Marcellus Drilling News

Economic Impact | Electrical Generation | Industrywide Issues | Ohio | Statewide OH

New SW Ohio Electric Generating Plant to be Powered by Natgas
January 30, 2014January 30, 2014

Middletown, OH, located on the border of Butler and Warren counties in southwestern Ohio, is about to get a new $500 million natural gas-fired electric generating plant. That is, they will if NTE Energy’s plan is approved. The new plant will generate enough electricity to supply 400,000 homes. Although the story we found about the plant doesn’t say where the gas will come from, you can bet your bottom dollar it will be fueled by Utica and Marcellus Shale gas…
Read More “New SW Ohio Electric Generating Plant to be Powered by Natgas”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Jan 30, 2014
January 30, 2014January 30, 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, Jan 30, 2014”
Antero Resources | Energy Companies | Ohio | Statewide OH | Utica Shale

More on Antero’s Record Shattering Utica Shale Wells
January 29, 2014January 29, 2014

Yesterday MDN brought you the news that Antero had turned in some of the highest producing wells–ever–in the Utica Shale (see Another Antero Utica Well Top of the Heap: IP Rate of 40.2 Mmcf/d!). We got the context of their announcement slightly wrong, and admitted it at the top of that article. We believed one of those wells to be the #1 overall producing well in the Utica–but such is not the case. As we explained, Antero is now converting the production output from their wells into “gas equivalent” because many of these wells produce a lot of natural gas liquids, including ethane, butane and propane. Even though we got it slightly wrong, the wells are still awesomely impressive for the their record-breaking output.

MDN thanks our friend and intrepid reporter Bob Downing at the Akron Beacon Journal for pointing out the change-up in how Antero reports its numbers (he gave us a courtesy call). Bob went on to research the Antero announcement and found that three of their recently announced wells are ranked in the Utica “top 10” most productive wells overall. Although the Antero wells may not be #1 in producing the most methane (“dry gas”), they produce an enormous amount of NGLs, which are a lot more profitable than plain methane! Here’s a pair of reports from Bob from yesterday:
Read More “More on Antero’s Record Shattering Utica Shale Wells”
Chesapeake Energy | Energy Companies | Industrywide Issues | Jefferson County (OH) | Lease & Royalty Payments | Litigation | Ohio

OH Judge Says Filing Paperwork is Enough to Extend Lease
January 29, 2014January 29, 2014

Ohio landowners should be aware of an important court case just decided that says, in essence, filing paperwork is enough proof of a driller’s intent that a lease can be extended beyond the initial signing period. Several landowners in Jefferson County, OH signed a lease with Fortuna Energy in 2006 that was later sold to Chesapeake Energy (in 2010). The lease was for a 5-year period. Three days before the end of the lease Chesapeake filed a Declaration of Pooled Unit (DPU) with the Ohio Department of Natural Resources. That is, they told ODNR in essence “here’s a group of properties we intend to drill on soon” requesting permission to “pool” them together into a drilling unit. That simple act was enough proof, according to a U.S. District Court judge, to allow Chesapeake to extend the original lease beyond the original 5 years.

And so now the landowners are stuck waiting for Chesapeake to actually do something other than file paperwork. Good luck with that…
Read More “OH Judge Says Filing Paperwork is Enough to Extend Lease”
Industrywide Issues | Jobs | Ohio | Statewide OH

Utica Shale Transient Workers in Ohio Crosshairs
January 29, 2014January 29, 2014

Calling OH Gov. John “foreigner hunter” Kasich: Ohio is being invaded by foreigners! Time for a dragnet to kick them out!! We refer, tongue-in-cheek, to Kasich’s disdain for non-Ohioans moving to Ohio to work in the Utica Shale drilling industry–doing nasty, hard jobs that often require someone who’s skilled at doing them–like pipefitting and welding, and man-handling equipment at rig sites (called a roustabout). Ohioans can certainly be trained, but often it takes people who have done it to show them how.

The Columbus Dispatch has taken a decidedly anti-drilling stance recently with a flurry of articles that attack the Utica Shale industry. Their latest article takes aim at “transient” workers–people Kasich calls foreigners. It’s jingoistic and repugnant–but then prejudice and ignorance always are. Here’s the Dispatch waxing eloquent on “transients”…
Read More “Utica Shale Transient Workers in Ohio Crosshairs”
Energy Companies | Energy Services | Gulfport Energy | Industrywide Issues | M&A | MarkWest Energy | Ohio | Ohio Gathering | Pipelines | Processing Plants | Statewide OH | Summit Midstream

Summit Midstream Closes Deal to Buy 40% Stake in Ohio Gathering
January 29, 2014January 29, 2014

Last December MDN told you that Summit Midstream was buying out Gulfport Energy’s share of the Ohio Gathering pipeline and processing system (see Summit Midstream Buys Gulfport’s Interest in Ohio Gathering). As we said at the time, the deal appears complicated on paper with multiple names (like Blackhawk Midstream), but the bottom line was/is that Summit will be the 40% owner and MarkWest Energy will remain the 60% owner of the Ohio Gathering system.

Yesterday, in an announcement by Summit that’s equally dense with details (likely written by lawyers), Summit announced they’ve closed the Ohio Gathering deal. That’s the sum total of this announcement–that the deal is now done:
Read More “Summit Midstream Closes Deal to Buy 40% Stake in Ohio Gathering”
Energy Companies | Pennsylvania | Rice Energy | Statewide PA

Captain Planet to the Rescue! Rice Energy’s Sense of Humor
January 29, 2014January 29, 2014

We just love this story. Rice Energy is one of our favorite Marcellus/Utica drillers. It was founded by Dan Rice and his boys. Dan was, for over 10 years, the single most successful mutual fund manager in the United States. After he helped found Rice Energy to take advantage of shale drilling in the northeast, his bosses at Blackrock fired him–for their own mistakes (see BlackRock’s Screw-up with Dan Rice & Rice Energy). Dan has had the last laugh, however. The company went public last week and is now valued at $2.8 billion (see Rice Energy IPO Soars, Brings in $84M More Than Expected).

What does this have to do with Captain Planet, you ask? It seems that Dan and the boys have a healthy sense of humor (which is why we love Rice). Instead of naming their wells after the landowner, which is the usual practice, they instead name Rice wells after super heroes! Including, yes, Captain Planet–the wacky environmentalist cartoon character from the 1990s. It just brings a smile to our faces, and we thought it would to yours as well. Below is the list of Rice wells and the super heroes they’re named after…
Read More “Captain Planet to the Rescue! Rice Energy’s Sense of Humor”
Anti-Drilling/Fossil Fuel | Broome County | Hydraulic Fracturing | Industrywide Issues | New York

The Band is Back Together! Anti-Drillers to Visit Binghamton U
January 29, 2014January 29, 2014

The band is three-fourths back together. A group of radical anti-drilling organizations, including NYRAD (New York Residents Against Drilling), the League of [Liberal Democrat] Women Voters, NYPIRG, the Sierra Club and other lesser-known wacko organizations are sponsoring an “information” (i.e. propaganda) night at Binghamton University this Friday. And they’ve re-assembled most of the band, er, anti-drilling “experts” that visited Cornell University with their traveling road show/circus last October (see Latest Laughable NY Anti Tactic – Not Enough Gas, Just Move Along).

Retired systems engineer for IBM and Lockheed Martin Jerry Acton will be there to induce death by PowerPoint. So too will retired Mobil Oil Executive Vice President Lou Allstadt (who’s already made his millions, so he doesn’t want any silly “farmers” to make money too, who the *$#@ do they think they are?). Oh, and Brian Brock, an anti-drilling retired geologist. Notice a theme here? All retired, all anti-drilling, with nothing to do. Road trip!…
Read More “The Band is Back Together! Anti-Drillers to Visit Binghamton U”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Landfills | Mahoning County | Ohio | Wastewater

Glow-in-the-Dark Bob Hagan: Shrill and Nutty
January 29, 2014January 29, 2014

Ever notice that when anti-drillers can’t seem to convince the public of their views, they get nuttier? They start spinning wild yarns, like all that fracking waste is radioactive and we’re going start glowing in the dark any day now. That’s the kind of wild tale being spun by Youngstown, OH Rep. Bob Hagan (Democrat).

Because not enough Ohioans are turning against Utica Shale drilling, it’s time to ratchet up the rhetoric and old Bob is ready to pour it on. Here’s his latest glow-in-the-dark warning…
Read More “Glow-in-the-Dark Bob Hagan: Shrill and Nutty”
Broome County | New York

New Gas Drilling Website Debuts in Broome County, NY
January 29, 2014January 29, 2014

Huh. Broome County, where MDN is written from, has developed a new website to provide information about natural gas–as in gas drilling (should it ever come to NY). We’ve given the site a good look (check it out here). It’s well done and has some useful information for landowners and residents and those with questions in general. Broome County Executive Debbie Preston spearheaded the effort (she’s a sharp gal, we’re glad she’s on the pro-drilling side of the issue).

Our only complaint: We didn’t even know this site was being created, and it doesn’t in any way reference Marcellus Drilling News, which is a small business in Debbie’s back yard devoted to providing news and resources–and promoting–safe gas drilling. So although we like the site and think it’s great, we’re disappointed we weren’t even contacted about it…
Read More “New Gas Drilling Website Debuts in Broome County, NY”
Industrywide Issues | M&A

PwC: Marcellus, Other Shale Play M&A Deals Heat Up in 2013
January 29, 2014January 29, 2014

According to one of the top accounting/consulting firms in the world, PricewaterhouseCoopers (PwC), mergers & acquisitions (M&A) activity in the oil and gas sector in the U.S. heated up in 2013 and “included a strong uptick in the last three months of the year.” Overall there were 182 total deals accounting for $115.9 billion in total deal value for 2013. Also according to PwC, shale was an important part of that–in particular the Marcellus Shale.

PwC tracks M&A deals worth $50 million or more. During 4Q13, there were four such deals in the Marcellus, totaling $1.1 billion. The Utica had two deals in 4Q13 worth $263 million. For all of 2013, there were 79 shale deals (across all shale plays) that contributed $53.2 billion–that is, shale deals represented half of all oil & gas M&A deals during 2013. Here’s the announcement and analysis from PwC (sorry, we couldn’t score a copy of the full report, just the summary):
Read More “PwC: Marcellus, Other Shale Play M&A Deals Heat Up in 2013”
Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Jan 29, 2014
January 29, 2014January 29, 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: Wed, Jan 29, 2014”
Antero Resources | Energy Companies | Noble County | Ohio | Utica Shale

Another Antero Utica Well Top of the Heap: IP Rate of 40.2 Mmcf/d!
January 28, 2014January 28, 2014

Caution: MDN’s comments below are not completely accurate. It seems that Antero pulled a fast one on us, and unlike their previous updates, they have (starting with this update) used gas equivalents in their production reporting. The Antero Yontz well is still the highest initial production methane (natural gas only) well in the OH Utica. That’s not to take away from the incredibly productive Milligan well mentioned below–but much of Milligan’s production is NGLs and not methane. The Milligan is still a great (and profitable) well! It’s just not the top dog natgas producing well we thought it was.

Wow, we’re speechless! (And that’s saying something.) Last August MDN told you that Antero Resources had de-throned Gulfport Energy for having the highest yielding 24-hour rate Utica Shale well (see Antero Resources Utica Well Produces Stratospheric 38.9 Mmcf/d). Antero’s amazing Yontz well is located in Monroe County, OH, south of Gulfport’s super achieving wells in Belmont and Harrison counties. South continues to be better. Yesterday Antero released an operational update, and tucked away in that update is a new reigning Utica champ. Antero reports the Milligan 2H well in Noble County produced a 24 hour initial production (IP) rate of 40.2 Mmcf/d gas equivalent (it produces lots of hydrocarbons other than methane, so the number is converted to gas for apples to apples comparisons). That is the single highest producing shale well we’ve ever heard of–anywhere. No wonder Aubrey McClendon once famously said the Utica Shale is the biggest thing to hit Ohio since the plow!

Aside from the Milligan 2H, there’s a lot of other news in the Antero update, including a very active Marcellus Shale drilling program (they currently have 15 rigs in the Marcellus), and the first of three compressor stations to help get their gas to market has come online in the Utica (two others are behind schedule). Here’s the full Antero update for 4Q13, with a bit of forward looking to 2014…
Read More “Another Antero Utica Well Top of the Heap: IP Rate of 40.2 Mmcf/d!”
Accidents | Blue Racer Midstream | Caiman Energy | Dominion Energy | Energy Services | Industrywide Issues | Marshall County | Processing Plants | West Virginia

Blue Racer: Natrium Plant Back Online, New Customers, Adds Barging
January 28, 2014

Big news from Blue Racer Midstream. Last September there was an explosion and a fire “isolated to a small area” at the Blue Racer Natrium processing and fractionation facility in Marshall County, WV (see Explosion/Fire at Blue Racer’s Natrium, WV Processing Plant). The fire knocked the plant offline for customers needing to process wet gas. At least two (perhaps more) customers found other sources to process their wet gas (see Blue Racer’s Natrium Plant to Remain Offline Until Jan 2014). According to a single sentence buried in a press release issued yesterday, the Blue Racer Natrium plant is finally, after five long months, back online. No date was given for when it resumed operations–presumably yesterday or over the weekend. The statement says, “The Natrium I processing unit has recently returned to service following a temporary shutdown that occurred after a fire damaged the unit.”

No mention of how long it was offline (five months!) or the work done to get it back online. Probably the lawyers telling them to keep their mouth shut. Anyway, we’re happy to see it back up and running. In addition to that very big news (which was decidedly downplayed in the press release), Blue Racer also announced yesterday they’ve picked up several new customers for an expansion at the Natrium processing/fractionation plant (see who below). Finally, Blue Racer announced that in addition to the current rail, truck and pipeline they use to move NGLs (natural gas liquids) from the plant, they’re adding barging down the Ohio River. Notwithstanding the downplayed reopening of the Natrium plant, this is one of the most enlightening press releases from a midstream company we’ve seen in some time…
Read More “Blue Racer: Natrium Plant Back Online, New Customers, Adds Barging”
Economic Impact | Energy Services | Ethane | Industrywide Issues | Odebrecht | Processing Plants | West Virginia | Wood County

Houston Investment Firm a True Believer in WV Cracker Plant
January 28, 2014January 28, 2014

A huge vote of confidence by an investment firm that the ethane cracker plant recently announced by Gov. Earl Ray Tomblin and planned for Parkersburg, WV will actually be built (see WV Announces Brazilian Company to Build Ethane Cracker Complex). Siltstone Capital, an investment and advisory firm with corporate offices in New York and Houston, bought the old Blue Cross and Blue Shield building in downtown Parkersburg–vacant since 2009–to set up offices for the company and to lease out space they don’t use themselves.

Siltstone invests in companies in the energy sector: exploration and production, oil services, and midstream. If they weren’t totally convinced that the Odebrecht cracker plant would be built, you can be sure Siltstone would not have spent $475,000 on a vacant building in Parkersburg, WV (population 31,492)…
Read More “Houston Investment Firm a True Believer in WV Cracker Plant”
Economic Impact | Industrywide Issues | Jobs | Muskingum County | Ohio | Supply Chain | Utica Shale

OH Company Doubles Jobs/Revenue by Targeting Utica Shale Drillers
January 28, 2014January 28, 2014

Dan Pottmeyer, president of Producers Service Corp located in Zanesville, OH, says his company is the only fracking company that’s “home-grown in Ohio.” (That’ll be good news for OH Gov. John “foreigner hunter” Kasich. He likes ’em home-grown.) Pottmeyer’s company used to send oilfield services crews into Ohio’s conventional oil and gas fields for low-volume fracking work. However, after purchasing new equipment and more than doubling the work force, Pottmeyer now sends his crews into the field to work on Utica Shale wells–competing with the likes of oilfield services titans like Halliburton and Baker Hughes. Although he doesn’t disclose figures for the privately-held company, Pottmeyer says revenue has more than doubled in the past couple of years.

The Producers Service Corp story is a good story–an important story–of how local businesses can figure out how to plug in to the Marcellus and Utica Shale supply chain. Which is why we love to bring you stories like this one…
Read More “OH Company Doubles Jobs/Revenue by Targeting Utica Shale Drillers”