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NewsLetters

Permit Activity last week.  

  • PA –46 permits; Southwestern really active in Bradford; Rex in Butler
  • OH –11 permits; Gulfport active in Monroe; PDC in Washington

Expo/Industry events for the next few months:

Shale Insights September 24 – 25, Pittsburgh, PA

PA’s only Expo where all the E&P companies will be in attendance from Access Midstream to XTO Energy.  Come visit us at booth 535.  We’ll make introductions wherever we can.

The Fourth Annual West Virginia Oil & Gas Expo October 1, 2014

Flash-Fire-Workshop October 8th Pro Football Hall of Fame, Canton, OH

Bill Radford, Safety Basin Coordinator, Eclipse Resources will be the featured speaker. It will be a good networking event for everyone in safety compliance and you’ll learn latest about FR clothing and handling.  Learn more about safety, network during breaks and lunch, all courtesy of Cintas, Bulwark and ShaleDirectories.com??

Shale Gas Symposium, October 8th Agri-Plex Expo Center, Allentown, PA

Utica Summit II, October 14th, Canton, OH

Learn about the downstream opportunities coming to OH and western PA as the result of the cracker plants and more.  National and local speakers will give you real insight into what’s coming.  
See what will be happening with the cracker plants in PA, OH and WV
Register now
http://www.uticasummit.com/

Midstream PA 2014, November 18TH, Penn State

PA’s first midstream conference.  Speakers from MarkWest, Williams, UGI and more.  You will learn what’s coming in midstream in 2015. Limited sponsorships and seating.  
Register now to reserve your seat http://midstreampa2014.com/wordpress/

http://www.shaledirectories.com/site/oil-and-gas-expo-information.html

Latest facts and a rumor from the Marcellus and Utica Shale

  • Thoughts for the week.  
     
    • Texas.  I attended the DUG Eagle Ford Expo in San Antonio this past week.  It was certainly a highly successful, high energy expo.  Congratulations to Hart Energy for such an impressive event.   As I walked the aisles, I could feel the eagerness and excitement that I experienced when the Marcellus Shale was just taking off.

      After the DUG Eagle Ford, I spent a day in Houston meeting with the senior management of companies working in the oil and gas industry.  In discussing the current drilling activity, they all commented that they have not seen anything like this in a long time.  A couple commented on the influx of people into the Houston area to work in the oil and gas industry.  

      If your company is looking to increase their footprint in the oil and gas industry, Texas is the place to be.
       
    • Utica Shale is going to be big in 2015.  After last week’s Facts & Rumors went out, a senior person at an oil field service company, whom I hold in high esteem, sent me an email and said, “Utica is poised to take off in 2015.”  Buckle up in Ohio.  2015 is going to be a good year.
       
    • Shale Insight.  As I have attended expos throughout the Marcellus and Utica this year, I noticed the absence of E&P personnel at the event which negatively impacted these events.  

      This should not be the case at Shale Insight.  I’ve been told that individuals of the Coalition’s Board Members will be there.  While these companies will not have booths, the representatives will be there. It should be a good opportunity to meet some E&P representatives.  We’ll be there at booth #535.  Stop by if you get a chance.
  • Congratulations Cabot!  As reported in the WSJ this week, Cabot was recognized as having the most production gas well in the U.S.
     
  • Vantage IPO.   Vantage Energy, with a major operation in the Marcellus Shale, filed paperwork with the Securities and Exchange Commission for an initial public offering (IPO) in which they said they want raise $400 million.  Vantage announced it is moving forward with an IPO later this month and they now hope to sell up to 23,550,000 shares of common stock and raise $601 million–a pretty healthy jump. Vantage owns 48,000 acres in the Marcellus Shale–in Greene County, PA. They also have a sizable stake in the Barnett Shale (in Texas). Vantage is a relatively young company, founded in 2006 by the former president of EnCana, Roger Biemans

    It seems the market conditions are right for E&P companies with holdings in the Marcellus and Utica to do an IPO.  Rice and Eclipse Resources had successful IPO’s earlier in the year.  Look for increased activity from Vantage once it gets this funding.
     
  • Again no harm from fracking.  The Department of Energy once again conducted a study that shows hydraulic fracturing shows no evidence of harming drinking water supplies under the Marcellus Shale region.

    How many of these studies have to be conducted?  Really, there is a better use for our tax dollars.
     
  • PDC selling Marcellus assets to focus on the Utica.  PDC Energy plans to keep its Bridgeport regional office open despite agreeing to sell its Marcellus shale play in West Virginia, a company official said Wednesday.}

    The Denver-based firm’s decision to sell its interest in PDC Mountaineer to Mountaineer Keystone Energy will not affect the 110 support staff working at the Charles Pointe office, said Michael Edwards, senior director of investor relations.

    “We will still have operations in Appalachia, where we have built a lease position of approximately 67,000 net acres in the Utica shale in Southeastern Ohio, and we are actively drilling horizontal wells,” Edwards said.

    PDC Energy is moving quickly into the Utica.  It received 4 permits this week to drill in Washington County, OH.
     
  • Magnum Hunter finding success in Monroe County, OH.  Magnum Hunter Resources Corp., one of the early adopters of drilling in Ohio’s Utica and Marcellus shale on the same well pad, expects to have five wells in production before year’s end.

    The company announced impressive results on its Stalder well pad in Monroe County this year, with an initial production rate of 32.5 million cubic feet of natural gas per day.

    It has drilled its first Marcellus well on the pad, and is in the process of drilling three more Utica wells, the Houston-based oil and gas company said in its most recent update.
     
  • New England Pipeline.  Spectra Energy Corp. and Northeast Utilities proposed a $3 billion pipeline expansion in New England, the latest attempt to fix a natural-gas bottleneck that sent energy prices soaring during a frigid winter.

    The Access Northeast project will boost capacity on Spectra’s Algonquin and Maritimes pipelines by as much as 1 billion cubic feet a day, the companies said in a statement. The project, half owned by each company, will supply fuel for power plants and home heating and is expected to be in service in November 2018.

    Wholesale power prices for the spring reached a six-year high in New England as a deep freeze known as the polar vortex gripped the eastern U.S., driving demand for gas. A shortfall in pipeline capacity has restricted supplies in New England, even as output from Pennsylvania’s booming Marcellus shale gas formation nearby reached a record high this year.

    “New England wholesale electricity costs were nearly double compared to the previous year, largely due to pipeline constraints,” Tom May, chief executive officer of Boston and Hartford, Connecticut-based Northeast Utilities, said in the statement. “These challenges will remain the same for the next several years, and our customers will feel the effects, if we do not act.”

    Spectra, the Houston-based owner of 22,000 miles of oil and gas pipelines, joins competitors Kinder Morgan Energy Partners LP and EQT Corp. in racing to expand links from the Marcellus to East Coast customers.
     
  • Energy workers surpass steelworkers.  Anybody who grew up in Western Pennsylvania, worked in a mill or rooted for a football team called the “Steelers” might find it hard to believe, but there are more people in Pennsylvania working in the oil and gas industry than there are in the steel industry.
     
  • There were 20,999 people employed in the oil and gas industries in Pennsylvania in 2013 while employment in iron and steel mills and ferroalloy manufacturing totaled 13,489, according to the Center for Workforce Information and Analysis, a branch of the Pennsylvania Department of Labor and Industry.
     
  • 3Bear Energy moving into the Permian.  Surging Permian Basin crude oil and natural gas production is driving investment in expanding the region’s midstream infrastructure.

    Joining the Permian Basin midstream community is Denver-based 3Bear Energy, which recently opened its Permian Basin regional office at 306 W. Wall St. in downtown Midland to serve the Permian Basin.
     
  • Hilcorp showing success in Mahoning County, OH.  Hilcorp Energy Co.’s Carbon Limestone Landfill wells in Poland Township are showing muscle after just 22 days of production, according to reports released by the Ohio Department of Natural Resources.

    Four of the six horizontal wells now in production at the Poland site’s CLL2 well pad each produced more than 100 million cubic feet of natural gas over 22 days from the Utica/Point Pleasant shale formations during the second quarter of 2014, ODNR reports.

    The best performing gas well at the site is the CLL2 3H well, which produced 134.9 million cubic feet of gas during the period, records show. The well is also the most productive well in Mahoning and Trumbull counties.

    A seventh well drilled at the Poland landfill’s CLL1 pad elicited 98 million cubic feet of gas in 87 days, the report shows.

Rig Count

  • Baker Hughes Rigs count for the September 12th reporting week.  Again we believe Baker Hughes count is on the light side
     
    • PA
      • Marcellus 56 rigs – up 1
      • Utica 2 rigs – unchanged    
    • Ohio
      • Utica 42 – up 1    
    • WV
      • Marcellus 27 unchanged
    • TX
      • Eagle Ford – 203 up 1
      • Permian Basin – 473 unchanged
    • NM
      • Permian Basin – 93 up 3
    • ND
      • Williston – 185 unchanged            
    • MT
      • Williston – 8 up 2
    • CO
      • Niobrara – 57 unchanged

TOTAL U.S. Rig Count 1931 up 6

PA Permits for September 11, to September 18, 2014

        County              Township              E&P Company
1.    Beaver               South Beaver          Chesapeake
2.    Bradford            Herrick                     Southwestern
3.    Bradford            Herrick                     Southwestern
4.    Bradford            Herrick                     Southwestern
5.    Bradford            Herrick                     Southwestern
6.    Bradford            Herrick                     Southwestern
7.    Bradford            Herrick                     Southwestern
8.    Bradford            Herrick                     Southwestern
9.    Bradford            Herrick                     Southwestern
10.    Bradford          Orwell                       Southwestern
11.    Bradford          Orwell                       Southwestern
12.    Bradford          Orwell                       Southwestern
13.    Bradford          Orwell                       Southwestern
14.    Bradford          Wysox                      Chesapeake
15.    Butler               Middlesex                Rex
16.    Butler               Middlesex                Rex
17.    Butler               Middlesex                Rex
18.    Butler               Middlesex                Rex
19.    Butler               Middlesex                Rex
20.    Butler               Middlesex                Rex
21.    Cameron         Shippen                  Seneca
22.    Cameron         Shippen                  Seneca
23.    Cameron         Shippen                  Seneca
24.    Fayette            Redstone                Chevron
25.    Fayette            Redstone                Chevron
26.    Greene            Center                      EQT
27.    Greene             Washington            EQT
28.    Lycoming          Eldred                    Inflection
29.    Susquehanna   Gibson                  Cabot
30.    Susquehanna   Oakland                Southwestern
31.    Washington       East Finley           CONSOL
32.    Washington       North Strabene    Range
33.    Washington       Nottingham           Range
34.    Washington       Nottingham           Range
35.    Washington       Nottingham           Range            

OH Permits – week ending September 13, 2014

        County                Township           E&P Companies

1.    Belmont               Richland                XTO
2.    Belmont               Washington           Gulfport
3.    Carroll                  Perry                      Chesapeake
4.    Monroe                Sunsbury                Gulfport
5.    Monroe                Sunsbury                Gulfport
6.    Monroe                Sunsbury                Gulfport
7.    Monroe                Sunsbury                Gulfport
8.    Washington         Adams                    PDC
9.    Washington         Adams                    PDC
10.    Washington       Adams                    PDC
11.    Washington       Adams                    PDC

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Joe Barone jbarone@shaledirectories.com 610.764.1232
Vera Anderson vera@shaledirectories.com 570.337.7149

 

 

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