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Marcellus Drilling News
  • Belmont County | Energy Companies | Greene County (PA) | Ohio | Pennsylvania | Rice Energy | Washington County

    Rice Energy CEO Dan Rice Says 5 Utica Wells Producing 80Mmcf/Day

    March 13, 2015March 13, 2015

    CORRECTION: In the original version of this story MDN incorrectly stated Rice’s 5 Utica wells were producing $80 million per day instead of 80 million cubic feet of natural gas. A dumb mistake. We relied on an inaccurate transcription of what was said (see it below). The transcription lists the quantities as dollars–the person transcribing got it wrong. We should have known! Our apologies. The 5 wells are still awesome in producing 80 Mmcf/d–but not as awesome as $80 million per day! 🙂

    In addition to releasing their fourth quarter and full year 2014 update yesterday, Rice Energy also held an analyst phone call to share the results. Rice’s top management was on the call and shared some fascinating insights. Among them: In 2014 and early 2015 Rice brought five Utica Shale wells online–Bigfoot 9H, Blue Thunder 10H and 12H, and Gold Digger 1H and 3H. (Just an aside, we love how Rice names their wells. Their newest well pad just completed in Belmont County, OH is the “Son-Uva-Digger” pad. Love it!) Anywho, the five Utica wells completed in 2014 and early 2015 collectively are producing, according to CEO Dan Rice, 80 million cubic feet of gas PER DAY. Truly astonishing. In addition to the Utica in Belmont County, Rice is eyeing the Utica underneath their Marcellus assets in southwestern PA–in Washington and Greene counties. This company is smart and focused and one to keep an eye on. Below is a transcript of the comments from yesterday’s analyst call. We’ve added our yellow highlighter to point out some items that caught our attention…
    Read More “Rice Energy CEO Dan Rice Says 5 Utica Wells Producing 80Mmcf/Day”

  • Energy Companies | Gastar Exploration

    Gastar’s Marcellus/Utica Production Goes DOWN in 2014 – Why?

    March 13, 2015March 13, 2015

    Gastar Exploration is an independent oil and gas driller with active drilling programs in the Hunton Limestone horizontal play, the Woodford Shale and the Meramec Shale–all three of which occupy roughly the same acreage in the Mid-Continent area. Of interest to MDN is Gastar’s program in West Virginia and Pennsylvania, where they drill in both the Marcellus and now the Utica Shale layers. At last check-in Gastar owns 58,900 acres of leases in the northeast. As we reported in February, Gastar plans to spend a minimal amount drilling in the northeast in 2015–essentially just completing a few wells already drilled (see Gastar Finishing 5 Wells, Then Idling Rigs in Marcellus/Utica). In their 2014 year-in-review, Gastar reports year over year production in the Marcellus/Utica went down–a story we don’t often see. Usually production goes up. Why down for Gastar? They drilled and brought fewer wells online in the Marcellus/Utica in 2014 than in previous years. Here’s the Appalachin Basin section from Gastar’s 2014 update…
    Read More “Gastar’s Marcellus/Utica Production Goes DOWN in 2014 – Why?”

  • Broome County | Hydraulic Fracturing | Industrywide Issues | New York | Statewide NY

    Radio Program to Discuss the Junk Science Behind NY’s Frack Ban

    March 13, 2015March 13, 2015

    A shout-out to those who live in the Greater Binghamton area–and even those beyond our area–to listen in this Sunday evening from 7-8 pm to radio station WNBF AM-1290 in Binghamton to another edition of Table Talk with the Joint Landowners Coalition of New York (JLCNY). This week’s guest is Dr. Gilbert Ross, Medical Director of the American Council on Science and Health. Dr. Ross will discuss high volume hydraulic fracturing and the illegal and unscientific ban which stole away the mineral rights of upstate New York landowners. If you’re not in the Binghamton area, you can tune in live online at //wnbf.com (click the big orange LISTEN LIVE button). More on this weekend’s program…
    Read More “Radio Program to Discuss the Junk Science Behind NY’s Frack Ban”

  • Industrywide Issues | Ohio | Statewide OH | Taxation

    More on OH Gov Kasich’s Threat to O&G Industry re Severance Tax

    March 13, 2015March 13, 2015

    Two days ago we told you about OH Gov. John Kasich’s threat against the oil and gas industry in Ohio: You accept my high 6.5% severance tax or else (see OH Gov Kasich the Bully: Accept My 6.5% Tax or Risk a 10%+ Tax). His comments were made last Friday. We spotted another article about that session with reporters which contains a bit more of the context of Kasich’s threatening language…
    Read More “More on OH Gov Kasich’s Threat to O&G Industry re Severance Tax”

  • Energy Companies | Energy Services | EQT Corp | Equitrans/EQT Midstream

    EQT Midstream Swims Against the Tide, Issues Units Instead of Notes

    March 13, 2015March 13, 2015

    As we’ve commented a number of times, we don’t pretend to understand all of this high finance stuff when it comes to oil and gas companies and how they decide to fund future development. Sometimes they sell shares of stock. Sometimes they sell “units”–which are the equivalent of shares of stock for companies organized as a master limited partnership (or MLP). Sometimes they borrow money in a revolving loan (line of credit). And sometimes they float notes, what we tongue-in-cheek call IOUs. Lately there have been a rash of companies, many of them midstream (pipelines and processing plants) floating notes to get more cash through the door. We spotted one that’s different (different always stands out). EQT Midstream, a subsidiary of driller EQT but a company (on paper) that’s independent, just announced they’re issuing 8.25 million new units (i.e. like shares of stock), with an option of issuing an additional 1.2 million units. Issuing units (or shares of stock) is equity financing–selling ownership in the company, whereas notes and lines of credit is debt financing. Which is better? Ask a CFO. We have a built-in bias to avoid debt, but that’s just us…
    Read More “EQT Midstream Swims Against the Tide, Issues Units Instead of Notes”

  • Energy Companies | Energy Services | Industrywide Issues | Litigation | Minuteman Environmental Services | Pennsylvania | Regulation | Statewide PA | XTO

    PA Grand Jury Finds Anti-Drilling AG Kathleen Kane Lied Under Oath

    March 13, 2015March 13, 2015

    Kathleen Kane, the anti-drilling Attorney General of Pennsylvania–lied under oath–according to a PA grand jury. That’s called perjury and it’s a crime. She should be removed from office immediately but she’s fighting the charge using Lanny Davis–the same lawyer who kept Bill Clinton in office after he lied under oath. She’s hoping lightening will strike twice and Davis will be able to restore her damaged-beyond-repair credibility as the state’s top law enforcement officer, even though she herself has committed high crimes against the state. Why do we care? Because she’s lied in at least two other cases that affect the Marcellus Shale industry: XTO Energy (see PA AG Abuses Her Authority, Files Criminal Charges Against XTO) and Minuteman Environmental Services (see Minuteman Sues AG Kane’s Office for $20M + Punitive Damages). She’s vicious and relentless when it comes to smearing the Marcellus industry and she needs to go because of her own crimes…
    Read More “PA Grand Jury Finds Anti-Drilling AG Kathleen Kane Lied Under Oath”

  • Industrywide Issues | Supply Chain

    Manufacturer Targets Marcellus with Gas-Powered “Micro” Turbines

    March 13, 2015March 13, 2015

    FlexEnergy manufactures small (micro) turbine electric generators used by oil and gas producers to power equipment on well pads (among other uses). FlexEnergy’s claim to fame is that it manufactures “the world’s only synchronous generator-based micro-turbines”–whatever that is! Apparently it’s good. FlexEnergy, based in New Hampshire, recently announced they’ve partnered with Waukesha-Pearce Industries (WPI), headquartered in Houston, TX as its distributor for FlexEnergy’s turbine technology. Initially the partnership will cover the Marcellus Shale gas region…
    Read More “Manufacturer Targets Marcellus with Gas-Powered “Micro” Turbines”

  • Best of the Rest

    Marcellus & Utica Shale Story Links: Fri, Mar 13, 2015

    March 13, 2015March 13, 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: Fri, Mar 13, 2015”

  • Chevron | Crime | Energy Companies | Greene County (PA) | Industrywide Issues | Pennsylvania

    2 Men Indicted by Feds for Vandalizing Chevron Wells in SWPA

    March 12, 2015March 12, 2015

    handcuffsA Green County man–Heath A. Rankin, 33, of Carmichaels, PA–was indicted earlier this week by a federal grand jury on a felony charge of damaging a shale well (or wells) on the Burchianti Pad in Greene County in March 2014. The pad is owned by Chevron, which is, according to one news source, planning to seek restitution for damages exceeding $5,000 allegedly caused by Mr. Rankin. Another man, Brian Harbarger, 34, of Cumberland, PA–was indicted for the same thing in December 2014. It’s too early to jump to any conclusions. Are they environmentalists that tipped over the line? Are they former/disgruntled employees? Drunk and out for a joy ride? We simply don’t know. Here’s what we do know…
    Read More “2 Men Indicted by Feds for Vandalizing Chevron Wells in SWPA”

  • Chesapeake Energy | Energy Companies | Energy Services | GASFRAC | Hydraulic Fracturing | Industrywide Issues | Ohio | Tuscarawas County | Utica Shale

    Chesapeake Tries Waterless Fracking at OH Utica Shale Well

    March 12, 2015March 12, 2015

    Big NewsSomething we consider pretty big news: Chesapeake Energy is running an experiment with waterless fracking. They’ve contracted with Canadian waterless fracking company GASFRAC to attempt what is the second (that we’re aware of) waterless frack job on a Utica Shale well–in Tuscarawas County, OH. The first waterless frack job done by GASFRAC was for EV Energy Partners on a Utica well also in Tuscarawas County (see Details on GASFRAC’s Waterless Frack Test in OH Utica). We consider it a good sign that Chessy thinks its worth a few million bucks to try it out for themselves. Chessy stresses this is still very preliminary…
    Read More “Chesapeake Tries Waterless Fracking at OH Utica Shale Well”

  • Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

    PA Gov Wolf: Forget Burning Natgas, Make PVC Pipe Instead

    March 12, 2015March 12, 2015

    A question and answer session with PA Gov. Tom Wolf at the Harrisburg Patriot-News reveals a lot about his attitude and thinking with regard to the Marcellus Shale industry. Hinting at his previous statement that if the industry doesn’t agree to his tax he’ll ban them (see PA Gov Wolf Turns Bully, Threatens Ban on Drilling Absent New Tax), Wolf, in answering a question about the drilling industry and how it conducts itself said the industry will “do this [Marcellus drilling] right or we can’t do it at all.” He failed to define what he means by doing it right. Wolf also said that while he’s in favor of extracting Marcellus Shale gas, he (fantastically) thinks it’s a waste to burn it! Instead, HE wants to use it to make things, like artificial wood for decks and PVC for pipes. He’s more interested in solar and wind than he is natural gas (must be John Hanger’s influence). What a mess this man’s thinking is on one of PA’s most important natural resources. He’s going to screw it up if he continues on this dangerously naive course…
    Read More “PA Gov Wolf: Forget Burning Natgas, Make PVC Pipe Instead”

  • Industrywide Issues | Pennsylvania | Statewide PA | Taxation

    PIOGA Leads the Charge to Defeat Wolf’s Severance Tax

    March 12, 2015March 12, 2015

    Louis D. D’Amico, President & Executive Director of the Pennsylvania Independent Oil & Gas Association (PIOGA), is leading the effort to defeat PA Gov. Tom Wolf’s Marcellus-killing, 7.5% severance tax. While virtually everyone else looked away in embarrassment and otherwise ignored Wolf’s threat that you either take this tax like a man or you’ll get banned “like New York,” Lou D’Amico is not looking away and not pretending Wolf never said it. Wolf did say it and he meant it–and he must be stopped. Below is an excellent column Lou recently wrote in which he parses the governor’s comments and offers the industry’s response–setting the record straight. By the way, Lou will be the Guest of Honor at this year’s Oil & Gas Awards event in Pittsburgh on March 25…
    Read More “PIOGA Leads the Charge to Defeat Wolf’s Severance Tax”

  • Industrywide Issues | Pennsylvania | Regulation | Statewide PA | Taxation

    PA DEP Sec Quigley Fumbles Questions at House Budget Hearing

    March 12, 2015March 12, 2015

    Yesterday PennFutureDEP Acting Sec. John Quigley appeared before the PA House budget hearing to answer questions about Gov. Tom Wolf’s budget proposals for the Dept. of Environmental Protection (i.e. cheerlead and support the highest tax increase on drillers in the state’s history). Quigley was asked why he had fired the members of the DEP’s Oil & Gas Technical Advisory Board (OGTAB)–something no incoming governor has done in a generation, Republican or Democrat (see Why did PA DEP Acting Sec Quigley Mass Fired Gas Advisory Board?). Quigley apparently fumbled around with the question and answered it later, after the meeting, saying the law required splitting the board in two and, “We needed some new blood on the advisory board.” He was asked, during the hearing, who the new members would be on the newly constituted OGTAB. Quigley said he “couldn’t remember” and he later told reporters the board is appointed by the governor and that he “doesn’t do clerical work.” Apparently nominating and appointing a board with people who ultimately guide and control the very policies his department must enforce isn’t important enough for Quigley to bother with. Arrogant or out of touch, take your pick. Later that same day, after some underling got chewed out for Quigley’s poor performance, a press release was issued with the names of the OGTAB members…
    Read More “PA DEP Sec Quigley Fumbles Questions at House Budget Hearing”

  • Industrywide Issues | Pennsylvania | Pipelines | Regulation | Statewide PA

    PA DEP Sec Quigley Wants Pipeliners/Towns to Meet Up

    March 12, 2015March 12, 2015

    kumbayaPA’s PennFutureDEP Acting Sec. John Quigley wants to get the big pipeline companies and the townships through which the pipelines will go to meet at the local Starbucks and “start a conversation.” Which latte do you like? Er no, not that kind of conversation. Quigley acknowledges he doesn’t have a thing to do with interstate pipelines–they’re approved by the Federal Energy Regulatory Commission (FERC). Other agencies (federal and state) oversee the pipelines once they are built. But Quigley thinks if he can get both sides–pipeliners and towns–together and try to at least get a dialogue going, perhaps something good will come from it. Not a bad idea as ideas go. One recommendation: don’t tell the nutters which Starbucks you’re meeting at…
    Read More “PA DEP Sec Quigley Wants Pipeliners/Towns to Meet Up”

  • CNG/LNG | Electrical Generation | Energy Services | Industrywide Issues | Kinder Morgan | Pipelines | Spectra Energy | Tennessee Gas Pipeline

    Does New England Really Need a New Natgas Pipeline?

    March 12, 2015March 12, 2015

    Don’t look now, but we actually read a pretty fair and balanced report on pipelines to New England…published by PBS! We predict a reporter who will soon be out of a job. The article (which we quote from below) frames up the arguments against and for new natural gas pipelines coming to New England this way: Those against say electric generation that requires natgas really only demands an extra supply in the dead of winter–typically 30-45 days. Because of that heightened demand, it drives electric prices through the roof because the plants have to buy the gas on the spot market. The rest of the year that kind of intense demand is not there–meaning you’ll spend billions on pipelines to solve a 30-45 day problem. And the rest of the year? Some of that gas will go to Canada and likely get exported. Better to use the existing LNG terminal in Boston and import (!) liquefied natural gas, instead of using cheap, abundant Marcellus gas from a few hundred miles away, and use more LNG at electric generation plants. Those who favor building the pipelines see it differently…
    Read More “Does New England Really Need a New Natgas Pipeline?”

  • Energy Services | Industrywide Issues | Millennium Pipeline | New York | Pipelines | Statewide NY

    NY’s Millennium Pipeline Launches Open Season to Expand

    March 12, 2015March 12, 2015

    The Millennium Pipeline–a natural gas pipeline running through upstate New York’s Southern Tier area from Corning, NY to Rockland County, NY–announced a new open season yesterday. The open season will sign up new customers from now until the end of the month, March 31. The Millennium, which is jointly owned by NiSource, National Grid and DTE Energy, plans to expand facilities along the line, increasing capacity. That usually means they will install some new loops, or additional pipelines right next to the existing pipeline, along with upgrades to compressor plants. The purpose? Deliver more clean-burning natural gas to customers throughout the northeast…
    Read More “NY’s Millennium Pipeline Launches Open Season to Expand”

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