Marcellus Drilling News

Dominion Energy | Energy Services

Dominion 3Q12 Update: Profits Down from Warm 2012 Winter
October 26, 2012October 26, 2012

Dominion is a huge utility and midstream (pipeline) company with customers and operations throughout the Marcellus and Utica Shale region. Yesterday Dominion issued their third quarter financials and it was not a pretty picture. Earnings for 3Q12 were down nearly half of what they were from 3Q11. Ouch. The reason? Dominion puts a lot of the blame on a hangover from a warm winter.

There’s not much in the way comment on their activities in the Marcellus in their statement below (they do mention the new Natrium, WV plant and a few other items). MDN includes their 3Q12 financial update because they are an important player in the Marcellus and Utica Shale and the overall health of the company is important to the industry.

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Energy Companies | Noble Energy

Noble Energy 3Q12 Update: Marcellus Production Up 38%
October 26, 2012October 26, 2012

Earnings reports for the third quarter continue to roll out. Yesterday, Noble Energy provided their 3Q12 update. Noble is a large company with operations in a number of countries. Here in the U.S., Noble is actively drilling in the Marcellus Shale in West Virginia. They also have a joint venture in the Marcellus in Pennsylvania. Noble reports their Marcellus production grew to 102 million cubic feet per day in the third quarter, an increase of 38% over last quarter. They also report their first two wet gas wells have started to produce natural gas liquids and are doing better than expected.

Here’s the relevant portion of the Noble announcement that focuses on the Marcellus:

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Pennsylvania | Statewide PA

New Book Released for PA Oil & Gas Law
October 26, 2012October 26, 2012

Three attorneys (two of them from Pennsylvania) with extensive experience in oil and gas law teamed up and wrote a just-released, first of its kind book, titled: Pennsylvania Oil and Gas Law and Practice. One of the PA authors, J.C. “Jay” Wilkinson, and the publisher, George T. Bisel Company, issued the following press release about the new book:

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Best of the Rest

Marcellus & Utica Shale Story Links: Fri, Oct 26, 2012
October 26, 2012October 26, 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: Fri, Oct 26, 2012”
Energy Companies | Range Resources Corp

Range Resources 3Q12: 24 New Wells in ‘Super-Rich’ Marcellus
October 25, 2012October 25, 2012

Range Resources posted its financial and operating update for the third quarter of 2012 yesterday. MDN has pulled out the operational report for the Marcellus Shale and includes it below. Of particular interest in the Range update are two items: 1) Range’s continued focus on what they call their “super-rich” area of the Marcellus—an area they define as having wet gas present with 1,350 Btus or higher; 2) Range had a “significant step-out well” in the super-rich area that tested at 1,044 barrels per day of natural gas liquids.

MDN has also included (below) a copy of a map Range published as part of a presentation earlier this year outlining where the super-rich area for them is located.

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Energy Companies | Hydraulic Fracturing | Industrywide Issues | Pennsylvania | Range Resources Corp | Regulation | Washington County

PA State Rep. White Accuses Range Resources of Extortion
October 25, 2012October 25, 2012

Pennsylvania State Rep. Jesse White (D) from Cecil, PA (Washington County) is a well-known and devoted anti-driller. He’s accusing Range Resources of attempted extortion of the Town of Cecil. Here’s the background:

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Blue Ridge Mtn Res/Magnum Hunter | Energy Companies | Industrywide Issues | M&A | Ohio | Statewide OH | Statewide WV | West Virginia

Magnum Hunter Buys Virco for $106.7M with 51,500 Net Acres
October 25, 2012October 25, 2012

Magnum Hunter announced this morning they’ve purchased 100% of privately-held Viking International Resources, Inc. (“Virco”) for $106.7 million using a stock swap and cash. The deal means Magnum Hunter will get an additional 51,500 net acres in the Marcellus and Utica Shale in West Virginia and Ohio, pushing their total acreage to something just over 166,000 acres throughout the Appalachian region. Management already has it’s eye on the new acreage and has identified 74 new drilling locations in the Marcellus and 31 new locations in the Utica Shale.

Details on the transaction and what it means:

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Dominion Energy | Energy Services | Industrywide Issues | Marshall County | NGLs | Processing Plants | West Virginia

Dominion $500M NGL Processing Plant in WV to Open in December
October 25, 2012October 25, 2012

Some 903 workers are hard at work in Natrium, WV building Dominion Resources’ new processing plant. Dominion announced they would build a $500 million natural gas liquids processing plant in August 2011 (see this MDN story). Dominion says they are on track to open the facility in December of this year.

Once the plant is done it will process an incoming 200 million cubic feet per day of Marcellus and Utica Shale “wet gas” and separate it into ethane, pentane, butane, propane and other compounds for resale. But the plant is not without controversy. The local trade union is not happy that the contractor building the new plant is only using one-third local workers for the project:

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CONSOL Energy | Energy Companies

CONSOL 3Q12 Update: $11M Loss, Spent $438M on New Projects
October 25, 2012October 25, 2012

CONSOL Energy released third quarter results today and it’s not pretty for the energy giant (a loss of $11 million) because of their historical dependence on coal as their main source of revenue. CONSOL continues to diversify, namely by expanding into shale gas drilling in the Marcellus Shale. But coals gradual decline is having an impact on the company.

Although these quarterly earnings reports tend to cause glazing over of the eyes, every now and again you pick up a juicy tidbit, like MDN did with this report. Among the language is a brief reference to how much it costs CONSOL to produce natural gas per thousand cubic feet. How much is it costing CONSOL?

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Energy Services | GreenHunter Resources | Industrywide Issues | Ohio | Ritchie County | Washington County (OH) | Wastewater | West Virginia

GreenHunter Buys 2 More Wastewater Injection Wells
October 25, 2012October 25, 2012

GreenHunter Energy, a company specializing in treatment and disposal of fracking wastewater, continues to add new wastewater injection wells to its portfolio. Just today they announced they’ve purchased two more injection wells, one in Washington County, OH and the other in Ritchie County, WV. In February of this year, GreenHunter purchased three injection wells, one of which was also in Washington County, OH (see this MDN story).

Here’s the details about the two newest injection wells for GreenHunter:

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Economic Impact | Industrywide Issues | M&A

No Major Marcellus M&A Deals in 3Q12
October 25, 2012October 25, 2012

According to a PricewaterhouseCoopers report due out today, there were no major mergers and acquisitions of $50 million or more among energy companies for deals in the Marcellus Shale during the third quarter of 2012—the first time that’s happened since early 2010. Why?

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Hydraulic Fracturing | Industrywide Issues | Mahoning County | Ohio

Fact and Fiction About Fracking in OH County Park
October 25, 2012October 25, 2012

An article in the Salem (OH) News points out the false impressions sometimes held by those who oppose or have concerns about fracking. The example they highlight comes from area residents who had concerns about a county park in Mahoning County, OH, not far from Youngstown. The park is called Mill Creek MetroParks—a 4,400-acre park with spectacular views and walking trails, a championship golf course, a working farm and much more.

Residents were concerned about leasing land from the park for Utica Shale oil and gas drilling. Concerns center on contamination of water supplies in the park, land being disturbed with heavy equipment use, truck traffic and the like. Concerned residents learned at a recent seminar held at the park that drilling already happens from neighboring property and there’s been 40+ wells drilled (or being drilled) under the park to date.

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Economic Impact | Industrywide Issues | Pipelines

Platts Reports REX Pipeline Volume Down 33% This Month
October 25, 2012October 25, 2012

Platts news service calls attention to the Rockies Express Pipeline (REX) and how it’s been impacted by the huge quantities of natural gas being produced in the mighty Marcellus Shale. Flows in the REX pipeline have dropped 33% in October alone due to abundant supplies of Marcellus Shale gas. But the Marcellus is not the only reason why the gas is staying West:

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

Maryland Senators Support Lease Tax to Fund Fracking Study
October 25, 2012October 25, 2012

Two “prominent” Maryland State Senators, both from Montgomery County in the Washington, D.C. suburbs (and both Democrats), are supporting legislation that would create a long-term moratorium on shale gas drilling in the state:

Read More “Maryland Senators Support Lease Tax to Fund Fracking Study”
Beaver County | Industrywide Issues | Lawrence County | Pennsylvania | Seismic Testing

NW PA Sees Signs of Increased Shale Gas Drilling
October 25, 2012October 25, 2012

Drilling in the Utica and Marcellus Shale in northwestern Pennsylvania is picking up. One strong indicator of that is the very active program of seismic testing now happening along roadways in Lawrence and Beaver counties:

Read More “NW PA Sees Signs of Increased Shale Gas Drilling”
Best of the Rest

Marcellus & Utica Shale Story Links: Thu, Oct 25, 2012
October 25, 2012October 25, 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: Thu, Oct 25, 2012”