long-time COO Steve Dixon comments about the Ohio Utica Shale:
Read More “Chesapeake’s Latest Thinking about the OH Utica Shale”
BP | CNX Resources | Energy Companies | Halcon Resources | Ohio | Trumbull County | Utica Shale

List of 20 Existing/Planned Utica Wells in Trumbull County, OH
August 5, 2013August 5, 2013

Embedded in an article about the delay in natural gas and gas liquids flowing from the Utica Shale region due to lack of infrastructure, we found this handy list of 20 planned or existing Utica Shale wells for Trumbull County, OH, including where the well is located and the driller’s name:
Read More “List of 20 Existing/Planned Utica Wells in Trumbull County, OH”