Marcellus Drilling News

Energy Companies | Hilcorp Energy | Lawrence County | Pennsylvania

Hilcorp Goes Hogwild in Lawrence County – 11 Pads on the Way
December 17, 2013December 17, 2013

Marcellus/Utica driller Hilcorp continues to focus its efforts in Lawrence County, PA. In fact, you may say they’ve gone “hogwild” in Lawrence! The Lawrence County Planning Commission last week reviewed plans from Hilcorp for 11 (yes 11) well pad sites. Each pad has at least one well on it, and more likely 2-4 wells (perhaps more)–meaning Hilcorp plans to drill at least a couple dozen wells in the near future in Lawrence.

Here’s the details for where the 11 well pads are located:
Read More “Hilcorp Goes Hogwild in Lawrence County – 11 Pads on the Way”
Energy Companies | WPX Energy

WPX Energy CEO Ralph Hill is Out, Interim CEO James Bender is In
December 17, 2013December 17, 2013

A “hmmm, that’s interesting” story from WPX. Yesterday we told you about WPX’s kerfuffle over water buffaloes in Susquehanna County, PA (see WPX Decides to Let Franklin Forks Families Keep Water Tanks). Today, in what is likely unrelated to the water buffalo story, WPX has suddenly announced the departure (booting out?) of CEO Ralph Hill at the end of this month. Hill has spent his entire career (32 years) first with Williams, and then with the spun-off WPX Energy. However, he’s not an old man by any stretch–perhaps in his early to mid-fifties. The announcement wishes him well in his “future endeavors”–not in his “retirement.” Not only is Hill out as CEO, he’s off the board of directors too. Hmmm. What does it all mean?

The company is appointing James J. Bender as interim president, CEO and board member, effective Dec. 31, 2013. Hill will stick around until March to help with the transition. Here’s the mysterious WPX announcement issued today:
Read More “WPX Energy CEO Ralph Hill is Out, Interim CEO James Bender is In”
Energy Services | Ethane | Harrison County | Industrywide Issues | Kinder Morgan | NGLs | Ohio | Pipelines | Statewide OH

UTOPIA is Coming! The UTOPIA Pipeline, that is…
December 17, 2013December 17, 2013

Kinder Morgan announced yesterday a plan to build a new 210-mile natural gas liquids (NGL) pipeline that 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 has been cleverly named Utica To Ontario Pipeline Access (UTOPIA). The NGLs that will flow through the pipeline will already be refined (“fractionated” or separated) and will include ethane and propane.

Here’s Kinder Morgan’s good news announcement that UTOPIA is coming:
Read More “UTOPIA is Coming! The UTOPIA Pipeline, that is…”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

Cuomo Obstinately Says He’ll Continue to Dither on Frack Decision
December 17, 2013December 17, 2013

New York Gov. Andrew Cuomo continues to prevaricate/dither/postpone his decision on whether or not to allow fracking for shale gas in New York State. He said so yesterday at a news conference. By continuing to delay a decision far past everyone’s measure of reasonableness, he’s totally eliminated any chance he had of running for president. He’s also courting a lawsuit that will embarrassingly force him to do his job and make him release the new drilling rules (see Tom West Demands DEC Com. Martens Release the SGEIS – Soon). Today is the deadline by which Norse Energy’s lawyer Tom West has demanded a fixed date when the Cuomo administration will release new drilling regs. If that doesn’t happen (and it almost certainly won’t), a lawsuit to force the issue will be filed–perhaps as early as this month. Cuomo is out of time and out of options–yet he continues to prevaricate.

Meanwhile, Cuomo’s State Health Commissioner, Nirav Shah, continues to be Cuomo’s spear catcher and take all the heat because Shah refuses (at Cuomo’s direction) to announce whether or not he believes proposed drilling rules will protect the nebulous “public health.” Shah has humorously taken to spouting things about science being done in “sacred places.” Apparently sacred places are located everywhere but New York. Here’s how Cuomo’s dithering talk went yesterday…
Read More “Cuomo Obstinately Says He’ll Continue to Dither on Frack Decision”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

A Natural Gas Christmas Carol, Starring Gov. Andy
December 17, 2013December 17, 2013

An early Christmas present for New York landowners and those with an interest in drilling in New York State, provided by our friends at the Joint Landowners Coalition: a “Natural Gas Christmas Carol”. It is funny, and sad–all at the same time. Give it a read! (Hey, it’s better than a lump of coal.)

Here’s the letter and a link to the PDF from the JLCNY…
Read More “A Natural Gas Christmas Carol, Starring Gov. Andy”
Energy Companies | Halcon Resources | Ohio | Statewide OH

Halcon Resources Lowers 2014 CapEx Spending, Not Production
December 17, 2013December 17, 2013

Yesterday Utica Shale driller Halcon Resources lowered their “guidance” (what they expect to do) in capital spending for 2014. That is, they said they will spend less money–about 14% less–than previously announced on their drilling programs in 2014. However, they also added they still expect to produce about the same amount of oil and gas, even though they’ll spend less.

Also in yesterday’s announcement, Halcon CEO Floyd Wilson, who tends to have a salty mouth (see Halcon CEO Says No More S***** Wells in Northern OH Utica), said the company will continue to sell off “non-core conventional assets” to raise an additional $300 million. Here’s the Halcon “spend less but produce more” announcement from yesterday:
Read More “Halcon Resources Lowers 2014 CapEx Spending, Not Production”
Exporting | Industrywide Issues | Research

EIA Early Release of 2014 Report Shows Plenty of Gas for Exports
December 17, 2013December 17, 2013

Yesterday the U.S. Energy Information Administration (EIA)–the one government agency MDN actually likes and believes to be effective–released preliminary data and an abridged version of their Annual Energy Outlook (AEO) for 2014 (full copy of the “early release” version embedded below). The full version will be along in Spring 2014.

So what does the early release version show? U.S. production of crude oil and natural gas will continue to go through the roof–thanks to natural gas. Crude oil production will continue to grow until 2020 or there about, before leveling off. Natural gas? Production increases until at least 2040. In addition, EIA says the increased production in natgas means exports–by both pipeline and LNG carriers–won’t negatively affect domestic prices. That is, EIA report provides justification for further approvals to export American natural gas…
Read More “EIA Early Release of 2014 Report Shows Plenty of Gas for Exports”
Chesapeake Energy | Energy Companies | EQT Corp | EV Energy Partners | Ohio | Statewide OH | Utica Shale

EVEP’s Mark Houser Says More Utica Acreage Sales Ahead in 2014
December 17, 2013December 17, 2013

EV Energy Partners (EVEP) recently attended the 12th Annual Wells Fargo Energy Symposium in New York City. EVEP’s CEO Mark Houser addressed the gathering and delivered a fair bit of information about EVEP’s Utica Shale drilling program. With 3/4 of a million leased acres in the Utica, when EVEP talks, people listen. You may recall that EVEP had previously put more than half a million of their Utica acres up for sale (see EVEP 3Q13: No New Land Deals to Announce). They’ve since done a small deal or two–but they retain most of their acreage. At the conference, Houser said he expects to announce more deals to sell their Utica acreage in 2014 (of course we heard the same story last year, see EV Energy Partners Utica Acreage Sale Delayed Until 2013).

Highlights of Houser’s talk at the Wells Fargo Symposium, including an update on their joint ventures with other drillers and EVEP’s view on the state of the midstream in Ohio:
Read More “EVEP’s Mark Houser Says More Utica Acreage Sales Ahead in 2014”
Electrical Generation | Energy Services | Greene County (PA) | IMG Midstream | Industrywide Issues | Pennsylvania

New Marcellus Gas-Fired Electric Plant Proposed for Greene County
December 17, 2013December 17, 2013

Another new natural gas-fired electric generating plant may be on the way in PA courtesy of cheap, abundant Marcellus Shale gas. Bayles Energy LLC, a subsidiary of IMG Midstream, has proposed building a 20-megawatt plant in Greene Township in (yes) Greene County, PA. The new plant would generate enough electricity to serve 13,000 homes on the area.

More details…
Read More “New Marcellus Gas-Fired Electric Plant Proposed for Greene County”
1st NRG | Energy Companies | Utica Shale

1st NRG Again Declares Their Intention to Drill the Utica, Maybe
December 17, 2013December 17, 2013

Something MDN finds amusing. Every now and again 1st NRG, a Denver-based exploration & production or “drilling” company pokes it’s head up and issues a press release to say in essence, “We’re still here, we still have 7,000 acres of leases in the Utica Shale, and we really really really really are gonna drill that acreage. Soon. Someday. As soon as we get the money. Really soon now.” We’ve chronicled this trawling-for-investors-by-press-release routine since October 2012 (see 1st NRG category on MDN for our previous stories).

Here’s the latest $99 press release that declares 1st NRG’s undying love for the Utica, along with their undying love for Wyoming’s Powder River Basin:
Read More “1st NRG Again Declares Their Intention to Drill the Utica, Maybe”
Industrywide Issues | Mercer County | Noise | Pennsylvania | Supply Chain

Quieter Drilling, Compressor Plants on the Way in the Northeast
December 17, 2013December 17, 2013

Noise Solutions Inc., headquartered in Alberta, Canada, makes buildings, walls and enclosures that keep the noise down. They like to say they make communities quieter, and they’ve been doing it since 1997. One of the primary markets for Noise Solutions is the oil and gas industry. They recently announced an expansion into the Marcellus and Utica Shale region, setting up a new facility in Sharon (Mercer County), PA. Noise Solutions has already hired 30 employees at the new facility with plans to have 125-200 employees hired in the next three years. This is great news for the Marcellus/Utica drilling industry and for Mercer County.

Noise Solutions’ recent announcement:
Read More “Quieter Drilling, Compressor Plants on the Way in the Northeast”
Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Dec 17, 2013
December 17, 2013December 17, 2013

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: Tue, Dec 17, 2013”
Energy Companies | Hydraulic Fracturing | Industrywide Issues | Litigation | Pennsylvania | Susquehanna County | WPX Energy

WPX Decides to Let Franklin Forks Families Keep Water Tanks
December 16, 2013December 16, 2013

WPX Energy has made not only a smart move, but is doing the right thing. MDN told you last week about the three families in Franklin Forks, PA who say nearby Marcellus drilling by WPX Energy caused methane to migrate into their water wells (see WPX to Make 2nd Attempt at Removing Water Tanks in Franklin Twp). The PA Dept. of Environmental Protection investigated (for years) and found the methane in the families’ wells is naturally occurring and not from WPX’s work. So WPX tried to remove the water tanks (“buffaloes”) they voluntarily provided to the families.

One family let them remove the water buffalo, the other two illegally resisted, so WPX was scheduled to come back today with warrants in hand to remove them. But last week WPX had a change of heart and said in essence, “Go ahead and keep the water buffaloes. We’ll donate them to you if you want them that badly.” To which we say, it was not only a smart PR move but a nice thing, the “right thing,” to do. It immediately denies the anti-drilling crazies more parading in front of TV cameras to talk about how heartless the drilling industry is. Here’s the latest on the Franklin Forks saga…
Read More “WPX Decides to Let Franklin Forks Families Keep Water Tanks”
American Energy Partners | Energy Companies | Utica Shale

McClendon Plan to Raise Additional $2B in “Unit” Offering
December 16, 2013December 16, 2013

Investors who want a piece of Aubrey McClendon’s plans to develop the Utica Shale are about to get a chance. On Friday, the Wall Street Journal and other media outlets disclosed that McClendon’s new company, American Energy Capital Partners, has filed with the Securities and Exchange Commission to sell up to 100 million “units” (something like a stock) for $20 per unit in an effort to raise up to $2 billion. McClendon plans to use the money to “develop or buy onshore oil and natural gas properties in the United States.” We imagine most of that will be focused on the Utica Shale where McClendon continues to focus his time and energy (see Exclusive: McClendon Buys 24K Acres of SWEPI Leases in OH Utica).

AECP has already raised $1.7 billion (see McClendon Gets a Little Help ($1.7B) from His Friends in OH Utica). Word of advice to Aubrey: Don’t sell any of those units to Carl Icahn…
Read More “McClendon Plan to Raise Additional $2B in “Unit” Offering”
Allegheny County | Energy Companies | Lease & Royalty Payments | Pennsylvania | Range Resources Corp

Range’s Big Money Deal to Drill Under Deer Lakes Park in SW PA
December 16, 2013December 16, 2013

MDN recently told you that Allegheny County, PA legislators, most of them Democrats, abandoned their fellow Dems to vote down a ban on drilling under county parks 9-2 (see Allegheny County (PA) Council Votes Down Drill Ban for Parks). We now know why. They all didn’t suddenly turn into pro-drillers–too many wacko constituents on their left to do that. No dear friends, just follow the money.

The signing bonus offered by Range Resources to legislators to drill under Deer Lakes Park is $3.5 million. But that’s peanuts if the drilling goes forward and if there’s as much gas under the park as Range believes there is. With a royalty rate of 17%, the county stands to make as much as a mind-blowing $70 million from that single county park! And of course the legislators will get to decide how all that cashola gets spent. It’s like putting a 10-ton carrot in front of Bugs Bunny. Just too much to resist…
Read More “Range’s Big Money Deal to Drill Under Deer Lakes Park in SW PA”
Anti-Drilling/Fossil Fuel | Chautauqua County | Electrical Generation | Industrywide Issues | New York

Dunkirk, NY Electric Plant Saved – Converting from Coal to NatGas
December 16, 2013December 16, 2013

Looks like the good residents in Dunkirk, NY (near Buffalo) have dodged a major tax bullet. Last week MDN told you about hypocritical anti-drillers who oppose converting coal-powered electric plants in both Ithaca and Dunkirk into being powered by natural gas–simply because they don’t like fossil fuels (see Anti-Drillers Oppose Converting 2 NY Electric Plants to NatGas). As we pointed out, the plants in Dunkirk and Ithaca provide something like 40% of the tax revenue for the local towns and schools where they are located. Closing either plant would devastate that community and force some residents to leave after taxes skyrocket. The Dunkirk plant has been saved.

In a strange twist of fate, Gov. Andrew “the fracking ditherer” Cuomo slogged through three feet of snow in Dunkirk to crow that a deal has been reached to keep the plant open and convert it from burning coal to burning natural gas. Oh, the plant will burn natural gas fracked in other states and pipelined to NY. Ironic, no? Here’s the story…
Read More “Dunkirk, NY Electric Plant Saved – Converting from Coal to NatGas”