Marcellus Drilling News

Energy Companies | Southwestern Energy

Southwestern Energy’s 2013 Plan: Double Marcellus Production
December 19, 2012December 19, 2012

Southwestern Energy yesterday issued their 2013 spending plan and best estimates for the production/results they believe they will achieve in 2013. Of interest to MDN is their plans for the Marcellus. Southwestern says they will more than double natural gas production in the Marcellus—from 63-65 billion cubic feet this year to 160-165 Bcf next year. They’re also increasing their budget for Marcellus drilling by $165 million—to $705 million.

Here’s the entire announcement from Southwestern, which includes all of their operational areas (not just the Marcellus):

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Hydraulic Fracturing | Industrywide Issues

Esquire Magazine: Thank You for Fracking
December 19, 2012December 19, 2012

A surprisingly balanced human interest article written about the issue of hydraulic fracturing has just appeared in Esquire magazine (yes, that Esquire). The story takes a look at Curt Coccodrilli, who used to work for Bonnie Raitt before she fired him because he supports fracking. Must be she didn’t want to give them something to talk about. (Yeah, you saw that groaner coming!)

The article begins this way:

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Best of the Rest

Marcellus & Utica Shale Story Links: Wed, Dec 19, 2012
December 19, 2012December 19, 2012

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, Dec 19, 2012”
Energy Companies | Gulfport Energy | Lease & Royalty Payments | Ohio | Rhino Resource Partners | Statewide OH

Gulfport Adds Another 30K Utica Net Acres, Pays $10K/Acre
December 18, 2012December 18, 2012

Gulfport Energy announced yesterday they have purchased another 30,000 Utica Shale acres in eastern Ohio for $300 million—or $10,000 per acre. That brings Gulfport’s grand total to 137,000 gross Utica Shale acres (99,000 net acres). Gulfport bought the acreage from its Utica Shale joint venture partner Wexford Capital. Perhaps a better way of phrasing it: Gulfport increased its ownership interest in acreage in which they’ve already invested.

Gulfport and Wexford, along with Rhino Resources, have previously invested in both two and three-way Utica Shale jv’s together (see this MDN story). So far, Gulfport has drilled the top producing wells in Ohio (see this MDN story for the secret to their success).

Read More “Gulfport Adds Another 30K Utica Net Acres, Pays $10K/Acre”
BP | Energy Companies | Industrywide Issues | Ohio | Pipelines | Processing Plants | Trumbull County | Utica Shale

BP: Trumbull County Needs More Pipelines, Processing Plants
December 18, 2012December 18, 2012

Yesterday at a press conference in Youngstown, OH, BP announced plans to move into a new office and warehouse space in the Youngstown Commerce Park (see this MDN story). At the same event, BP officials spoke about their concerns that pipeline and processing plant infrastructure in Trumbull and surrounding counties may be quickly overwhelmed once BP’s drilling program is in full swing.

What do BP’s public comments mean? More pipelines and processing plants are likely on the way in Trumbull County:

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BP | Economic Impact | Energy Companies | Industrywide Issues | Mahoning County | Ohio | Trumbull County | Utica Shale

BP Moves into New Utica Shale Digs, Drilling Starts January
December 18, 2012December 18, 2012

Important Update: BP will not start drilling test wells until April 2013, not January as indicated in the headline (and as quoted in the story below). The news source quoted by MDN was inaccurate! Many thanks (and a hat tip) to MDN friend Andrea Wood, Publisher of the Youngstown Business Journal, for taking the time to notify us of the error.

BP announced yesterday they have begun moving into the company’s new “Utica Operations Center,” a 5,000 square foot office space with 38,000 sq ft of warehouse/storage space located in the Youngstown Commerce Park in North Jackson (Mahoning County), Ohio. BP aggressively leased Ohio Utica Shale acreage during 2012—signing up some 100,000 acres of leases this year. Of the Ohio acreage leased by BP, the vast majority (84,000 acres) is in Trumbull County, close to the new office space.

Ohio landowners who signed with BP, and businesses interested in supplying BP with products and services, will be interested to know BP plans to start drilling their first Utica Shale test wells in January 2013 (more details below).

Read More “BP Moves into New Utica Shale Digs, Drilling Starts January”
Energy Companies | EV Energy Partners | Lease & Royalty Payments | Utica Shale

EV Energy Partners About to Shed Utica Acreage
December 18, 2012December 18, 2012

Landowners in the Utica Shale who signed with EV Energy Partners, take note: Your lease may soon be reassigned.

An article on the Seeking Alpha website takes a close look at EV Energy Partners (EVEP) and their large Utica Shale investments. EVEP is structured as a “master limited partnership” or MLP. The focus for an MLP is distributing (via quarterly payments called distributions) most of the profit made by the company to its partners/shareholders. Because of its MLP structure, long-term development of “speculative” plays like the Utica is not in line with the company’s mission, so EVEP is looking to shed most of it’s Utica Shale leases—and they’re doing it soon…

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Anti-Drilling/Fossil Fuel | Hydraulic Fracturing | Industrywide Issues

Forbes Exposes Who’s Behind Newest Anti-Drilling Group
December 18, 2012December 18, 2012

The Forbes magazine website pries open the lid to reveal who’s really behind a new organization called Physicians, Scientists and Engineers for Healthy Energy (PSEHE). PSEHE was formed specifically to oppose shale drilling. And guess who’s behind it? The Ithaca, NY-based Park Foundation (funder of Gasland, Earthworks, Earth Justice and other rabidly anti-drilling causes), and Cornell professor Tony Ingraffea (co-author of a discredited anti-fracking study). In other words, PSEHE is a sham—a useful tool for mainstream media to use in creating the illusion that scores of “smart people” are opposed to fracking.

The Forbes exposé begins this way:

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Hydraulic Fracturing | Industrywide Issues | Maryland | Regulation | Statewide MD

Maryland Shale Commission Misses Second Deadline for Report
December 18, 2012December 18, 2012

The “Keystone Cops” Marcellus Shale Advisory Commission appointed by Maryland Gov. Martin O’Malley to study natural gas drilling and produce a set of best practices for hydraulic fracturing will miss their second deadline to produce a draft report. The first deadline was August 1, 2012 (see this MDN story). At that time, they said “we’ll get ‘er done by end of the year.” Oops. That won’t happen either. Now they’re saying they need extra time and will produce the report “sometime this spring.” Anyone up for a betting pool on when?

Here’s the latest (sad) news from Maryland:

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Energy Services | Fayette County | Industrywide Issues | Laurel Mountain Midstream | Pennsylvania | Violence | Williams

Farmer Does Jail Time After Confrontation with Pipeline Co
December 18, 2012December 18, 2012

A western PA cattle farmer claims workers from Williams/Laurel Mountain Midstream pumped acid mine drainage onto his farm and damaged his fences while drilling a ditch for a pipeline across his property. The farmer was ordered to stay away from the workers last month after confronting them about damage done to his fences. He violated a court order and confronted them a second time when he saw what he thought was acid mine drainage being pumped onto his land from the ditches being dug. This time he got four days in the local clink.

Here’s what we know of the story:

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Best of the Rest

Marcellus & Utica Shale Story Links: Tue, Dec 18, 2012
December 18, 2012December 18, 2012

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 18, 2012”
Allegheny County | CONSOL Energy | Energy Companies | EQT Corp | Lease & Royalty Payments | Pennsylvania

Pittsburgh Airport Leases Land to CONSOL
December 17, 2012July 3, 2018

We have to wonder, was the fix in at the Pittsburgh Airport? MDN told you two weeks ago about the opening for two bids to drill on and under property owned by the Allgheny County Airport Authority (see this MDN story). EQT offered more than twice the per-acre signing bonus of CONSOL Energy. EQT’s bid to drill on 9,263 acres was $44 million!

On Friday, the Airport Authority announced that after two weeks of “very, very careful review” it has accepted CONSOL’s bid of $20.8 million as the representing the “best value.” Huh?

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Belmont County | Energy Companies | Gulfport Energy | Harrison County | Ohio

The Secret to Gulfport’s OH Utica Drilling Success
December 17, 2012December 17, 2012

An excellent article on the Youngstown Business Journal website from Saturday delves into the question of why Gulfport Energy has (so far) turned in the most impressive results of all Utica Shale drilling in Ohio (see this MDN story for background on their success). Gulfport CEO Jim Palms credits better science and a little of luck for their astonishing success.

The real secret as to why Gulfport’s wells in Harrison and Belmont counties are doing so much better than counties farther north, like Carroll and Columbiana? It has to do with pressure…

Read More “The Secret to Gulfport’s OH Utica Drilling Success”
Chesapeake Energy | Energy Companies

Chesapeake Offers Buyout to 275 Older Employees
December 17, 2012December 17, 2012

Calling it a potential “benefit” for longer-term employees to cash in on their years of service, Chesapeake Energy on Friday announced a “voluntary separation program” to get rid of 275 older employees by February 2013. At least that’s MDN’s understanding after reading the official company announcement:

Read More “Chesapeake Offers Buyout to 275 Older Employees”
Industrywide Issues | Ohio | Portage County | Seismic Testing | Utica Shale

More Drilling on the Way in Portage County, OH?
December 17, 2012December 17, 2012

There hasn’t been much in the way of Utica Shale permits or drilling in Portage County, Ohio—yet. At least compared to other Ohio counties. At last official tally, Portage has seen 14 permits so far (see this MDN story).

That may about to change. Why would we think so? Because of orange cables strung along roadways throughout the county…

Read More “More Drilling on the Way in Portage County, OH?”
New York | Statewide NY

NY Officials Make Plans to Use More Natural Gas
December 17, 2012December 17, 2012

MDN friend Andy Leahy, who writes excellent posts on his NYShaleGasNow.com blog, has done it again. He’s sniffed out documentation from the New York Public Service Commission which maps out a plan for the state to use more natural gas. You read that right! While NY is in the throes of debating whether or not to allow fracking, state officials are making official plans to use more of the very thing fracking would produce—abundantly and cheaply.

Andy points out the following on this quiet-but-profound policy shift:

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