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OUR 100th ShaleDirectories.Com Newsletter!

  • Permit Activity.  
     
    • PA – 5 permits; Everyone took a break over Memorial Day
    • OH –1 permit
       
  • Expo/Industry events for the next few months:    
     
    • Midstream Ohio 2014 June 11, Canton, OH – this event will provide a good update of midstream activity in OH with speakers from
       
      • Blue Racer
      • Access Midstream
      • Momentum
      • EnLink Midstream (merger of Crosstex and Devon Midstream)
      • Panel of local midstream companies

        Additionally, Bricker & Eckler’s Chris Schmenk will present the firm’s “Shale Economic Development Overview” which will highlight the midstream projects in OH.

        Register now!  

        https://www.cantonchamber.org/midstream-ohio-2014-sponsorship-opportunities
         
    • Northern Tier Marcellus Shale Expo June 18, Mansfield, PA The Northern Tier Marcellus Shale Business to Business Expo will be held on June 18th at Mansfield University!

      Register your business today at www.ntmarcellusexpo.com

Latest facts and a rumor from the Marcellus and Utica Shale

  • Shell selling leases to Seneca.  Landowners who have producing Shell wells in Tioga County, PA have received notices that Seneca Resources has been assigned those wells.  
    Seneca has an active rig in Tioga County.  Will Seneca be taking over more of Shell’s wells?  Will Seneca be buying more leases from Shell?
     
  • What could Shell be doing?  Shell could be moving out of the Marcellus Shale completely or could Shell moving to NW PA are start drilling in the Utica where it may hit oil at 2000’ or 3000?  (Rumor)
     
  • Rice hits it big in Belmont County, OH.  Rice announced production test results of its first operated Utica Shale well, the Bigfoot 9H.  After five days of flowback, the Bigfoot 9H stabilized at a rate of 41.69 MMcf/d of gas on a 33/64" choke with flowing casing pressures of 5850 psi.  Based upon a gas composition Rice owns an approximate 93% working interest in the well, which has an effective lateral length of 6,957 feet and was completed with a 40-stage frac.  Rice anticipates first production by early July and will produce the well into sales through our restricted choke program.

    Toby Rice, Chief Operating Officer, commented, "This Bigfoot test is a significant step towards validating the production potential of the Utica Shale in central Belmont County, where we control more than 46,000 net acres.  We are especially pleased to deliver these strong results to the landowners of Belmont County, who have believed in us from the beginning.  

    Aubrey wants more rigs in the Utica.  American Energy Partners could have 35 rigs in the Utica by 2014.  (Rumor)
     
  • Aubrey may buy Gulfport. Last week, we reported that Aubrey has raised another $4 billion and he stated that he’s looking for “deals.”  Could this be the deal?  American Energy Partners leases butt up against Gulfport’s. (Rumor)
     
  • Pioneer rapidly expanding rigs in the Permian.  Pioneer has 17 rigs currently in the Permian.  Its chairman wants to have 60 by next year this time.  (Rumor)
     
  • Summit buys into OH midstream operations. Summit Midstream Partners, LLC the privately held company that owns and controls the general partner of Summit Midstream Partners and MarkWest Energy Partners, announced today that a subsidiary of Summit Investments has exercised its option to acquire a 40.0% equity interest in Ohio Gathering Company, L.L.C. and Ohio Condensate Company, L.L.C. (together, "Ohio Gathering") from affiliates of MarkWest and The Energy & Minerals Group ("EMG").   

    Ohio Gathering owns, operates and is developing significant midstream infrastructure in the southern core of the Utica Shale in southeastern Ohio, including, Harrison, Guernsey, Belmont, Noble and Monroe counties.  The midstream infrastructure currently in service and under development includes a liquids-rich gas gathering system and a separate dry gas gathering system, as well as a condensate transportation, storage and stabilization facility.  Ohio Gathering's liquids-rich gathering system serves as a critical inlet to MarkWest Utica EMG, LLC's Cadiz and Seneca processing complexes, the largest integrated processing and fractionation system in the Utica Shale.

    Through this joint venture, Summit Investments, MarkWest, and EMG expect to develop over $3.0 billion of natural gas gathering and condensate stabilization infrastructure for its customers.  Ohio Gathering is currently gathering approximately 181 million cub cubic feet per day on behalf of Gulfport Energy Corporation, Rex Energy Corporation, and PDC Energy, Inc. under long-term, fee-based gathering agreements.
     
  • MarkWest expands Butler County, PA facility.  MarkWest Energy Partners has announced the commencement of Bluestone II, a 120 million cubic feet per day (MMcf/d) cryogenic processing facility. The Bluestone II plant is part of the Partnership’s Keystone assets in Butler County, Pennsylvania, and increases processing capacity for Marcellus producers operating in the rich-gas area of northwest Pennsylvania to 210 MMcf/d.

    Concurrently with the new processing plant, MarkWest has also completed 20,000 barrels per day of ethane and heavier fractionation capacity at the Bluestone facility, and a 32 mile purity ethane pipeline connecting to Mariner West.

    The Bluestone II plant primarily supports the expanding rich-gas production of Rex Energy Corporation. Rex Energy now has 190 MMcf/d of dedicated processing capacity at MarkWest’s Keystone facilities, which also consist of 50 MMcf/d of capacity at the Bluestone I plant and 40 MMcf/d of capacity at the Sarsen facility. MarkWest continues to develop its rich-gas gathering system throughout Butler County and surrounding areas in order to support the continued growth of its processing facilities.
     
  • Stone drilling in the Utica.  Stone Energy Corp. operates mostly in Wetzel County, WV and plans to drill a Utica exploratory well in June. Fossil Creek of Ohio also is exploring the Utica Shale in the panhandle, The Intelligencer and Wheeling News-Register.
     
  • PA Impact Fees up 11%.  The impact fee revenue totaled over $225 million for 2013, which was more than an 11% increase from 2012.  To date, the impact fee has generated over $630 million in new revenue since its enactment.

Rig Count

  • Baker Hughes Rigs count for the May 30th reporting week.  
     
  • PA
    • Marcellus 58 rigs – unchanged
    • Utica 2 rigs – unchanged    
       
  • Ohio
    • Utica 38 – down 1
       
  • WV
    • Marcellus 25 – unchanged
       
  • TX
    • Eagle Ford – 213 unchanged
    • Permian Basin – 469 up 4
       
  • NM
    • Permian Basin – 81
       
  • ND
    • Williston – 165 down 5
       
  • MT
    • Williston – 9 unchanged
       
  • CO
    • Niobrara – 54 unchanged

TOTAL U.S. Rig Count 1866 up 9

PA Permits for May 29 to June 5 2014

       County               Township              E&P Company
1.    Armstrong           Sugarcreek           Apex Energy
2.    Greene                Morgan                EQT
3.    Greene                Morgan                EQT
4.    Greene                Morgan                EQT
5.    Westmoreland      Donegal               WPX Energy

OH Permits – week ending May 31, 2014

       County             Township              E&P Companies

1.    Washington       Salem                    EM Energy


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Joe Barone jbarone@shaledirectories.com 610.764.1232
Vera Anderson vera@shaledirectories.com 570.337.7149
Andrea Bagnell andrea@shaledirectories.com 610.256.1898

 

 

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