Utica Shale

Energy Companies | Halcon Resources | Mahoning County | Ohio | Statewide OH | Trumbull County | Utica Shale

Halcón Resources: Will Drill Up to 500 Wells in the Utica
August 2, 2013August 2, 2013

Halcón Resources Corporation, increasingly an important driller in the Utica Shale, released their second quarter update yesterday. Halcón CEO Floyd Wilson also held a conference call for analysts. On that call, Wilson boasted about Halcón’s Utica Shale program–in particular the Kibler 1H well in Trumbull County which has been producing 2,233 barrels of oil equivalent per day–75% of it liquids. Halcón, which concentrates its drilling in “oily” plays like the Bakken and Utica, is currently operating 2 drilling rigs in Ohio/Pennsylvania. They’ve drilled nine Utica wells and are now evaluating the results. Halcón has 142,000 acres leased in the Utica Shale (primarily in Ohio).

Remarks about Halcón’s Utica program from the conference call, and the Utica portion of yesterday’s 2Q13 report:
Read More “Halcón Resources: Will Drill Up to 500 Wells in the Utica”
Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake’s Lawler Excited about OH Utica, Calls it “Outstanding”
August 2, 2013August 2, 2013

Chesapeake Energy’s new CEO, Doug Lawler, like Chessy’s founder and first CEO Aubrey McClendon, positively gushes when it comes to the Utica Shale. On a conference call with analysts yesterday, Lawler said, “The Utica is outstanding,” and he sees the Utica as “…a very strong asset going forward.”

More details on Chessy’s Utica Shale drilling program in Ohio from Lawler:
Read More “Chesapeake’s Lawler Excited about OH Utica, Calls it “Outstanding””
Ohio | Statewide OH | Utica Shale

Latest OH Utica Numbers: 819 Permits, 460 Wells Drilled
August 1, 2013August 1, 2013

The latest numbers of permits and wells drilled in the Ohio Utica Shale, courtesy the Akron Beacon Journal:
Read More “Latest OH Utica Numbers: 819 Permits, 460 Wells Drilled”
Hydraulic Fracturing | Industrywide Issues | Muskingum County | Ohio | Regulation | Utica Shale

Not So Fast: Blue Rock State Forest Fracking on Hold
August 1, 2013August 1, 2013

A few days ago MDN told you that the federal Bureau of Land Management (BLM) had plans to auction off shale drilling rights for Blue Rock State Forest in eastern Ohio (see Surprise! Blue Rock State Forest in Eastern OH to be Fracked). As we pointed out, most federal land auctioned for drilling is located in the western U.S.–this is the first such instance of BLM land being auctioned in the Marcellus/Utica region that we are aware of. The federal government owns the mineral rights in Blue Rock, and the state of Ohio owns the surface rights.

Ohio state officials complained they were not consulted by the BLM about the mineral rights auction or the possibility that the forest will be fracked. So the BLM has (for now) halted their planned auction for later this year…
Read More “Not So Fast: Blue Rock State Forest Fracking on Hold”
Belmont County | Energy Companies | Harrison County | Hess | Ohio | Statewide OH | Utica Shale

Hess Drills 10 Wells in OH Utica Shale in 2Q13
August 1, 2013August 1, 2013

As part of their 2Q13 update, Hess reports the following details about their Utica Shale drilling program in Ohio for the past three month period:
Read More “Hess Drills 10 Wells in OH Utica Shale in 2Q13”
Hydraulic Fracturing | Industrywide Issues | Muskingum County | Ohio | Regulation | Utica Shale

Surprise! Blue Rock State Forest in Eastern OH to be Fracked
July 30, 2013July 30, 2013

MDN has kept readers informed about new federal fracking rules proposed by the Dept. of Interior’s Bureau of Land Management (BLM), rules that will make it quite expensive to drill (see New BLM Fracking Rule will Cost Drillers Nearly $100K per Well). We haven’t been overly concerned about the new BLM fracking regulations in the Marcellus/Utica because, as we told you, the rules will only affect fracking on federal land–almost all of which is located in the western U.S. Until now, our concern with the BLM rules has been that the federal government may, at some point, force the BLM rules on the states (see Feds ‘Hope’ States will Use BLM Rules for ALL Fracking).

However, it now appears the new BLM rules may apply in the Utica Shale much sooner than we thought. The Blue Rock State Forest, a 4,578-acre forest in Muskingum County where the state of Ohio owns the surface but the federal government owns the mineral rights, will soon be opened up by the feds for fracking. This revelation will no doubt set off the berserker alarms at anti-drilling HQ…
Read More “Surprise! Blue Rock State Forest in Eastern OH to be Fracked”
Access Midstream Partners | Columbiana County | Energy Companies | Energy Services | EV Energy Partners | Industrywide Issues | M3 Midstream | NGLs | Ohio | Processing Plants | Statewide OH | Utica Shale

M3’s Kensington, OH NGL Plant Now Live & Processing
July 30, 2013July 30, 2013

A new $400 million natural gas liquids (NGL) processing plant in Kensington (near Hanoverton, OH) has went online Sunday. The Utica East Ohio Midstream (UEO) plant, a joint venture owned by M3 Midstream, Access Midstream (formerly Chesapeake Energy) and EV Energy Partners, was originally supposed to be online in May. That date slipped. In June, MDN picked up on a bit of news that indicated the plant would go live “by the end of July” (see M3 Midstream’s Kensington, OH NGL Plant Launch Date Slips). The July rumored date proved correct.

Yesterday, M3 issued the following press release announcing that the UEO plant is now operating and processing NGLs. It is the first plant of its kind to go online in the Utica Shale:
Read More “M3’s Kensington, OH NGL Plant Now Live & Processing”
Crosstex Energy | Energy Services | Muskingum County | Ohio | Utica Shale

Re-opened Frazeysburg, OH Rail Terminal Ships Utica Condensate
July 30, 2013July 30, 2013

In June, MDN told you about a newly re-opened railroad terminal now being used to ship Utica Shale condensate from Frazeysburg in Muskingum County, OH (see Crosstex Ships Utica Condensate with OH Rail Loading Terminal). Crosstex, the company operating the terminal, held a ribbon-cutting ceremony a few weeks ago at the Black Run rail terminal and issued this update (and picture):
Read More “Re-opened Frazeysburg, OH Rail Terminal Ships Utica Condensate”
Lease & Royalty Payments | Muskingum County | Ohio | Utica Shale

Risky Business – OH Landowner Group Wants to Lease Sans Lawyer
July 26, 2013July 26, 2013

A Utica Shale landowner group in Muskingum County, OH with 90,000 acres available for lease has embarked on a risky venture. They want to strike a deal on behalf of their members to lease property for $5,000 per acre and 20% royalties. Certainly no problem with that–sounds like a fair deal in a “wet gas” area like Muskingum County, OH. The group is asking the Muskingum County Commissioners to not shop county land below that asking price (something that happened in neighboring Coshocton County) as that would undercut their bargaining power. We also have no problem with that–sounds like a smart strategy.

However, the landowner group wants to cut a deal with a driller without the help of attorneys. Attorneys typically take a small per-acre fee in return for their legal guidance on very complicated oil and gas drilling contract law. You can be sure the driller drawing up a lease agreement has an army of attorneys working on it–so why would you willingly disadvantage yourself by not using one too? It comes down to money…
Read More “Risky Business – OH Landowner Group Wants to Lease Sans Lawyer”
Energy Companies | Hilcorp Energy | Mahoning County | Ohio | Utica Shale

Hilcorp Sets Sights on More Utica Drilling in Mahoning County, OH
July 26, 2013July 26, 2013

A quick update on Hilcorp’s Utica Shale drilling program and where they’ll next, courtesy the Youngstown Business Journal:
Read More “Hilcorp Sets Sights on More Utica Drilling in Mahoning County, OH”
Ohio | Statewide OH | Utica Shale

OH Passes 800 Utica Shale Permits, 117 Wells Now Producing
July 25, 2013July 25, 2013

Ohio has passed the 800-mark for Utica Shale permits. As of last week, 812 Utica Shale permits have been issued. Of that number, 390 wells have been completed and 117 are now in production. The number of drilling rigs operating in Ohio continues to go up and now stands at 36.

Here’s the Ohio Dept. of Natural Resources report showing where Utica Shale permits were issued last week (by town and county), and to which drillers:
Read More “OH Passes 800 Utica Shale Permits, 117 Wells Now Producing”
Belmont County | Energy Companies | Gulfport Energy | Ohio | Statewide OH | Utica Shale

Gulfport 2Q13: Oil Production Down, NatGas & NGLs Way Up
July 24, 2013

Gulfport Energy issued its second quarter 2013 operations update yesterday. Among the highlights: The company produced less oil than a year ago after selling off its Permian wells and acreage to Diamondback, but they saw a dramatic increase in production of natural gas and natural gas liquids from a year ago. Gulfport’s natgas production was up 6.5X and liquids production more than doubled–up 2.3X from last year. The company also said they increased their Utica Shale acreage by an additional 8,000 acres–they now own 145,000 leased Utica acres.

Also in the update are production numbers for a series of new wells recently brought online–the McCort wells in Belmont County (Somerset Township), OH. The full 2Q13 Gulfport update:
Read More “Gulfport 2Q13: Oil Production Down, NatGas & NGLs Way Up”
Energy Companies | Halcon Resources | Ohio | Trumbull County | Utica Shale

Halcon Resources Plans $70M Oil Terminal in Lordstown, OH
July 22, 2013July 22, 2013

Last November, MDN told you about a new landowner group in Lordstown, OH that had formed to negotiate with Halcon Resources who had recently purchased 20-50 year-old leases in the area, hoping to drill Utica wells on those properties (see Halcon Resources Responds to Lordstown, OH Landowners Group). The landowners, of course, want to renegotiate the leases to allow Utica drilling with updated safeguards and protections–horizontal drilling was not envisioned when the original leases were signed all those years ago. Halcon is willing to grant them an increase in royalty payments, but essentially told the landowners to sign the revised lease they were circulating or risk not getting a dime. The tone was very much take it or leave it.

MDN has no word on the status of those talks, but we do notice two things: Halcon has, since last November, applied for and received four Utica Shale drilling permits in Trumbull County; and, Halcon is planning to build a $70 million oil storage and rail-loading terminal in Lordstown…
Read More “Halcon Resources Plans $70M Oil Terminal in Lordstown, OH”
Antero Resources | Energy Companies | Guernsey County | Noble County | Ohio | Utica Shale

MWCD to Sell 138M Gallons of Seneca Lake Water for Utica Drilling
July 22, 2013July 22, 2013

Last February, the Muskingum Watershed Conservancy District (MWCD) signed a lease with Antero Resources to lease 6,700 acres under and around Seneca Lake. The MWCD got a $40.3 million signing bonus, plus 20% royalties (see Muskingum Watershed District Signs with Antero for $40.3M Bonus). Last week, the MWCD voted to sell up to 138 million gallons of water from Seneca Lake to Antero so they can use it in their drilling and fracking operations, making another potential $828,000.

We’ll lease you the land and sell you the water to drill it too. Cool…
Read More “MWCD to Sell 138M Gallons of Seneca Lake Water for Utica Drilling”
Economic Impact | Industrywide Issues | Jobs | Ohio | Statewide OH | Utica Shale | Washington County (OH)

OH Students Get High-Paying Jobs in OH Utica Shale Industry
July 17, 2013July 17, 2013

A group of Ohio schoolteachers went on a field trip recently, touring drilling sites in eastern Ohio–Washington County, to be specific. A reporter tagged along to get their impressions and produced an interesting article. As part of that article, the reporter spoke to several educators about job opportunities in the Ohio oil (and gas) field patch. We’ve brought you such stories before, but it bears repeating that (in this case) Ohio students graduating from Marietta College’s petroleum engineering and geology department are actively, aggressively recruited and many get jobs right out of college with starting salaries of over $100,000 per year!

In addition, there’s plenty of high-paying jobs for those without a degree who have skills–like welding, truck driving and diesel mechanic. You can see how the Ohio Utica Shale is radically improving the jobs situation in Ohio:
Read More “OH Students Get High-Paying Jobs in OH Utica Shale Industry”
Antero Resources | Energy Companies | Energy Services | Industrywide Issues | Noble County | Ohio | Pipelines | Rockies Express Pipeline | Utica Shale

REX Reverses Pipeline Flow from OH for Mystery Utica Customer
July 16, 2013July 16, 2013

What a difference a year makes. Last August, RBN Energy President Rusty Braziel said the Rockies Express Pipeline (REX), which originates in Rio Blanco County, Colorado and sends gas to Monroe County, Ohio, was in danger of drying up because there’s so much shale gas coming from the Marcellus. His prescription? Turn it around and send gas the other way (see REX NatGas Pipeline Faces Stiff Competition from Marcellus). Looks like REX has taken Rusty’s advice.

In a press release issued yesterday, REX announced they have a binding agreement with an unnamed “large Utica Shale producer” who wants to use the pipeline to ship 200,000 decatherms of processed natural gas per day to the Midcontinent region of the country. That is, REX is reversing the flow for at least part of the pipeline. And who might the unnamed “mystery” producer be? We think we know…
Read More “REX Reverses Pipeline Flow from OH for Mystery Utica Customer”