Marcellus Drilling News

Industrywide Issues | M&A | Supply Chain

Big Congrats: ShaleNavigator Sells to Geospatial
September 19, 2014September 19, 2014

A hearty congratulation to MDN friend (and Databook partner) Ed Camp from ShaleNavigator. Ed has just reached an agreement to sell his company, ShaleNavigator, to Geospatial Corporation. Ed will then go to work at Geospatial and continue to run ShaleNavigator as a division of Geospatial. You may recognize the name ShaleNavigator because it is the software used to create the maps in MDN’s Marcellus and Utica Shale Databook. Have no fear, Ed will continue to generate those lovely maps that are the heart and soul of the Databook (speaking of which, Volume 2 of the 2014 series is due out in the next few weeks, stay tuned). Here’s the announcement that it’s time to pop the cork on the bubbly for a an all-around great guy, Ed Camp, and the marriage of his ShaleNavigator with Geospatial…
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Anti-Drilling/Fossil Fuel | Electrical Generation | Industrywide Issues | Pennsylvania | Statewide PA

Dela. Riverkeeper Opposes New Electric Line Because of…Fracking?
September 19, 2014September 19, 2014

So screwed up are the fossil fuel haters that they’ve taken to opposing a proposed new regional electric power line that would run from Pennsylvania to points in New Jersey, New York and Maryland because (follow this twisted logic)–it runs through Marcellus Shale regions and the new power line will be an incentive for power plants to locate in that region to tap into cheap, abundant and clean-burning natural gas to generate electricity at a cheaper cost than can be generated in other places. And even though fracking has been proven not to contaminate water (see Federal NETL Study: Fracking Doesn’t Contaminate Water Supplies), apparently the word hasn’t yet reached THE Delaware River Keeper herself (Maya van Rossum) because she says the power line will be an incentive for more fracking and fracking is evil ’cause fossil fuels are evil and la la la la don’t tell me otherwise I’m-not-listening…
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Energy Companies | Gastar Exploration

MDN’s Prediction of Gastar Stock Offering Scary Accurate
September 19, 2014September 19, 2014

We don’t toot our own horn too often (at least, we hope not), but we want to point out how MDN keeps readers on the cutting edge. Yesterday we brought you the news that Gastar Exploration is a) shifting their drilling focus to a play outside the Marcellus/Utica in 2015, and b) is issuing more common stock, hoping to raise more money for drilling (see Gastar 2015 Budget: Scaling Back Marcellus/Utica Drilling). We said, based on our back-of-the-envelope calculations, we expect Gastar will raise around $100 million from issuing the new stock. After we published yesterday, Gastar released an update on their stock offering to say they expect to raise…
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About MDN | Allegheny County | Meetings | Pennsylvania

MDN to Attend Shale Insight Next Week in Pittsburgh
September 19, 2014September 25, 2014

A shout out to MDN readers who may be attending the always-excellent Shale Insight conference ~~next~~ this week in Pittsburgh. If you’re going, drop MDN editor Jim Willis an email (jim@marcellusdrilling.com). He would like to meet you at the show!

Once again, as in past years, Jim will be hanging out at the NGI (Natural Gas Intelligence) booth. If you haven’t considered going, we give Shale Insight our highest recommendation as the premier show of its kind–covering all things Marcellus (and Utica). Give it a look: //shaleinsight.com. See you at the show!
Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Sep 19, 2014
September 19, 2014September 19, 2014

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, Sep 19, 2014”
Chevron | Energy Companies | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

CSSD Bestows First Certification for Sustainable Drilling: Chevron
September 18, 2014September 18, 2014

In March 2013, the Center for Sustainable Shale Development (CSSD) burst onto the scene. It had been a closely guarded secret, the creation of a few hand-picked people from both industry and the environmental movement working together to see if there is any common ground on which both sides can agree that shale development would be safe, sustainable AND affordable. They worked hard for over a year and finally hammered out a set of 15 standards that if a driller (or midstream company or contractor) would meet, it would get a stamp of approval from both the industry and environmental groups as being a good goobie–a safe driller. We were somewhat skeptical from the start (see Important: Drillers & Enviros Form New Group, Launch Cert Program). However, the time for skepticism may be over. Today the CSSD announced they have certified their very first driller–one of their founding members–Chevron…
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Energy Services | GreenHunter Resources | Industrywide Issues | Meigs County | Ohio | Wastewater

GreenHunter Gets Green Light for 4 New OH Injection Wells
September 18, 2014September 18, 2014

This one won’t please the anti-drilling nutters in Ohio. GreenHunter Resources (division of Magnum Hunter) announced on Tuesday they have received permits and have concluded successful testing to bring four new Utica/Marcellus wastewater injection wells online in Meigs County, OH. With the addition of these four new injection wells, GreenHunter will be operating a total of 13 such wells. Each of the new wells can handle 3,000-5,000 barrels of brine/wastewater per day. According to GreenHunter, most of that new capacity coming online is already spoken for. They already have major drillers locked up as customers for the new capacity because the need is so great. The company also says the wells are ready to be begin accepting wastewater that’s barged down the Ohio River (hint hint U.S. Coast Guard)…
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Energy Companies | Gastar Exploration

Gastar 2015 Budget: Scaling Back Marcellus/Utica Drilling
September 18, 2014September 18, 2014

A pair of announcements issued by Marcellus/Utica driller Gastar Exploration on Monday. One of the announcements is that the company is floating another 17 million shares of stock to help raise more operating capital. The second (we would argue related) announcement is a brief update on Gastar’s 2015 capital budget. The company will spend $257.3 million in 2015, comprised of $222.7 million for drilling, completion and infrastructure costs; $28 million for land and seismic expenditures; and “other” costs of $6.6 million. The interesting tidbit in Gastar’s 2015 budget announcement is how much they spend to drill a well in various plays, including the Marcellus and the Utica, and that in 2015 they won’t drill very much in the northeast…
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CNG/LNG | Economic Impact | Exporting | Industrywide Issues | Luzerne County | Pennsylvania

Air Products Wins Contract for TX LNG Plant, Marcellus Connection?
September 18, 2014September 18, 2014

This is the kind of story MDN enjoys telling–connecting dots that others haven’t noticed. In broad brush strokes, Air Products announced on Tuesday that they have won the contract to provide two massive liquefied natural gas heat exchangers for Freeport LNG in Freeport, Texas. The heat exchangers will take two years to build and both will be built at their Wilkes-Barre, PA plant. At first blush you may not think there is a connection to the Marcellus/Utica, but there is. Here’s how the Air Products announcement all ties together for the Marcellus Shale (and what you won’t find anywhere else)…
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CONE Midstream | CONSOL Energy | Energy Companies | Energy Services | Industrywide Issues | Noble Energy | Pipelines

CONSOL/Noble IPO for CONE Midstream Hopes to Raise $423M
September 18, 2014September 18, 2014

Three weeks ago MDN brought you the news that CONSOL Energy together with Noble Energy (two drillers who joint venture together on some Marcellus drilling) have joined forces to form a midstream (pipeline) company called CONE Midstream to hook up pipelines to their Marcellus wells (see CONSOL & Noble Energy Form New Marcellus Midstream Company). The new pipeline company will take the corporate form of a master limited partnership, or MLP. Yesterday Noble announced an initial public offering (IPO) for “units” in the new company (think shares of stock). The companies hope to sell 20.1 million units and raise $422.6 million for the fledgling midstream company…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

Scientific American Reporter Admits Real Reason He Hates Fracking
September 18, 2014September 18, 2014

For years MDN has made the case that so-called environmental groups and individuals highly placed in the environmental movement are not opposed to shale drilling because “fracking contaminates water supplies” and all of the other arguments they frequently throw out as red herrings to confuse and obfuscate. Recent studies by the federal government and researchers at top universities are proving the converse–that fracking and shale drilling doesn’t contaminate water, the environment, etc. Our observation and contention (for years) has been these people have had a philosophical snap–a mental breakdown–and they now irrationally hate all fossil fuels as a source of energy. Maybe they overdosed on Frosted Flakes and Captain Planet cartoons on Saturday mornings as children…who knows? What is indisputable is their abject hatred of oil and gas simply because it comes from the ground (“extractive”) and it’s based on carbon–the same element their own bodies are based on. How utterly stupid is that? We have yet more proof that these nutters infest even storied publications like Scientific American…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

The Urgent Case for a Ban on Food & Water Watch
September 18, 2014September 18, 2014

The anti-drilling nuts at Food & Water Watch (FWW) just keep getting nuttier. FWW is a highly partisan, highly anti-drilling non-profit that raises huge sums of money to fund faux research and efforts to get fracking, shale drilling–anything to do with fossil fuels–banned. We often refer to them as “odious” because that’s precisely what they are. They lie so often about shale drilling it’s hardly worth mentioning any more. Their lies aren’t doing the trick, so they’ve amped it up a notch and have just issued a brand new report titled, “The Urgent Case for a Ban on Fracking” (full copy below). Hence the title of this article. We think there’s a much stronger case to be made to ban FWW than to ban fracking…
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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Sep 18, 2014
September 18, 2014September 18, 2014

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, Sep 18, 2014”
Greene County (PA) | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Research

Federal NETL Study: Fracking Doesn’t Contaminate Water Supplies
September 17, 2014September 17, 2014

This is a very important story that MDN has been following for more than two years. In June 2012, MDN reported the launch “out of nowhere” of a study by U.S. Dept. of Energy’s National Energy Technology Laboratory (NETL) to test whether or not faults, or large cracks that sometimes exist through multiple rock layers, can create a pathway for hydraulic fracturing fluids to migrate to aquifers (see NETL Study of Faults & Fracking, Are We Being Set Up?). We were a tad skeptical at first, but we were soon reassured this is real and unbiased science (see Update on NETL Faults & Fracking Study). A year later, the preliminary data reported by NETL was encouraging (see Breaking: Obama DOE Says Study Shows Fracking Fluids Don’t Migrate). The final version of the study, more than two years in the making, was published in the Proceedings of the National Academy of Sciences on Monday (full copy below). What did it show? According to the headline of an AP story: “Landmark fracking study finds no water pollution”…
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Energy Services | Industrywide Issues | Pipelines | Spectra Energy

Spectra Energy New England Pipeline Gets a Name & a Partner
September 17, 2014September 17, 2014

Yikes. Pipelines planned for the northeast continue to spring up. They’re needed, that’s to be sure. And they bring with them billions of investment (and loads of jobs). All good things. Ultimately it will mean lower utility costs for gas and electric, particularly in New England–if these companies can get them built. One of the most recent entrants is Spectra Energy with their announcement in July to expand the Algonquin and Maritimes pipeline systems adding an additional 1 billion cubic feet of natural gas per day by 2017, much of it slated for New England’s electric generating plants (see Spectra Energy to the Rescue! New England Pipeline Expansion). That project now has a name and a new partner. It’s being called the Access Northeast project and Spectra has picked up a partner in Northeast Utilities to help shoulder the expense, pegged at $3 billion to build it…
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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Energy Services | Eureka Midstream | Industrywide Issues | M&A

Morgan Stanley Buys Partnership in Eureka Hunter for $65M
September 17, 2014September 17, 2014

Yesterday Magnum Hunter, a Marcellus/Utica driller with a number of subsidiaries, including midstream company Eureka Hunter, announced that Morgan Stanley is becoming a partner in Eureka Hunter. Price tag for becoming a partner? $65 million. According to Magnum Hunter and Morgan Stanley, Eureka Hunter is now worth $1 billion. The deal itself is complicated and includes multiple subsidiaries and names you’ve likely never heard of (like Ridgeline Midstream and ArcLight Capital Partners). We just told you the news in a nutshell. Below is the press release from Magnum Hunter announcing that news–a press release obviously written by lawyers, rendering it virtually unreadable for the rest of us…
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