Marcellus Drilling News

Chesapeake Energy | Energy Companies

Chesapeake 2012 Update: Revenue Down $940M, Gas Production Up 9%
February 22, 2013February 22, 2013

Chesapeake Energy issued it’s fourth quarter 2012 and full year 2012 financial and operational update yesterday (full report below). This is a big deal because Chesapeake is the #2 natural gas producer in the U.S. behind Exxon Mobil. The company is also the biggest driller in the Utica Shale and one of the biggest in the Marcellus Shale.

What does the update show? The company lost $940 million in 2012, which was expected. In early 2012 Chesapeake made noise about curtailing output until the commodity price of natural gas went up. So much for that: Production increased 9% from the end of 2011 to the end of 2012—to an average of 3.9 billion cubic feet of gas per day.

Read More “Chesapeake 2012 Update: Revenue Down $940M, Gas Production Up 9%”
Chesapeake Energy | Energy Companies | Marshall County | Ohio County | West Virginia

Chesapeake Energy Strikes Oil Again, This Time in WV
February 22, 2013February 22, 2013

Chesapeake Energy announced in July 2011, to great fanfare and shouts of joy, that it had hit oil in the Ohio Utica Shale (see Major Discovery – Chesapeake Energy Strikes Oil (and Gas) in Ohio’s Utica Shale). Although early results were promising, by the end of 2012 Chesapeake admitted it had “misjudged” the Utica Shale fairway—the best places to drill—and their early enthusiasm seems to have subsided (see Chesapeake Admits Misjudging Ohio Utica Sweet Spot).

But perhaps Chesapeake has reason to smile again. Chesapeake has hit oil—in the West Virginia Marcellus Shale:

Read More “Chesapeake Energy Strikes Oil Again, This Time in WV”
Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake Still Loves the OH Utica Shale – 2012 Year in Review
February 22, 2013February 22, 2013

Estimating that it will recover 5 to 10 billion cubic feet of natural gas equivalents from each well drilled in the Ohio Utica Shale, Chesapeake Energy says they still love the Ohio Utica Shale, even if oil isn’t a big part of the picture.

Chesapeake held an earnings call yesterday to discuss 2012 numbers with analysts. Akron Beacon Journal reporter Bob Downing listened in:

Read More “Chesapeake Still Loves the OH Utica Shale – 2012 Year in Review”
Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Regulation | Statewide PA

PA DEP Sec. Krancer Faces Tough Questions from Senators
February 22, 2013February 22, 2013

MDN loves Pennsylvania Dept. of Environment Protection Sec. Michael Krancer—primarily because he doesn’t take any guff from politically posturing Democrats. He also happens to be very smart and very funny. Krancer faced a grilling yesterday during budget hearings from (some) PA senators who wanted to score political points. Krancer fired right back when challenged. He also refused to answer questions about his religious beliefs on global warming. It’s dangerous to go against GW orthodoxy. You’re branded a heretic and imbecile if you’re not a Kool-Aid drinker of the GW mythology.

Below is some of the back and forth from yesterday’s budget grilling of Krancer. He addresses the topic of Marcellus Shale drilling and the DEP’s ability to regulate it. He also answers an interesting question about “asexual behavior” in fish…

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EMG | Energy Services | MarkWest Energy

MarkWest: We Just Banked $450M from EMG, Another $2.8B Available
February 22, 2013February 22, 2013

A couple of weeks ago MDN told you the news that MarkWest Energy and Utica Shale joint venture partner EMG had struck a deal to infuse extra cash into their Utica projects which seemed to be running low on money (see Cash Runs Low – MarkWest Floats $150M Loan in Utica Midstream JV). MarkWest issued another press release yesterday to say the deal with EMG is now done, and an extra $450 million will soon be in the bank from EMG to keep the Utica projects going.

Also in yesterday’s announcement, MarkWest says they’ve raised $1.5 billion over the past three months from “debt and equity transactions” including the $450 from EMG; they still have an untapped $1.2 billion line of credit; and they have the ability to issue $600 million in common stock, should they need to (a $3.3 billion pile of cash from all sources). Translation: MarkWest seems to be allaying investor concerns about cash flow problems for their active projects. “No overextension happening here,” seems to be the mantra.

Read More “MarkWest: We Just Banked $450M from EMG, Another $2.8B Available”
Industrywide Issues | NG Vehicles | Statewide WV | West Virginia

WV NatGas Vehicle Task Force Releases 17 Recommendations
February 22, 2013February 22, 2013

In June 2012, then acting (now newly elected) WV Gov. Earl Ray Tomblin appointed a 21-member Natural Gas Vehicle Task Force with the mission of providing a road map for converting at least part of the state’s fleet of vehicles to run on natural gas (see WV Task Force Investigates CNG for State Vehicles).

The task force met, talked, researched and did their job. Yesterday, Gov. Tomblin released a 38-page report containing the task force’s recommendations along with loads of other useful information including helpful maps (a full copy of the report is embedded below). Here’s a quick list of the task force’s 17 recommendations:

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American GTL Energy | Energy Services | Industrywide Issues | Pennsylvania | Processing Plants | Reserve Environmental Services | Statewide PA

Shale Wastewater Operator Proposes Marcellus Gas-to-Liquids Plant
February 22, 2013February 22, 2013

American GTL Energy wants to build a gas-to-liquids (GTL) plant in the Pennsylvania Marcellus Shale to convert methane (“dry gas”) into diesel fuel. Such a plant, if built, would require about $1 billion of investment—so American GTL is trying to catch the interest of companies like Exxon Mobil—companies with deep pockets.

Read More “Shale Wastewater Operator Proposes Marcellus Gas-to-Liquids Plant”
Economic Impact | Energy Companies | EnerVest | Gastar Exploration | Industrywide Issues | PetroEdge | Statewide WV | West Virginia

Drilling Company CEOs Talk up WV Marcellus Shale at IOGA Meeting
February 22, 2013February 22, 2013

The heads of several drilling companies spoke this week at the West Virginia Independent Oil and Gas Association (WV IOGA) in Charleston. They gushed with praise for the Marcellus Shale in West Virginia.

Among the speakers were the CEOs of Gastar, PetroEdge and EnerVest. A few of their comments:

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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Feb 22, 2013
February 22, 2013February 22, 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: Fri, Feb 22, 2013”
Anti-Drilling/Fossil Fuel | Crime | Energy Services | GreenHunter Resources | Industrywide Issues | Ohio | Trucking | Washington County (OH) | Wastewater

Protesters Get Violent, Shut Down OH Frack Water Plant
February 21, 2013February 21, 2013

GreenHunter Energy operates a bulk storage and shipping facility near New Matamoras (Washington County), Ohio for salt water (“brine”) that comes from shale wells long after they are drilled and fracked. Brine is naturally occurring water from deep below the ground—water without chemicals from fracking—it just contains a lot of minerals. That fact doesn’t seem to matter to some obtuse protesters.

Yesterday, a group of 100 or so protesters, organized by an extremist group called Appalachia Resist!, stormed the New Matamoras brine facility and shut it down. They engaged in criminal acts by plugging the toilets, stealing keys and in general terrorizing the employees at the facility. Ten of the protesters were arrested (their names, ages and home cities are listed below). More will be charged once police are done reviewing video tapes of the incident.

You may be interested to know that almost all of the people arrested were from other states—not even Ohio residents. GreenHunter is pressing charges, which includes felony counts and possibly charges under the Anti-Terrorism Act.

Read More “Protesters Get Violent, Shut Down OH Frack Water Plant”
Chesapeake Energy | Energy Companies

Chesapeake Probe Clears McClendon of Any Financial Misconduct
February 21, 2013February 21, 2013

Chesapeake Energy’s board of directors issued a statement yesterday stating their independent internal probe into the financial dealings of current and soon-to-be-former CEO Aubrey McClendon is now complete. The verdict? He’s not guilty of any financial misconduct. The board also says the company is not guilty of antitrust violations in the case of Michigan’s auction of oil and gas leases in 2010.

This is good news for McClendon. However, he’s not out the woods just yet. There are still Internal Revenue Service (IRS) and Securities and Exchange Commission (SEC) investigations in progress.

Read More “Chesapeake Probe Clears McClendon of Any Financial Misconduct”
Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

NY Landowner Group Asks Members to Flood Cuomo with Letters/Calls
February 21, 2013February 21, 2013

The Joint Landowners Coalition of New York (JLCNY) is putting out the word to its 77,000 members to contact Gov. Andrew Cuomo and let him know that a) they vote, and b) they won’t forget if he doesn’t allow fracking to move forward now, by the end of February. They’re encouraging members to print out and send him a couple of form letters (see them below), as well as call the governor’s office—repeatedly. This is a “numbers game” now according the JLCNY. They want to roar so Gov. Ditherer hears it loud and clear.

Here’s the email MDN received from the JLCNY announcing their latest initiative:

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Industrywide Issues | Pennsylvania | Warren County | Wastewater

NW PA Frack Wastewater Injection Well Begins Operation
February 21, 2013February 21, 2013

A new fracking wastewater injection well in northwest Pennsylvania has just opened for business. Bear Lake Properties in Warren County (near the New York border) is now accepting Marcellus Shale wastewater, although for now they’re only accepting the wastewater produced from their own drilling activities.

Read More “NW PA Frack Wastewater Injection Well Begins Operation”
Energy Companies | EXCO Resources

EXCO Resources 2012 Update: Marcellus Production Up 73%
February 21, 2013February 21, 2013

EXCO Resources reported their fourth quarter and full 2012 numbers yesterday. As part of the update, they also included the following brief update on their Marcellus Shale drilling activities for last year:

Read More “EXCO Resources 2012 Update: Marcellus Production Up 73%”
Energy Companies | Southwestern Energy

Southwestern Energy’s 2012 Report: Marcellus Production Up 130%
February 21, 2013February 21, 2013

Southwestern Energy, a major Marcellus Shale driller, issued its 2012 financial and operational update yesterday. Among the highlights: Southwestern spent $507 million on their Marcellus drilling program in 2012, which included drilling and putting into operation 92 wells. Gross production from the company’s operated wells in the Marcellus increased from 133 MMcf per day at the beginning of 2012 to approximately 300 MMcf per day by year-end, and total net production was 53.6 Bcf in 2012, up 130% from 23.4 Bcf in 2011. It’s full speed ahead for Southwestern in the Marcellus Shale.

Here’s portions from yesterday’s update that are relevant to Southwestern’s Marcellus operations:

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Energy Companies | Gastar Exploration | Marshall County | West Virginia

Gastar’s 2012 Update: 38 WV Marcellus Wells Now in Production
February 21, 2013February 21, 2013

Today Gastar released 2012 numbers and an operational update for their drilling activities in the Marcellus Shale. Among the highlights: Gastar’s proved reserves increased 51% in 2012. By the end of last year, Gastar was operating 38 Marcellus Shale wells—all of them in the wet gas region of Marshall County, WV.

Here’s the rundown on the numbers, including an operational update, for Gastar’s Marcellus activities in 2012:

Read More “Gastar’s 2012 Update: 38 WV Marcellus Wells Now in Production”