Signs of Life in Canadian Goldboro LNG Export Project
We’ve kept an eye on several LNG export projects along the Eastern shore of Canada (most of them in Nova Scotia) for some time. Why? Because they’re a huge potential market for Marcellus and Utica Shale gas. One of those projects, in Nova Scotia, is the Goldboro LNG project from Pieridae Energy. The most recent news we had was when the U.S. Dept. of Energy approved the plant for exporting to non-free trade agreement counties, back in February (see Goldboro LNG Project Gets Final DOE Approval – Good for Marcellus). That is, until today. Honeywell has announced it was selected to provide the Goldboro project with automation and safety systems and serve as the integrated main automation contractor. That is, we see signs of life in this project!…
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Getting a pre-packaged bankruptcy to go is about as fast as getting a Happy Meal at the McDonald’s drive-thru. Relatively speaking, of course. Bankruptcies usually take many months, often years, before a company emerges to fight another day. Not so with the pre-packaged variety. Seventy Seven Energy (SSE), the former Chesapeake Oilfield Operating company, filed a bankruptcy plan just two months ago (see
The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading. In today’s lineup: New York policies result in high natgas prices; natgas volatility continues in WV; US natgas production down in May, consumption up; Chesapeake looks to sell more assets; natgas storage feels the burn; China boosts LNG imports; and more!
In May MDN highlighted news that Penn State University had set up a seismic monitoring system throughout Pennsylvania to track earthquakes in the Keystone State (see
Cabot Oil & Gas, one of our favorite large independent drillers in the Marcellus, issued their second quarter 2016 update last Friday. There was plenty of good news, but we’ll start with the bad news first. Cabot lost $63 million during 2Q16 versus losing $27.5 million in 2Q15. Compared to some oil and gas companies with losses in the billions per quarter, Cabot’s loss is inconsequential. We’d call it treading water, financially. The good news is that they are planning to drill and complete more wells than originally planned for 2016. That is, the market is picking up again. Cabot announced they recently added back a second completions crew in Susquehanna County, PA, the only county where they drill in PA. They still operate just a single rig, but that rig is accomplishing a lot for the company. At the beginning of 2016 Cabot planned to drill 25 Marcellus wells (see
Last week Halcon Resources, a Utica Shale driller that “guessed wrong” by leasing 140,000 Utica Shale acres in the northern part of the play (in Ohio) and currently doesn’t drill on any of that acreage, filed for bankruptcy (see 
As you have no doubt noticed, we are in the midst of quarterly reports season. Public companies (those with stocks) must file quarterly financial reports with the Securities and Exchange Commission. Along with those filings comes a version of the same news constructed for consumption by investors and the general public. The overall “feel” of reports coming from most Marcellus/Utica drillers has been upbeat. The obvious trend is that the big drillers–EQT, Cabot, Southwestern, others–plan to drill more wells in 2Q16 than originally forecast. However, given the recent severe downturn, most drillers are sounding notes of caution as a balance to the good news that more drilling is on the way. Perhaps “cautiously optimistic” is the best way to put it…
Fairmount Santrol, an Ohio-based sand producer that sells sand as a proppant for use in Utica and Marcellus Shale drilling, recently released their preliminary second quarter 2016 results sounding a note of guarded optimism (see 
MDN sent an email to our list of daily headline subscribers last week (below). This is a quick reminder that
Events related to drilling in the Marcellus and Utica Shale, primarily pro-drilling.