Marcellus Drilling News

Blue Ridge Mtn Res/Magnum Hunter | Energy Companies

Magnun Hunter Resources – Delays in the Marcellus/Utica
April 4, 2013April 4, 2013

What’s going on with Magnum Hunter Resources (MHR)? That’s the question asked and answered by Seeking Alpha blogger Mike Maher in an article posted today. The article is a mea culpa and explanation as to why he was wrong about MHR’s stock price. Back in November he predicted the stock, then at $3.92 per share, would soon take off. Today? It’s trading almost exactly at the same $3.92. So what happened?

MDN is not an investment blog, although a number of individual investors and investment firms do subscribe and read. Our interest in Maher’s article is not about MHR’s stock performance, but rather his discussion of MHR’s operations in the Marcellus and Utica Shale. He brings some good new information to light—a brief status report about MHR’s activities (or lack thereof) in our neck of the woods…

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Commodity Price | Industrywide Issues

One Year Later: NatGas Inventories & Rig Counts Down, Price Up 2X
April 4, 2013April 4, 2013

MDN’s favorite Seeking Alpha blogger and energy analyst, Richard Zeits, has posted a top-notch analysis about the price of natural gas and where he believes it’s headed—and why. The article is extensive and well worth the time to read it if you care about the price of natural gas. He points out “what a difference a year makes,” noting that in just one year natural gas inventory surpluses are gone (even contracting), rig counts are at their lowest numbers in decades, and the price of natural gas has doubled from a low of $2 MMBtu to near $4 MMBtu. Surprisingly, he notes that recent supply numbers for natural gas show a slight contraction overall, despite the huge expansion of production in the Marcellus, Utica and Bakken.

Zeits says the fundaments for natural gas trading look very good. He makes the following points in the article:

Read More “One Year Later: NatGas Inventories & Rig Counts Down, Price Up 2X”
Industrywide Issues | Pennsylvania | Statewide PA | Taxation

PA PUC Launches New Interactive Website with Impact Fee Details
April 4, 2013April 4, 2013

The Pennsylvania Public Utility Commission, charged under Act 13 with the assessment and collection of shale drilling “impact fees,” released a new interactive website yesterday that “allows users to better examine information related to the collection and distribution of the state’s unconventional gas well Impact Fee.” MDN checked it out and is impressed. Lots of useful charts and graphs detailing who drilled the most, who paid the most, and where/how the money from impact fees has been spent.

Here’s the press release announcing the site and it’s purpose:

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Allegheny County | Meetings | Pennsylvania

NAPE Takes Shape – Speakers Announced for April 10 Program
April 4, 2013April 4, 2013

For anyone in the orbit of Pittsburgh, or for those already planning to attend, MDN editor Jim Willis will attend the North American Prospect Expo (NAPE) in Pittsburgh next week, April 10-12. This is the first time NAPE has come to Pittsburgh—the big annual event is held in Houston each year. The Pittsburgh event is called NAPE East and promises to be a great show. Please stop by the Shale Daily booth (# 205) and say hello to Jim!

Yesterday, NAPE released their lineup of “distinguished speakers and panelists” speaking during the Business Conference portion of the event, held on the first day, April 10 (see below). Here’s the press release about next week’s event and list of speakers for the first day:

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Allegheny County | Pennsylvania | Statewide PA

Winners Announced for Northeast Oil & Gas Awards 2012
April 4, 2013April 4, 2013

Launched in 2012, Oil & Gas Awards has just held its first regional awards for the northeastern United States, the “Northeast Oil & Gas Awards” ceremony, held in Pittsburgh on March 14 at the Westin Convention Center. Outgoing PA DEP Secretary Michael Krancer was the guest of honor.

In all, 19 different awards were handed out in categories ranging from law firm of the year to drilling & well services company of the year (and many others). Here’s the complete list of winners, and more information about the awards:

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Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Apr 4, 2013
April 4, 2013April 4, 2013

The “best of the rest” – stories that caught MDN’s eye that you may be interested in reading:

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Industrywide Issues | Ohio | Research | Statewide OH | Utica Shale

OOGA Report on Ohio Utica Drilling for 2012 – Charts & Maps
April 3, 2013April 3, 2013

At the recent winter meeting of the Ohio Oil and Gas Association, OOGA presented the DeBrosse Memorial Report: 2012 Oil and Gas Activity in Ohio. Chock-full of interesting charts and maps showing who drilled wells in Ohio, where they drilled them and how far (distance) the wells were drilled, the report (full copy embedded below) is a must-read if you have an interest in the Utica Shale.

A few highlights:

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East Resources | Energy Companies

East Resources Responds to Unflattering WSJ Article on Violations
April 3, 2013April 3, 2013

On Monday, the Wall Street Journal published a story titled “As Big Drillers Move In, Safety Goes Up.” The premise and tone of the article is that in the early days of Marcellus Shale drilling, there were many smaller, less-experienced companies drilling in the Marcellus–companies not as safety conscious and careful as the big boys. Now that the big boys have arrived, safey and accidents are down–way down.

The opening few paragraphs are none too flattering to one company in particular–East Resources. East is still around, although they sold their Marcellus operation to Shell in 2010. The WSJ article opens this way:

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Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Statewide PA

GASLAND vs FrackNation: Josh Fox Refuses to Debate Phelim McAleer
April 3, 2013April 3, 2013

The Delaware Valley Marcellus Association (DVMA) is sponsoring a screening of the excellent documentary film FrackNation at the Bryn Mawr Film Institute on April 10 (Philadelphia, see this calendar announcement for details). As part of the screening event, DVMA invited Josh Fox, creator/producer/director of the documentary GASLAND to attend the screening and debate FrackNation creator Phelim McAleer. Apparently Fox is a coward and not willing to defend his work–he refuses to respond or even acknowledge the invitation from DVMA.

Yesterday, the DVMA issued the following press release/open letter to Fox:

Read More “GASLAND vs FrackNation: Josh Fox Refuses to Debate Phelim McAleer”
Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues | Ohio | Statewide OH

“Faith” Group Lies About New Sustainable Shale Center, Fracking
April 3, 2013April 3, 2013

MDN finds it particularly repugnant and hypocritical for so-called “faith groups” to use religion to jusify their twisted anti-fossil fuel philosophies. Shame on them for misusing religion in such a way. It’s disgusting.

One such disgusting group, Faith Communities Together for Frack Awareness (FaCT), issued the following press release yesterday, questioning the creation of the Center for Sustainable Shale Development and in general denigrating the miracle of hydraulic fracturing:

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Hydraulic Fracturing | Industrywide Issues | New York | Regulation | Statewide NY

JLCNY (Politely) Tells Cuomo to Wise Up and Look at PA
April 3, 2013April 3, 2013

The president of the Joint Landowners Coalition of New York (and MDN friend) Dan Fitzsimmons published an op-ed in yesterday’s Binghamton Press & Sun-Bulletin. Without naming names (cough *Cuomo* cough), Dan says “New Yorkers” should look to our neighbors just across the border to the south for examples of what can happen when safe natural gas drilling is allowed. He provides some startling facts and figures…

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Chesapeake Energy | Energy Companies

DOI Slaps Chesapeake with $765K Fine for Underpaying Royalties
April 3, 2013April 3, 2013

The U.S. Dept. of Interior (DOI) has accused Chesapeake Energy of underpaying oil and gas royalties due to DOI for drilling on federal lands and has slapped Chessy with a $765,000 fine. Chessy says there has been no intentional shorting of royalty payments and if you add up the total amount in question, it’s less than $500–little more than a rounding error on the purchase of paperclips for DOI.

DOI says Chessy has a history of “inaccurate reporting” when it comes to royalty reporting:
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Energy Companies | Rex Energy

Rex Energy Goes to the Bank, Walks Out with $85M
April 3, 2013April 3, 2013

Rex Energy, an independent oil and gas exploration and production (E&P) company headquartered in State College, PA focuses their drilling on the Marcellus/Utica Shale region. Rex announced on Monday they’ve expanded their credit line at the bank–from $240 million in borrowing capacity to $325 million (an $85 million increase). What does it mean?…

Read More “Rex Energy Goes to the Bank, Walks Out with $85M”
Chesapeake Energy | Energy Companies | Ohio | Statewide OH | Utica Shale

Chesapeake Innovates New Way to Move Utica Rigs Twice as Fast
April 3, 2013April 3, 2013

Chesapeake Energy publishes a quarterly newsletter (more like a magazine) called The Play. The latest issue, Winter 2013 (released earlier this year, full issue embedded below) contains two interesting and important stories that relate to the Utica Shale. The feature story starting on page 3, “Poised for Success,” focuses on Chesapeake’s Ohio Utica Shale program. The article says Chessy’s previously drilled Utica wells should be online starting in February since new pipelines to transport liquids for processing have recently been installed. The article also says Chessy expects they will eventually drill around 13,000 wells in the Ohio Utica on their 1.6 million leased acres.

Read More “Chesapeake Innovates New Way to Move Utica Rigs Twice as Fast”
Industrywide Issues | Maryland | Regulation | Statewide MD

Landmen Operating in Maryland Will Soon Have to Regi$ter
April 3, 2013April 3, 2013

Maryland State Sen. George Edwards (Republican) has introduced a bill that will make it crime for anyone to negotiate mineral leases with landowners unless they are first registered with the state as a landman. The same bill has already passed the state House of Delegates with a 135-0 vote in March. In other words, if you’re a landman operating in Maryland, get ready to pay…
Read More “Landmen Operating in Maryland Will Soon Have to Regi$ter”
Air Quality | Industrywide Issues | Regulation

EPA Keeps Messing with Drillers, Tweaks Regulations Yet Again
April 3, 2013April 3, 2013

The federal Environmental Protection Agency (EPA) is once again interferring in the states responsibilities to regulate oil and gas drilling. The always excellent ShaleEnergyLawBlog, written by the law firm Babst Calland, notes two recent changes to regulations issued by the EPA dealing with greenhouse gas reporting and storage tanks:

Read More “EPA Keeps Messing with Drillers, Tweaks Regulations Yet Again”