BusinessCreator, Inc.

NewsLetters

Permit Activity last week.  

  • PA – 26; EQT in Greene County; Cabot in Susquehanna
  • OH –0; Permitting is slow.

Expo/Industry events for the next few months

Ohio Valley Oil & Gas Expo
April 28 & 29
James Carnes Center
St. Clairsville, OH

Last year’s event showcased over 150 booths and brought in 2,000+ visitors.  An even larger turn out is expected this year, as this area continues to evolve into the busiest shale play—making our business to business events the place to be!

Register now to exhibit!  www.ohiovalleyoilgasexpo.com

“Get Ready for Summer Safety Seminar”
May 27, 2015
Undo’s
St. Clairsville, OH

Summertime is the height of the drilling season in the oil and gas industry.  It is a time when workers have to be especially aware of the safety issues and how it relates to work practices, clothing and general health.
The “Get Ready for Summer Safety Seminar” will the first safety seminar of its type held in the Marcellus and Utica Shale regions of OH, WV and PA.  

The topics to be covered in the seminar are:

  • Summer means: It’s storage tank vapor hazard season
  • Bulwark – Flame Resistant Clothing
  • Timberland PRO – Foot protection
  • HexArmor – Hand protection
  • Sqwincher – Hydration
  • Strata Products Worldwide – OSHA training and gas meters

Register here:  http://bit.ly/1BEDfRr

DUG Permian Basin
May 19-21, 2015
Fort Worth, TX

The DUG Permian Basin conference and exhibition provides a 360° view of what's happening in Permian Basin today, and what you need to do to stay ahead of its enormous growth curve. If you are looking to keep pace with the latest technology advances, drilling plans and pipeline build-outs, DUG Permian Basin is the your connection to all of the action. Join us May 19-21, 2015 in Fort Worth, TX to discover new business opportunities and network with other individuals active in the Permian Basin.

www.DUGPermian.com

DUG East
June 23-25, 2015
Pittsburgh, PA

The DUG East conference and exhibition is the world’s leading event focused on unconventional resource development in the vast Marcellus and Utica shale plays, as well as emerging plays throughout the Appalachian region. Each year, thousands of oil and gas industry professionals gather for two days of world-class presentations and exclusive networking opportunities. Conference sessions are impactful and informative, covering a wide range of timely topics around exploration, drilling, completions and production.

www.DUGEast.com

Latest facts and a rumor from the Marcellus and Utica Shale

  • Upstream PA 2015 Seminar.  Thank you to all who participated -- the attendees, speakers, panelists and sponsors.  We had a fact filled day with on permitting, drilling and midstream activity in the Marcellus and Appalachian Basin and the proposed budget that include a severance tax.   

    As part of the information, I collected the permitting date from April 1, 2015 to April 9, 2015 which had 307 permits issued so far in 2015.  That number, 307, pales in comparison to the last year’s 989 permits during the same period.  There are three factors driving the slow down:
  1. Natural gas prices
  2. Lack of infrastructure – need more pipelines
  3. Legislative uncertainty in PA – severance tax and other pending regulatory issues

A look at the permitting numbers to date in 2015:

  • Top 5 counties – 26 counties in PA have received drilling permits in 2015
    • Bradford 60
    • Greene 44 – no one every talks about this county, but it’s busy
    • Washington – 34
    • Susquehanna – 33
    • Butler – 17
  • Top 5 E&P Companies  -- 31 companies have received permits
    • Chesapeake – 59
    • EQT – 23
    • Vantage – 21
    • Southwestern – 19
    • Consol – 16

We are satisfied that the attendees found the data presented very helpful as they strategically plan how they will continue to work in the oil and gas business for the remainder of the year.

  • Chesapeake gets $25 million and acreage from American Energy-Utica.  American Energy-Utica settles (without Aubrey McClendon’s blessing) with Chesapeake Energy for up to $25M

    Aubrey McClendon’s Utica shale company will give 6,000 acres of Ohio land to Chesapeake Energy Corp. and pay up to $25 million in a partial settlement with the company he brought to prominence.

    American Energy-Utica LLC, a subsidiary of American Energy Partners LP natural-gas development company, announced the settlement Tuesday morning along with the Houston investment firm Energy & Minerals Group, the major funder of American Energy Partners. American Energy-Utica and 20 unnamed investors are no longer part of Chesapeake’s lawsuit.

    McClendon didn’t approve of the deal – his major financial backers did. He has not been a director of the subsidiary since this year, though remains a director of the parent company.
     
  • PA’s top 5 producers.  Oklahoma-based Chesapeake Energy Corp. is the No. 1 natural gas producer in Pennsylvania.

    The company has718 active Marcellus Shale wells in eight counties and produced 783,859,993,000 cubic feet in 2014, according to a review of state records by the Pittsburgh Business Times on April 3.

    No. 2 is Cabot Oil and Gas with 416 wells in two counties.

    Third is Range Resources with 791 wells in 10 counties.

    No. 4 is Southwestern Energy with 261 wells in three counties.

    Fifth is EQT with 320 wells in 10 counties.
     
  • Magnum Hunter has big increase in production,  Magnum Hunter Resources Corporation MHR announced that the Company's oil and gas production increased ~66% for the three months ended March 31, 2015 to ~14.7 Bcfe (~2.5 million Boe) or an average of ~163.6 MMcfe (~27,261 Boe) per day (74% natural gas, 13% oil and 13% NGLs), compared with production of ~8.9 Bcfe (~1.5 million Boe) or an average of ~98.6 MMcfe (~16,433 Boe) per day (56% natural gas, 29% oil and 15% NGLs) for the three months ended March 31, 2014. The increase in production was attributable primarily to the Company's expanded 2014 drilling program in its core areas of operations and production results from the Marcellus and Utica Shale plays.
     
  • Bakken production declines.  Will it recover?  North Dakota oil production fell for the second consecutive month in February, with a decline of more than 14,000 barrels per day (BPD) reported by the state’s top energy industry regulator Tuesday, April 14.

    Lynn Helms, Director of North Dakota’s Department of Mineral Resources, said he believes the decline in production will continue for the next three months, and then rebound during summer.

    Preliminary February numbers from the Department of Mineral Resources released Tuesday, April 14, put oil and gas production for the month at 1.18 million barrels of oil-equivalent per day (MMBOE/d), down from the final January total of 1.19 MMBOE/d.

    “I do anticipate month-to-month, 1% to 2% decreases in production,” Helms said. “I think we’ll see a big catch-up in June.”

    The department estimated the number of wells waiting for completion continues to climb, to 900 in February, from 825 in January.

    Helms said the backlog is the reason for the pending rebound in production. Wells must be completed within one year of being drilled by state law. More than 100 wells will hit that deadline in June.
     
  • Eclipse goes it alone.  Despite three months of negotiations with several undisclosed parties, independent oil and gas producer Eclipse Resources said Tuesday, April 14, it has ruled out forming a joint venture.

    The State College, PA-based company said it has sufficient liquidity to develop its assets alone and will defer a partnership until commodity prices improve.

    Eclipse said a $434 million private equity placement with EnCap Investments in December and a $125 million undrawn credit revolver would be enough to fund this year's capital budget.

    "While there was significant interest in forming such a venture from numerous parties, we have concluded the more accretive course of action is not to enter into a drilling joint venture ... until commodity prices recover," Benjamin Hulburt, CEO, Eclipse, said.

    Formed in 2011 by a team including Hulburt, former CEO of Rex Energy, Eclipse went public last June, and its year-end production increased significantly from 2013.

    However, even with strong liquidity heading into 2015, management expressed concern about maintaining momentum in the current commodity price environment and said last month a JV would help reduce its capital spending this year.

    Eclipse has nearly 130,000 acres in Ohio’s Utica and Marcellus Shales, where it controls roughly 80% of its acreage. Its operating partners include Antero Resources and Magnum Hunter Resources.

    In December the company announced a 2015 capital budget of $640 million, but it said Tuesday, April 14, it would cut that nearly in half, to $352 million, down 57% from 2014 spending.
     
  • Trans Energy selling assets.  Trans Energy is to sell a third of its Marcellus shale assets in Wetzel County, West Virginia, for a total of $71.3 million.

    The sale includes 5,159 acres of land, containing 12 producing Marcellus shale gas wells, and represents around a third of the company’s holdings in the Marcellus basin.

    The company expects to receive net proceeds of $47 million. Much of the cash flow will be used to address Trans Energy’s debt to allow future development of the company in its current holdings in Marshall and Marion Counties, where the company is engaged in a joint venture with Republic Energy.

    John Corp, President of Trans Energy, said, “today’s announcement supports the belief that our team’s hard work and well defined strategy has built a position in Northern West Virginia that is highly valuable.”

    The joint venture with Republic Energy currently holds a combined 27,800 acres, around a third of which are held by Trans Energy.

    The company expects to drill 150 horizontal wells on the land, subject to regulatory approval and hopes to increase this to over 350 once it secures additional title work and leasehold acquisitions that are currently planned.

    Corp added that Trans Energy will continue to “expand the overall acreage position of our joint development arrangement with Republic Energy… particularly in Marion and Marshall Counties.”
     
  • Gulfport buys leases in Belmont and Jefferson Counties, OH.  Independent oil and gas producer Gulfport Energy said Wednesday, April 15; it’s acquiring Paloma Partners III in a $300 million deal.

    Paloma, which is funded by private equity firms EnCap Investments and a Macquarie Group unit, holds roughly 24,000 nonproducing acres in the core of the dry gas window of the Utica Shale, located in Ohio’s Belmont and Jefferson Counties.

    Pro forma for the full 24,000 acres, Gulfport's holdings of Utica Shale leasehold are expected to total roughly 212,000 acres under lease in the core of the play. The transaction is expected to close during the third quarter.
     
  • No severance tax in OH.  Republican leaders in the Ohio House of Representatives on Tuesday, April 14, revealed their version of the state's two-year operating budget, which would cut nearly all tax reforms proposed by fellow Republican Gov John Kasich -- including a 6.5% severance tax on unconventional oil and natural gas production.

    Substitute House Bill 64 would cut Kasich's $72.3 billion state budget by $777 million. House majority leaders said Kasich's proposals to increase the state sales, commercial activity, cigarette, and severance taxes -- floated to help fund a $5.7 billion, 23% income tax cut -- had been removed.

    In their place, the House leaders proposed a $1.2 billion, 6.3% income tax cut.
     
  • EOG sitting on 900 wells to be fracked in Bakken.  Oil producer EOG Resources Inc has the lion’s share of an estimated 900 North Dakota wells waiting to be fracked, according to state data, showing that even major oil titans are mothballing operations while they hope for a rebound in oil prices.

    For months the conventional wisdom in North Dakota’s Bakken shale formation had been that smaller producers with weak cash flow comprised the bulk of that estimate.

    While the estimate had been published monthly, it was not clear until a Tuesday update from the state’s Department of Mineral Resources (DMR) who was dominating the list. Oilfield service companies have aggressively sought the information, hoping to drum up new business.

    By late May, the number of wells waiting to be fracked is expected to breach 1,000, DMR officials said, fueled largely by cheap oil and a $5.3 billion industry tax break expected to hit in June.

    Oil producers have up to a year to frack the wells before they must ask state officials to label them “temporarily abandoned.”

    The fact that industry stalwarts like EOG are having to hold off on fracking new wells shows how much low prices make the remote Bakken far less economical compared to other U.S. shale plays.

Rig Count

Baker Hughes Rigs count for the week April 17, 2015

  • PA
    • Marcellus 47 down 1
    • Utica 1 down 1
  • Ohio
    • Utica 25 down 1
  • WV
    • Marcellus 22 unchanged
  • TX
    • Eagle Ford – 123 down 2
    • Permian Basin  212 down 8
  • NM
    • Permian Basin – 46 up 2
  • ND
    • Williston – 83 down 5
  • MT
    • Williston – 1 unchanged
  • CO
    • Niobrara –26 unchanged
       
  • TOTAL U.S. Rig Count 954 down 34

PA Permits for April 9, to April 16 2015

       County                   Township            E&P Companies

1.    Bradford                  Tuscarora             Chesapeake
2.    Bradford                  Tuscarora             Chesapeake
3.    Bradford                  Wysox                 Chesapeake
4.    Greene                    Center                 EQT
5.    Greene                    Center                 EQT
6.    Greene                    Center                 EQT
7.    Greene                    Center                 EQT
8.    Greene                    Center                 EQT
9.    Greene                    Center                 EQT
10.    Greene                  Center                 EQT
11.    Greene                  Center                 EQT
12.    Greene                  Center                 EQT
13.    Greene                  Morris                  Consol
14.    Greene                  Morris                  Consol
15.    Greene                  Richhill                 Noble
16.    Greene                  Whiteley               Ener. Corp of Amer.
17.    Greene                  Whiteley               Ener. Corp of Amer.
18.    Lycoming               Gamble                Atlas
19.    Susquehanna          Hartford                Cabot
20.    Susquehanna          Hartford                Cabot
21.    Susquehanna          Hartford                Cabot
22.    Susquehanna          Hartford                Cabot
23.    Susquehanna          Hartford                Cabot
24.    Washington            Fallowfield             Rice
25.    Washington            Fallowfield             Rice
26.    Washington            Fallowfield             Rice
 

OH Permits – week ending April 4. 2015

County            Township                E&P Companies

1.    NO PERMITS THIS WEEK

Maximize your 2015 marketing budget by being a member in ShaleDirectories.com

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

 

Northeast Supply Enhancement