Marcellus Drilling News

American Energy Partners | Chesapeake Energy | Energy Companies

Another Brilliant McClendon Move: ‘Pure Play’ Public Companies
September 5, 2014September 5, 2014

Big news from MDN friend and Marcellus/Utica driller Aubrey McClendon. McClendon, now CEO of American Energy Partners (and former CEO of Chesapeake Energy), told a Hart Energy conference yesterday that the companies he’s started since leaving Chesapeake will soon go public–each of them individually. And he’ll start even more companies that will go public. McClendon is adopting a “pure play” approach in which each company will be independently run and focus on a single shale play. Once again McClendon has taken the road less traveled and is pioneering a brilliant strategy to dominate the plays which he chooses to target. MDN’s words when the Chesapeake board dismissed Aubrey (from April 1, 2013) were prophetic: “Why is it an error to show McClendon to the door even in light of his aggressive financial deals? You think McClendon will take his piles of money and sit on a Caribbean beach somewhere? In your dreams! He’ll be back, and he’ll start (or buy) another company that will directly compete with Chesapeake. You can bank on it.” (see McClendon Exits Chesapeake, Well-Bonused “Friends” Replace Him)…
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Energy Services | Industrywide Issues | Ohio | Pennsylvania | Pipelines | Statewide OH | Statewide PA | Transco | Williams

Yet Another Williams Transco Expansion: Western Marcellus Project
September 5, 2014September 5, 2014

Pipeline (infrastructure) projects keep getting announced fast and furiously–we can hardly keep up! Williams has announced yet another upgrade to their Transco Pipeline–this one called the Western Marcellus Pipeline Project. We get details about the new project from an open season announcement from Williams posted yesterday. The Transco is one of the country’s largest interstate natural gas pipelines–a 10,200-mile pipeline system that extends from South Texas to New York City. In February Williams announced an $2.1 billion expansion of the Transco to carry PA Marcellus gas to the Eastern seaboard, what they call the Atlantic Sunrise project (see Williams Plans $2.1B Transco Pipeline Expansion, 100% Sold Already). Last week we told you about another expansion of the Transco, called Diamond East, that will beef up capacity on the Transco from Lycoming and Luzerne counties in northeast PA all the way to Mercer County, NJ, a $500-$800 million project (see Williams to Expand Transco Pipeline Again, More Marcellus to NE). Yesterday Williams announced the Western Marcellus Pipeline project, a project that will give western PA Marcellus and eastern OH Utica producers a way to get their gas to markets in the southeast (Louisiana and Texas) and even to Florida…
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Energy Services | Industrywide Issues | Luzerne County | Pennsylvania | Pipelines | Statewide PA | UGI Energy Services

Successful Open Season Concludes for Marcellus PennEast Pipeline
September 5, 2014September 5, 2014

Barley three weeks ago a consortium of four companies announced a new pipeline project to carry Marcellus Shale gas from Luzerne County in northeastern Pennsylvania to Transco’s Trenton-Woodbury interconnection in New Jersey. The $1 billion PennEast Pipeline will be built by energy utility giant UGI, along with AGL Resources, NJR Pipeline Company (subsidiary of New Jersey Resources) and South Jersey Industries (see 3rd New NEPA Marcellus Pipeline Proposed, Connects to Trenton, NJ). The consortium announced yesterday the successful close of a very fast binding open season–a period of time when potential customers sign on the dotted line to take capacity in the new pipeline. Of course it didn’t hurt that the consortium itself had already reserved nearly half of the 1 billion cubic feet per day capacity for themselves! Still, the other half is now sold out too (a total of 965,000 dekatherms, or 936 million cubic feet, or .936 billion cubic feet)…
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Energy Services | Ethane | Exporting | Harrison County | Industrywide Issues | Kinder Morgan | Ohio | Pipelines

UTOPIA Open Season Begins Today – OH to MI NGL Pipeline
September 5, 2014September 5, 2014

Back in December MDN told you about Kinder Morgan’s new proposed new pipeline called the Utica To Ontario Pipeline Access, or UTOPIA (see UTOPIA is Coming! The UTOPIA Pipeline, that is…). The 240-mile natural gas liquids (NGL, specifically ethane and propane) pipeline will connect multiple fractionation facilities in Harrison County, OH, to Riga, MI. From Riga, the NGLs will hitch a ride via the KM Cochin Pipeline east to Windsor, Ontario, Canada where they will be delivered to NOVA Chemicals. The new $300 million, 10-inch pipeline from OH to MI is what is called UTOPIA. Yesterday KM announced a binding open season for UTOPIA…
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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Litigation | Lycoming County | Pennsylvania | Regulation

Philly Inquirer Exposes PennFuture Lies in Lycoming County Case
September 5, 2014September 5, 2014

Yesterday MDN brought you the news that the virulently anti-drilling PennFuture was crowing about another scalp their lawyers have claimed in preventing fracking in Lycoming County, PA (see Bad PA Supreme Court Act 13 Decision Comes Home to Roost). We’ve often told you about the lying propaganda pumped out by PennFuture. Our words certainly don’t bother them. But we bet the words of none other than the Philadelphia Inquirer do bother them. The Inquirer is also out with a story about the challenge by PennFuture and a couple of ninny nanny “neighbors” (more than 2/3 of a mile away) who abused the recent Supreme Court decision to force the town to not allow the drilling it wants to allow. The Inquirer skewers PennFuture, pointing out the lies they tell…
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Industrywide Issues | Pennsylvania | Research | Statewide PA

MSC Launches Study on Water Sample Testing & Standards
September 5, 2014September 5, 2014

It’s relatively easy for so-called researchers with an agenda (and backed by Park Foundation money), to manufacture “proof” that shale drilling is evil and harms the environment. Duke University seems to be one hotbed of such so-called research (see Duke Study #2: Drilling Causes Methane Migration in Water Wells?). Cornell University is another Park Foundation funded source of so-called research (see Devastating Critique of New Ingraffea/Howarth Methane Study by EID). Much of that so-called research claims when shale drilling arrives, it causes methane to migrate into nearby water wells. That evil ole methane just can’t help itself! The highly respected trade organization, the Marcellus Shale Coalition (MSC), is tired of waiting for the EPA and others to develop standards that can be used when determining whether or not methane in water was caused by drilling–or far more likely–was there all along…
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Alternative Energy | Industrywide Issues

Shale Gas vs Wind and Solar – A Few Sobering Facts
September 5, 2014September 5, 2014

We’re certainly not anti-wind or anti-solar. We believe those technologies hold promise for the future. But they simply can’t compete with natural gas as the most economical and even the most environmentally friendly way of supplying electricity here and now. Every form of energy has its advantages and disadvantages. The fact (not opinion) that natural gas beats so-called renewables here and now is not just our opinion. We spotted an excellent column–from an Indian professor–that points out some sobering facts in the shale gas vs wind and solar debate…
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Anti-Drilling/Fossil Fuel | Industrywide Issues

Soros Invests Big in Argentine Shale – No Comment from PAI
September 5, 2014September 5, 2014

Why is it that the nefarious anti-drilling Public Accountability Initiative (PAI), responsible for closing down a new shale institute at University at Buffalo (see Univ at Buffalo President Shuts Down (Censors) Shale Institute) and for making the University of Texas look foolish (see Soros-backed PAI Makes University of Texas Look Foolish), doesn’t take on their billionaire benefactor, George Soros himself? As we’ve previously written, Soros plays both sides of the fracking issue (see George Soros Plays Both Sides of Fracking Issue, for Profit). Word came out Wednesday that Soros is making yet another play to support fracking–this time in Argentia. And where is the PAI’s lampooning, castigating and otherwise demonizing of old George? Nowhere to be found. Crickets. Nothing. Why is that?…
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Anti-Drilling/Fossil Fuel | Earthquakes | Industrywide Issues | Mahoning County | Ohio | Statewide OH

Run for the Beach! The Hills are “Swarming” with Earthquakes!!
September 5, 2014September 5, 2014

Who knew that earthquakes can “swarm”–you know, like bees or locusts? That’s the absurd fearmongering nonsense being peddled by the nutters at Frackfree Mahoning Valley (Mahoning County, OH). They recently issued a press release (below) that says if wastewater injection wells are allowed to continue operating in Mahoning County, “swarms” of earthquakes will follow. Sounds almost biblical, doesn’t it?…
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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Sep 5, 2014
September 5, 2014September 5, 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 5, 2014”
Energy Companies | Pennsylvania | Shell | Tioga County (PA) | Utica Shale

Shell Drills 2 Successful Utica Wells in NEPA Marcellusland
September 4, 2014September 4, 2014

Shell has had an on-again, off-again, on-again love affair with North American shale (can anyone say “schizophrenia”?). In March, Shell’s new CEO Ben van Beurden said the company was not impressed with American shale plays and cutting back (see Cuts Coming to Shell’s Marcellus Shale Operations). Shell proceeded to sell 208,000 Marcellus Shale acres in a fire sale to Rex Energy, and a few days later picked up another 155,000 Marcellus Shale acres as part of a larger deal to unload other shale play acreage (see After Selling 208K Marcellus Acres, Shell “Buys” 155K More Acres!). Talk about schizophrenic! Now we get word from Shell that they’ve achieved something truly noteworthy: they’ve drilled six Utica wells in northeastern Pennsylvania! Yesterday Shell released initial production results for two of the six, and the numbers are truly impressive…
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Energy Companies | Industrywide Issues | Regulation | Statewide WV | Trans Energy | West Virginia

Trans Energy Fined $3M for Polluting WV Creeks & Swaps with Dirt
September 4, 2014September 4, 2014

Trans Energy, a smaller, “pure play” driller in the West Virginia Marcellus Shale, has just been slapped bigtime by the federal Environmental Protection Agency along with the WV Dept. of Environmental Protection. The EPA announced a deal with Trans Energy whereby the company will pay an astounding $3 million fine for “unauthorized discharge of dredge or fill material” into creeks and swamps in 15 different locations. Apparently Trans Energy didn’t get a “Mother May I?” permit when building roads and pushing dirt around at some of their Marcellus drilling sites and so will now pay a heavy fine. Oh, and speaking of the $3M fine–it will be split 50/50 between the EPA and the WVDEP. Party time at EPA HQ!…
Read More “Trans Energy Fined $3M for Polluting WV Creeks & Swaps with Dirt”
Eclipse Resources | Energy Companies | Harrison County | Monroe County | Ohio | Utica Shale

Eclipse Resources: Production Results for 7 OH Utica Wells
September 4, 2014September 4, 2014

Eclipse Resources, a small but rapidly growing independent driller focused on the Marcellus and Utica Shale region, released the initial production results for their two most recent well pads in the Utica Shale–one pad in Monroe County, the other in Harrison County. Eclipse drilled seven wells across the two pads, and if you combine them, the seven wells are producing (initial production or IP) 52.6 million cubic feet of natural gas per day, and 1,800 barrels of condensate per day. Very respectable numbers. Here’s the full details, along with a copy of an investor presentation (lots of great maps and charts) just released…
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Energy Services | Summit Midstream

Summit Midstream Floats 4M Units, Hopes to Raise $224M+
September 4, 2014September 4, 2014

Summit Midstream (pipeline company) is looking to raise another $224 million to use in their considerable midstream operation–including their increasing focus on the Marcellus/Utica. Yesterday the company issued a press release announcing they want to sell another 4 million “common units” (think shares of stock) in their master limited partnership (MLP) company. As of this morning, Summit unit shares were trading for $56.12 per share (or “unit”). At that price, if they sell all 4 million new shares, they’ll raise well over $200 million. As we’ve previously pointed out, Summit is making major moves in both the Marcellus and Utica Shale regions (see Summit Midstream 2Q14: Marcellus Rockets to #2 Operation). We expect some (much?) of the money they’ll raise in this newest offering will be used to either pay down previous deals, or perhaps be used for more expansion (acquisitions) in the northeast…
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Energy Companies | Industrywide Issues | Inflection Energy | Litigation | Lycoming County | Pennsylvania | Regulation

Bad PA Supreme Court Act 13 Decision Comes Home to Roost
September 4, 2014September 25, 2019

The anti-drilling spin machine is in full cycle from the virulent anti-drilling group PennFuture. They’re hoping you won’t notice what we’re about to point out: the rank hypocrisy of a court decision last Friday. PennFuture is out with a press release that’s all peaches and cream, butterflies and unicorns that a (low) county court in Lycoming County has tossed out a drilling permit reviewed and allowed by Fairfield Township against Inflection Energy and landowners Donald and Eleanor Shaheen. PennFuture is billing it as the first test of the PA Supreme Court’s decision to allow local towns to create their own oil and gas zoning ordinances (see PA Supreme Court Rules Against State/Drillers in Act 13 Case). “But, wait a minute!” (you may say), “The Supreme Court said towns can do as they please, right?” Right. “The town decided the well pad was OK, so what’s the deal?” Good question…
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Endeavour International | Energy Companies

Driller Endeavour Intl Decides to Skip Loan Interest Payments
September 4, 2014September 4, 2014

NOTE: MDN has revised this article (a few hours after releasing it). We orginally said that SM Energy had ended up in bankruptcy court following the aborted deal with Endeavour. That is not correct and we regret the error. SM has not (as far as we can tell) ever been close to bankruptcy. Thank you to an alert MDN reader who pointed out our mistake.

In July 2011 drilling company Endeavour International signed a deal with SM Energy to purchase 50,000 Marcellus Shale acres, three producing gas wells and a pipeline located in McKean and Potter counties in Pennsylvania for $110 million. Five months later Endeavour decided to abort the signed deal. The two sides finally settled 2 1/2 years of lawsuits earlier this year (see Endeavour & SM Energy Settle Lawsuit over PA Marcellus Properties). Why bring it up again? Because we noticed that on Tuesday Endeavour announced they would not make scheduled interest payments on their loans. According to the terms of the loans Endeavour has up to 30 days to pay. They’ve been discussing payback of the loans since June and have not yet come to new terms, so they (arbitrarily?) just decided they would withhold scheduled payments. Is there a pattern here?…
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