Marcellus Drilling News

Anadarko | Anti-Drilling/Fossil Fuel | Energy Companies | Industrywide Issues | Lycoming County | Pennsylvania | Regulation | Southwestern Energy

Antis Ask PA Gov Wolf to Stop New Drilling in Loyalsock Forest
July 16, 2015July 16, 2015

Representatives from a dozen far-left anti-fossil fuel groups sent a letter to Pennsylvania Gov. Tom Wolf on Tuesday asking him to illegally prevent drilling in the Loyalsock State Forest–where the mineral rights are owned by private individuals and not the state. Groups like PennFuture (most of whose employees now work in the Wolf Administration), the Sierra Clubbers and the League of [Liberal Democrat] Women Voters are signatories to the letter urging Wolf to wave his magic wand and prevent drilling in the Loyalsock. Of course their pleas and demands ignore the fact that drilling is already happening in many state forests–INCLUDING Loyalsock. Their objection is to the addition of more drilling in the Clarence Moore Lands area of the Loyalsock…
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Energy Companies | Penn Virginia Corporation

Penn Virginia Sells E TX Assets for $75M – Avoiding Soros?
July 16, 2015July 16, 2015

Although headquartered in Radnor, Pennsylvania (near Philadelphia), Penn Virginia Corporation is an oil and gas driller with only a small presence in the Marcellus Shale: 21,700 net acres with no drilled wells. They concentrate on oil drilling the Texas Eagle Ford Shale play. MDN told you in March that Penn Virginia’s top stockholder, the vile corporate raider George Soros, forced them to put themselves up for sale so George can line his pockets with more cash (see George Soros Finally Bullies Penn Virginia into Selling Itself). The company got an offer from BP, but rejected it as too low, just last month (see BP Makes Offer to Buy Penn Virginia, Other Majors Interested Too). Another major investor, Lone Star Value Management, told Penn Virginia to take BP’s money, but so far they haven’t (see Major Investor Tells Penn Virginia to Take BP’s Money and Run). Amidst all of this turmoil Penn Virginia announced yesterday they’ve sold some of their East Texas “assets”–acreage and operating wells–to an “undisclosed buyer” for $75 million…
Read More “Penn Virginia Sells E TX Assets for $75M – Avoiding Soros?”
Alpha Natural Resources | Energy Companies

Rumor Mill: Alpha Natural Res. to File for Bankruptcy Next Month
July 16, 2015July 16, 2015

Just a few weeks ago MDN brought you the news that coal company Alpha Natural Resources is expanding their Marcellus Shale operation and would begin drilling within the next 30 days in the Marcellus Shale in Greene County, PA (see Alpha Natural Res. Expands in Marcellus, Drilling Begins in 30d). Was that bluster? Yesterday the Wall Street Journal reported that Alpha is in talks to get financing for filing for bankruptcy next month…
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Blue Racer Midstream | Energy Services

Blue Racer Midstream Looks to Raise Another $300M from IOUs
July 16, 2015July 16, 2015

Last November Blue Racer Midstream–the pipeline and processing plant company formed in 2012 as a joint venture between Caiman Energy II and Dominion and focused totally on the Marcellus and Utica Shale region–floated IOUs (called senior notes) due and payable in 2022 for $550 million. Must be nice to write out an IOU and get big bucks. Blue Racer is back for more. The company announced yesterday they’re floating another round of IOUs due payable in 2022 in an effort to raise another $300 million…
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Industrywide Issues | Ohio | Research | Statewide OH

OH Releases Another 3,300 Geophysical Wells Logs
July 16, 2015July 16, 2015

Pssst. Hey buddy. Wanna buy a well log? The Ohio Dept. of Natural Resources (ODNR) has just published another 3,300 newly scanned geophysical logs for oil and gas wells in the Buckeye State. That brings the total number of well logs available for purchase up to ~130,000. What is a well log? Well logging, also known as borehole logging, is the practice of making a detailed record (a well log) of the geologic formations penetrated by a borehole. Essentially it’s data or information about a well. Drillers make physical measurements made by instruments lowered into the hole (called geophysical logs). Geophysical well logs can be done during any phase of a well’s history: drilling, completing, producing, or abandoning. Ohio offers up their geophysical well log data for $5 per log (on CD-ROM). Here’s the ODNR announcement…
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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Jul 16, 2015
July 16, 2015July 16, 2015

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
Read More “Marcellus & Utica Shale Story Links: Thu, Jul 16, 2015”
Industrywide Issues | Research | Reserves (Proved and Unproved) | Utica Shale

WVU Research Shock Finding: Utica is as Big as Marcellus!
July 15, 2015July 15, 2015

Data from a two-year geological study conducted by the Appalachian Oil and Natural Gas Research Consortium, a group of state and federal officials along with university researchers representing West Virginia, Ohio, Pennsylvania, Kentucky and New York, was presented yesterday in Canonsburg, PA. The study, titled “A Geologic Play Book for Utica Shale Appalachian Basin Exploration” (full copy below), finds the Utica Shale play has 20 times more recoverable natural gas than thought just three years ago–an astonishing 782 trillion cubic feet of natural gas in the Utica. Here’s the shocker news coming from the release of this new study: The size and potential recoverable resources in the Utica are “comparable” to the Marcellus play, the largest shale oil and gas play in the U.S. and the second largest in the world. You read that right. The Utica is potentially as big as the Marcellus! The Utica is located pretty much underneath the Marcellus. The depths vary, but the Marcellus is around a mile down and the Utica around two miles down. Researchers at the top-notch West Virginia University took the lead in publishing the report. Here’s how they’re reporting it…
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CONSOL Energy | Energy Companies | Industrywide Issues | Jobs

CONSOL Slashes 10% of Workforce – 470 Jobs Gone
July 15, 2015July 15, 2015

We have an update on the sad news we first reported yesterday–that CONSOL Energy has made another round of layoffs (see CONSOL Energy Swings the Ax Again – New Round of Layoffs). We now have numbers to share. CONSOL is laying off approximately 10% of its entire workforce–290 jobs (i.e. people) gone in its gas and corporate operations, and 180 jobs (i.e. people) gone in its Pennsylvania coal mines. That’s 470 families facing a major economic crisis with the loss of a job. What does Wall Street do? They pop the cork and celebrate–more cash in their pockets–driving CONSOL’s stock price higher. These cuts come just three months after CONSOL previously laid off 170 people in April (see CONSOL Energy Lays Off Workers in CNX Gas Division in WV/PA). That’s a grand total of 640 people gone in the past three months. CONSOL’s comment? “These are very difficult but prudent decisions given the depressed nature of commodity prices”…
Read More “CONSOL Slashes 10% of Workforce – 470 Jobs Gone”
Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Magnum Hunter’s #1 Stockholder Continues to Divest
July 15, 2015July 15, 2015

Last month MDN told you about one of Magnum Hunter Resources’ (MHR) major investors dumping 6.3 million shares of MHR stock (see Magnum Hunter Investor Dumps 6.3 Million Shares of MHR Stock). We have new information and a much better understanding about that investor–Relational Investors. Relational is the hedge fund for a “kinder, gentler” corporate raider by the name of Ralph Witworth. In June Witworth and Relational owned 27.5 million shares of MHR stock. Today? 17.7 million shares–a 36% reduction in the past month. According to reports, Relational is not done yet. Relational is on the way to divesting ALL of their MHR stock holdings. But that’s not as ominous as it sounds. The reason Relational is divesting all MHR stock is because they are divesting all of their holdings in all stocks. Witworth has health issues (throat cancer) and Relational is divesting so it can relaunch under new management and, presumably, re-buy stocks in many of the positions they previously held. Will that include a re-purchase of MHR stock? Who knows. One thing is for sure, as we noted in our previous story in June, Relational is taking a bath by selling MHR at these super low prices. Another observation: with this much MHR stock coming on the market, prices for the stock will likely remain low for the foreseeable future…
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Energy Companies | Warren Resources

Help Wanted: Warren Resources Launches Search for New CEO
July 15, 2015July 15, 2015

Warren Resources is a small, independent exploration and production company headquartered in New York City. Warren has ongoing drilling programs in California, Wyoming, and in the Pennsylvania Marcellus Shale. Warren’s Marcellus program is very small–they previously announced they would drill and complete two Marcellus wells in 2015 (see New Entrant in the Marcellus: Warren Resources Drilling 2 Wells in 2015). However, Warren has faced some serious challenges. Last December Warren’s CEO and Chairman of the Board, Philip Epstein, suddenly quit (see CEO of Warren Resources Quits, Replaced by Citrus Energy CEO). Since Epstein’s departure, Citrus Energy CEO Lance Peterson (a Warren board member) has taken the reigns as interim CEO. Now that the company has successfully “navigated the critical liquidity and debt issues,” they’re ready to find a new, permanent CEO. The search has begun…
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Exporting | Industrywide Issues | Regulation | Research

Manhattan Institute Says Now is Time to Ramp Up Shale Production
July 15, 2015July 15, 2015

The New York-based Manhattan Institute, a non-profit think tank with a mission “to develop and disseminate new ideas that foster greater economic choice and individual responsibility” has just released a new report titled, “Step on the Gas! How to Extend America’s Energy Advantage” (full copy embedded below). The 20-page report says now is the time for the U.S. to press its advantage in shale energy. The report’s writer, senior fellow at the Manhattan Institute, Oren Cass, points out the cyclical nature of commodity prices for oil and gas and says even though prices are down now–they won’t stay that way. In order to take full advantage of the shale boom, Cass suggests 11 reforms to help craft a smarter U.S. energy policy–one that will amplify the current boom and extend it far into the future. At the top of the hit parade: allow domestic producers to export oil and gas, and streamline the process to let it happen more quickly…
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Hydraulic Fracturing | Industrywide Issues | Research

Governors Assoc. Issues Recommendations on Water Usage in Fracking
July 15, 2015July 15, 2015

The National Governors Association (NGA) issued a 16-page report last Thursday encouraging governors and their states to adopt policies that encourage a) the use of less drinking water for fracking, and b) the use of more recycling of flowback water in fracking. The report, titled “State Practices to Protect Drinking Water While Developing Shale Energy” (full copy below), is the result of a a 35-member panel that met in March. The panel included gubernatorial advisers, state and federal regulators, professors, environmentalists and representatives of the oil and gas industry. We’ve had a look over the recommendations and frankly, there’s really nothing new in them that isn’t already either being done or in the process of being done. In addition to the study, MDN includes below some perspective on just how much drinking water gets used for fracking versus water used for other purposes…
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Meetings | Pennsylvania | Statewide PA | Statewide WV | West Virginia

Ben Franklin SGICC Technology Showcase Deadline is Friday, July 17
July 15, 2015July 15, 2015

Listen up supply chain companies with cool/new technologies aimed at the shale oil and gas marketplace. Is your technology ready for a field test? Looking for companies to invest to get get your big idea to market? We have an opportunity for you. The Ben Franklin Shale Gas Innovation & Commercialization Center, the same great folks who bring you the annual Shale Innovation Contest (see Winners of $100K for 2015 Shale Gas Innovation Contest Announced), are sponsoring a Technology Showcase once again at this fall’s Shale Insight 2015 Conference. Up to 10 companies will get a chance to make an 8-minute pitch followed by a 2-minute Q&A with the audience. The Technology Showcase has been the successful launching pad for a number of products that are now a commercial success. Below are the details on how to enter. But hurry! You must have your application submitted by this Friday, July 17…
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Ashtabula County | Energy Services | Industrywide Issues | Ohio | Processing Plants | Regulation | Velocys

Ohio EPA Issues Final Permit for Ashtabula GTL Plant
July 15, 2015July 15, 2015

In March the Ohio Environmental Protection Agency issued a draft permit to Ashtabula Energy that will allow the company to build a gas-to-liquids (GTL) plant converting Utica Shale gas into other products like diesel fuel (see OH EPA Issues Draft Lake Erie Discharge Permit for Ashtabula GTL Plant). The permit will allow the plant to discharge wastewater into Lake Erie (essentially freshwater used for cooling in the plant). After holding two public meetings and further consideration, the Ohio EPA has issued a final permit to Ashtabula–a sign that the project will now move forward. Just one teeny tiny problem that we can see. Ashtabula was bought out by Velocys GTL, the manufacturer of the equipment that will be used in the plant. Just over a week ago Velocys suspended its CEO for “possible serious misconduct” (see Velocys GTL Company Suspends CEO for Possible Serious Misconduct). So what does that mean for the future of the Ashtabula GTL project?…
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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Jul 15, 2015
July 15, 2015July 15, 2015

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:
Read More “Marcellus & Utica Shale Story Links: Wed, Jul 15, 2015”
Energy Companies | Energy Services | Industrywide Issues | M&A | Marathon Oil | Marathon Petroleum | MarkWest Energy | Pipelines | Processing Plants

Midstream Bombshell: MarkWest Sells Itself to Marathon Petroleum
July 14, 2015July 14, 2015

While all eyes have been on the possible hostile takeover of midstream giant Williams by another midstream giant, Energy Transfer Equity (see Williams Continues to Resist ET Offer, Talks with Other Suitors), another midstream (i.e. pipeline company) merger was quietly being arranged that has rocked the midstream world. Yesterday MarkWest Energy, with major operations in the Marcellus/Utica–MDN would call it the premier midstream company in the northeast–announced it is selling itself to Marathon Petroleum Corp.’s midstream division MPLX, a master limited partnership or MLP. The “merger” (i.e. sale of MarkWest to Marathon) will create the fourth largest MLP in the United States–worth $21 billion in market capitalization. MarkWest is twice the size of MPLX, which makes this an interesting story and truly big news for the Marcellus/Utica…
Read More “Midstream Bombshell: MarkWest Sells Itself to Marathon Petroleum”