BusinessCreator, Inc.


Permit Activity last week.  

  • PA – 0; Facts & Rumors has been published for almost 3 years.  This is the first time there were no weekly permits issued in PA.
  • OH –7; American Energy Utica in Belmont County.


Expo/Industry events for the next few months

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.

Visit us at booth #837

Supply – Demand – Price
The Utica’s economic impact on Stark County
May 13, 2015
2:30 – 7:00
Pro Football Hall of Fame

Register Now!

Energy & Education Expo
May 20, 2015
Kiwanis Wyoming County Fairground
Meshoppen, PA

The Wyoming County Chamber of Commerce announces the Energy & Education Expo sponsored by Southwestern Energy, Sugar Hollow Water Services & Williams.  

The energy industry in the Marcellus Shale region is evolving and the Wyoming County Chamber of Commerce wants to assist you in staying apprised of the focus and next steps. The event is free to the public and open for all to attend from 11:00am - 3:30pm.

Vendors for the Energy & Education Expo are encouraged to register NOW!

“Get Ready for Summer Safety Seminar”
May 27, 2015
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:

Utica Midstream
June 10, 2015
Walsh University
North Canton, OH

The midstream business is very active in Ohio. There are 13 pipelines that are being built or in the early start up phases in Ohio. If you want to get the latest information from the major midstream companies, plan on attending Utica Midstream seminar. It will feature speakers from Williams, Marathon Petroleum, EnLink, Spectra Energy and Blue Diamond.

Register now!

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.

Latest facts and a rumor from the Marcellus and Utica Shale


  • Is $65 oil the answer??  I just spent the last week in Houston at OTC.  In speaking with a number of industry professionals, there seems to be consensus that if oil can firm up at $65 and stay there for a while drilling activity will pick up.
  • Shell Community Meeting, May 6th.  Jeff A. Krafve was named Shell’s facility General Manager.  He's a 30-year Shell veteran, most recently GM of a Shell petrochemical plant in Mobile, AL.  He said that Shell is willing to go anywhere to talk to a group about the project.   The public hearing was specifically about DEP's air emissions permit.

    DEP already has said it thinks Shell crossed all its t's and dotted all its i's and it will, I believe, approve the permit. The public comment period is up May 15, so we might actually hear something close to then. Some people think we’ll get a “go or no-go” decision before August.

  • Gulfport bringing in 4th rig.  Gulfport Energy Corp. plans to deploy a fourth rig later this year on the 24,000 net Utica Shale acres it recently acquired to focus on natural gas production in the near-term while crude oil and natural gas liquids (NGL) prices remain depressed.

    The company acquired the assets in April from private equity-backed Paloma Partners III LLC for $300 million in a deal that should be completed later this year (see Shale Daily, April 16). CEO Michael Moore said a rig would likely be deployed on the properties in Ohio’s Belmont and Jefferson counties in the fourth quarter, with production expected to start sometime early next year. The properties fit "hand in glove" with this year's shift to dry gas production.

    "Our realized NGL price came in slightly lower than anticipated," Moore said during a call with financial analysts on Wednesday to discuss first quarter earnings. "Gulfport, as well as our peers, expect NGL weakness to continue throughout 2015...To keep all this in perspective, remember that NGLs will account for less and less of production as we approach year-end. We continue to focus on our high return dry gas opportunities in the Utica."

    Gulfport dropped three of its six rigs at the end of last year, but it's been increasingly focused on the Utica. Canadian oil sands production also has been idled and it has scaled back operations in Louisiana. The company has dedicated 96% of this year's capital budget to the Utica, where year-over-year production spiked sharply in the first quarter.

    Since early last year, Gulfport has continued to beat its guidance (see Shale Daily, Oct. 15, 2014; May 8, 2014). Of the 424.4 MMcfe/d it produced in the first quarter, 396 MMcfe/d was produced in the Utica, a 213% increase from the play's volumes at the same time last year.

  • Rex Energy makes big announcements.  Rex Energy released its 2014 year in review and projected some numbers for 2015 (see Rex Energy 2014: Revenues Up 39%, Production Up 66%, 50 New Wells). A day later the company hosted an analyst/investor conference call. In reviewing that call, there was some news of interest. Rex said it is considering selling 28,300 non-operated acres in Westmoreland, Clearfield and Centre counties (PA) as a way of raising more money. Officials also said they’re looking for a buyer for their 60% stake in Keystone Clearwater Solutions, an oilfield services company, and a joint venture partner with Rex in its Moraine East PA acreage.  Below are excerpts from last week’s Rex conference call.

    First up is the news, from the Pittsburgh Business Times, about Rex’s desire to sell some acreage:

    • State College-based Rex Energy Corp. said it may consider selling its working interests in 28,300 gross acres in Westmoreland, Clearfield and Centre counties as a means to bolster liquidity.
    • During its quarterly earnings call with analysts on Thursday, Chief Financial Officer Thomas Rajan said selling its interests — about 40 percent on average — in the acreage is an additional lever the company can pull to improve its liquidity.

But for the time being, the company’s main focus is finding a buyer for its 60 percent stake in Keystone Clearwater Solutions, an oilfield services company, and looking for a joint venture partner for its Moraine East acreage.

CEO Tom Stabley said the company has been in talks with both strategic and financial partners and that Rex is making progress on both deals.

“Both of these transactions are in various stages of negotiations, but at this point we’re very pleased with where we are,” he said. Stabley told analysts that he expects the company will have deals to announce sometime in the second quarter.

Why the hurry to sell the Moraine East acreage? The clock is ticking. Either Rex or someone else needs to drill wells on that acreage by 2017 or they will lose their contracts.

  • Chesapeake cutting back.  Chesapeake Energy Corp. swung to a heavy loss in the first quarter as the U.S. shale driller took a $3.6 billion write-down on some properties amid tumbling oil and natural gas prices.

    Excluding the impairment and other special charges, profit came in above expectations.

    Earlier this year, Chesapeake announced plans to reduce its rig operations to their lowest level since 2004 amid falling crude-oil and natural gas prices. It said it would reduce capital expenditures by 37% and drop the number of rigs drilling for new oil and gas finds by about 38%.

    In the latest quarter, average daily production rose 14% to 686,000 barrels of oil equivalent, adjusted for asset sales. On average, Chesapeake operated 54 rigs in the quarter, compared with 67 in the fourth quarter and 60 in the prior-year period.

    Chesapeake executives said Wednesday that the company will continue to reduce its activity this year to deal with low commodity prices. For instance, Chesapeake has been curtailing wells in the Marcellus Shale of Pennsylvania.

    "We plan to maintain production at that reduced activity, but stand ready to respond to what the market tells us, regardless of production impacts," said Chris Doyle, executive vice president of operations for Chesapeake's northern division.

    Low prices for natural gas and related liquids are forcing Chesapeake Energy Corp. to cut into Ohio operations.

    The Oklahoma-based energy giant said Wednesday that it intends to scale back its Utica Shale drilling in the coming months as profits drop and production continues to climb.

    Chesapeake will lower the number of drilling rigs in Ohio from five to two by the middle of the third quarter and will reduce the number of Ohio crews that hydraulically fracture, or frack, the rock from four to 2.5 for the rest of 2015, the company said in an earnings call with analysts and the media.
  • EOG establishes aggressive drilling plans.  Oil and natural gas producer EOG Resources Inc plans to begin fracking hundreds of wells in North Dakota and Texas later this year if oil prices stabilize around $65 per barrel, executives said on Monday after reporting a better-than-expected adjusted profit.

    EOG was the latest major U.S. shale oil producer to peg increased operations to a specific dollar amount, a positive sign for an industry worried that last year’s price drop would permanently cripple growth.

    Whiting Petroleum Corp said last week it would add drilling rigs to its portfolio if crude prices rise to $70 per barrel, and Pioneer Natural Resources Co told Reuters last month it was considering adding new rigs this year as West Texas Intermediate (WTI) prices rebound.

    EOG, considered a leader in the U.S. shale oil industry, has for months drilled new wells only to keep them idle by delaying fracking, part of a strategy to hold back pumping some crude after a roughly 40 percent drop in prices since last summer.

    Crude prices have inched up in the past month.

    EOG executives said Wall Street should expect the company’s 2015 production to resemble the letter “U” – falling in the first half of the year, then rebounding in the second half and hitting double-digits by next year.
  • Chevron selling.  Chevron has put nearly 12,000 acres in the Marcellus shale play on the auction block for an undisclosed price.

    The company is taking sealed bids on non-core acreage in Clearfield and northern Cambria counties in Pennsylvania until May 21, the Pittsburgh Business Times said.

    According to the company’s listing on EnergyNet Chevron is selling 11,588 mostly contiguous net acres with potential upside from Oriskany deep rights.

    The combined 12 month average net income for the acreage is listed as $218,219 per month.

    About 52 percent of the listed acreage is held in production and the asset includes six producing wells.

    “Chevron considers developing the Marcellus and Utica an important long-term opportunity and is committed to investing in its core development areas in the tri-state region,” a Chevron spokeswoman told the Pittsburgh Business Times.
  • Carrizo 1st Qtr. update.  Carrizo announced the Company's financial results for the first quarter of 2015 and provided an operational update, which included the following highlights:

    Carrizo reported a first quarter of 2015 loss from continuing operations of $21.5 million, or ($0.46) per basic and diluted share compared to income from continuing operations of $6.6 million, or $0.15 and $0.14 per basic and diluted share, respectively, in the first quarter of 2014.

    Operational Update

    The Company has now received both of its new build Generation 3 rigs and is currently running three rigs in the Eagle Ford Shale. Carrizo currently expects to drill approximately 65 gross (58 net) operated wells and complete 64 gross (57 net) operated wells in the play during 2015.

    Due to the combination of service cost reductions and continued improvements in operating efficiencies, Carrizo has been able to reduce well costs in the Eagle Ford at a faster rate than it had anticipated. The company currently expects completed well costs for a 6,100 ft. lateral well to average $5.6 million in the play, down from $5.8 million previously.

    Carrizo has continued to add bolt-on acres to its position in the Eagle Ford Shale, with the added acreage located within the volatile oil window primarily in LaSalle County. The Company's position in the trend now stands at approximately 82,500 net acres. Carrizo continues to lease acreage in the core volatile oil window of the Eagle Ford Shale.

    In the Utica Shale, Carrizo completed 2 gross (1.7 net) operated wells during the first quarter. Oil and condensate production during the quarter was approximately 200 Bbls/d, and was primarily from the Company's Brown 1H well. Due to the downturn in commodity prices, the Company released the rig it was operating in the Utica Shale during the first quarter. While Carrizo does not currently plan to drill or complete any additional Utica Shale wells this year, it is laying the groundwork to ramp activity back up in 2016 in the event of an improved commodity price environment.

    Recently, the Company brought its two-well Wagler pad in northern Guernsey County, Ohio, online following its resting period. The wells were drilled with an average effective lateral of approximately 7,300 ft. and were completed with an average of 30 frac stages. Carrizo tested the wells on a restricted choke for approximately 17 days before shutting them in at the end of April to await midstream infrastructure. Over the period, each well individually averaged more than 500 Bbls/d of condensate and more than 2.0 MMcf/d of rich natural gas with a Btu content of approximately 1,370. The wells were each still producing more than 500 Bbls/d of condensate at the time they were shut in. The Wagler wells are located very close to existing midstream infrastructure and the Company is working with a midstream provider to have them hooked to sales in the third quarter of the year. Carrizo operates the Wagler wells with an 83% working interest.

    The Company has also continued to flow test its Brown 1H well in Guernsey County. The well has been flowing for almost 100 days and has averaged approximately 410 Bbls/d of condensate over the period. Carrizo operates the Brown 1H well with a 50% working interest.

    In the Niobrara Formation, Carrizo drilled 8 gross (4.5 net) operated wells during the first quarter. Crude oil production from the Niobrara was approximately 2,400 Bbls/d for the quarter, an increase of approximately 4% versus the prior quarter. Carrizo is currently operating one rig in the Niobrara and expects to drill 13 gross (5 net) operated wells and complete 3 gross (1 net) operated wells in the play during 2015. The Company also expects to continue to participate with Whiting and Noble in high-density projects in the play within its core area.
  • Noble 1st Qtr. update.  Noble Energy's core U.S. onshore operations in the DJ and Marcellus basins are contributing meaningfully to its overall performance. Despite registering strong sales volumes in the first quarter, Noble Energy was affected by plunging oil and natural gas prices.

    Noble Energy continued to drill wells in its core U.S. onshore areas and commenced production of a few wells. The company ended the first quarter with liquidity of $5.7 billion, including $1.7 billion in cash and $4 billion of unused credit facility. Maintaining a stable liquidity position will help the company navigate through oil downturns.

    However, the ongoing weakness in commodity prices is going to act as a headwind through the majority of 2015.
  • WPX sells leases.  WPX Energy, the Tulsa-based oil and gas producer that is working to trim down to core assets and cut debt, announced it is selling some Marcellus Shale natural gas marketing contracts and pipeline capacity in that region of the eastern U.S.

    An undisclosed buyer will pay WPX in excess of $200 million cash in the deal. The two parties have signed an agreement, and the deal is expected to close in the second quarter.

    The sale includes long-term natural gas purchase and sales agreements, as well as 135 million British thermal units in daily capacity on the Transco pipeline’s Northeast Supply Link project.
  • Approach Resources drilling most efficient wells in the Permian.  Approach Resources plans to drill up to 23 wells in the Midland Basin using efficiencies and cost reductions that CEO Ross Craft said make their operations the cheapest in the region.

    Fort Worth-based Approach is drilling wells for $4.6 million each while crude oil prices are slumping. The company has slashed its capital expenditure budget by $20 million to $160 million.

    “We lead the Midland basin in the most-efficient drilling and completion of any company drilling Wolfcamp horizontal wells,” Craft said.

    It’s a combination of reduction in service costs, which is temporary and will go back up if oil prices rebound, and permanent savings from the company’s massive water recycling infrastructure.

    Together, these savings add up to about $1 million per well.

    The company spent $110 million in 2012 building this system of pipelines and water recycling facilities that are centrally located on Approach’s contiguous acreage.

    In addition to drilling, Approach plans to complete 33 wells in 2015.

    Crude oil prices have slowly marched up the past few weeks settling in the mid-$50s. But Craft cautioned that the price increase is driven by Wall Street.

    This isn’t enough to make Craft ramp up the company’s drilling plans, though.

    “I want to see a continuation of price increases,” Craft said. “I want to see a pattern. If it’s going up $5 and going down $5 that’s not a pattern. That’s Wall Street’s reaction to geopolitical affects. What I want to see is a solid movement.”

    Craft has seen his share of downturns since he entered the oil and gas industry in 1980 and he’s hoping to position the company to exit the downturn stronger than before.

    “Nobody’s making good money in this,” Craft said. “We’re not making good money, either. We’re making reasonable returns on our investment.”
  • EnLink has good 1st. Qtr.  The EnLink Midstream companies, EnLink Midstream Partners, (the Partnership) and EnLink Midstream, LLC ENLC, (the General Partner), reported results for the first quarter of 2015.

    First Quarter 2015 — EnLink Midstream Partners, LP Financial Results

    The Partnership realized adjusted EBITDA of $129.9 million, net income from continuing operations of $35.0 million, net cash provided by operating activities of $170.6 million and distributable cash flow of $98.7 million for the first quarter of 2015. The Partnership’s first quarter 2015 gross operating margin was $278.9 million and operating income was $50.8 million.

    “We are pleased with our first quarter performance and continue to execute on our growth plan in this challenging commodity environment,” said Barry E. Davis, EnLink President and Chief Executive Officer. “Consistent with our growth strategy, the Partnership has completed approximately $3.7 billion of drop downs, growth projects and strategic acquisitions in the last year. As we look ahead, we remain well positioned for stability and long-term growth.”
  • MarkWest 1st Qtr. update.  MarkWest Energy Partners, L.P. (“the Partnership”) today reported quarterly cash available for distribution to common unitholders, or distributable cash flow (DCF), of $180.3 million for the three months ended March 31, 2015, compared to $148.4 million for the three months ended March 31, 2014.


    In February, the Partnership announced the development of Majorsville VII, a 200 million cubic feet per day (MMcf/d) processing plant at the Majorsville complex in Marshall County, West Virginia. The new facility is scheduled to begin operations during the second quarter of 2016 and will support Southwestern Energy Company (NYSE: SWN) (Southwestern) and Statoil ASA (NYSE: STO) (Statoil).


    In February, Ohio Condensate Company, L.L.C., an entity owned by MarkWest Utica EMG Condensate, L.L.C. (MarkWest Utica EMG Condensate) and Summit Midstream Partners, LLC, announced the commencement of its condensate stabilization facility in Harrison County, Ohio. MarkWest Utica EMG Condensate is owned by the Partnership and The Energy & Minerals Group (EMG). The new facility consists of 23,000 barrels per day (Bbl/d) of condensate stabilization capacity and is fully integrated with a storage and logistics terminal.

    MarkWest Utica EMG, a joint venture between the Partnership and EMG, is announcing the execution of definitive agreements with Rice Energy (NYSE: RICE) to support the development of their acreage in eastern Ohio.


    In February, the Partnership, together with Enterprise Products Partners L.P., Anadarko Petroleum Corporation and DCP Midstream Partners, LP announced the formation of a joint venture under which Enterprise will assign a 45 percent ownership interest in its wholly owned Panola Pipeline Company, LLC. The interest will be evenly divided among the Partnership, Anadarko’s affiliate, WGR Asset Holding Company LLC, and DCP Midstream. The Panola Pipeline, which transports NGLs, originates in Carthage, Texas and extends 181 miles to Mont Belvieu, Texas. Enterprise announced plans to install 60 miles of new pipeline, as well as pumps and other associated equipment as part of an expansion project designed to increase capacity by 50,000 Bbl/d. The incremental capacity is expected to be available in the first quarter of 2016.

    In February, the Partnership announced the execution of a definitive agreement with Newfield Exploration to support the development of resources in the Cana-Woodford. Under terms of the agreements, the Partnership will provide gathering and processing services for associated gas from Newfield’s STACK acreage. As part of the agreement, the Partnership is constructing a low- and high-pressure gas gathering system within Newfield’s area of operation, as well as a 60-mile trunk line to the Partnership’s Arapaho processing plant in Custer County, OK.

    The Partnership is announcing an expansion of the Carthage IV plant in Panola County, Texas. The 120 MMcf/d plant commenced operations in December 2014 and will be expanded to 200 MMcf/d in the third quarter 2015. The Partnership’s East Texas facilities continue to operate near 100 percent utilization and the capacity expansion is critical to support the ongoing requirements of producers operating in the Haynesville Shale.\
  • Gulfport 1st Qtr. update.  Gulfport Energy more than doubled production in the first quarter of 2015, compared to the same period last year.

    The driller’s average net production for the quarter ending March 31 was 424.4 million cubic feet equivalent per day, a 161 percent increase from the first quarter of 2014 and an 11 percent increase from the final quarter of last year.

    In April, Gulfport’s estimated net production averaged 437 million cubic feet equivalent per day, 3 percent higher than the first quarter.

    Gulfport reported a profit of $25.5 million during the quarter, but posted an adjusted net loss of $7.2 million.

    In the Utica Shale, Gulfport began drilling operations at 16 wells and began producing at 8 wells during the first quarter. Net production from Gulfport’s Utica holdings average approximately 396 million cubic feet equivalent per day — up 213 percent from the first quarter of 2014 and 12 percent from the final quarter of the year. The driller has three operated horizontal rigs drilling in the play.

    In April, Gulfport announced its $301 million acquisition of Paloma Partners. The acquisition is expected to give Gulfport 212,000 gross acres in the Utica.

    Gulfport plans to spend $561 million to $511 million on exploration and production expenditures in 2015, 96 percent of that in the Utica Shale. Outside of its Paloma acquisition, Gulfport plans to spend 485 million to 495 million on leasehold acquisitions in the Utica during the year, focused primarily on bolt-on acquisitions to existing units.
  • Range has best dry gas well in the U.S.  Range Resources on Wednesday touted natural gas production from its first dry well in the Utica Shale, saying it is the best domestic shale gas well. The well had a record initial production rate of 59 million cubic feet of gas per day, surpassing that of a Magnum Hunter Resources well that was previously the leading U.S. shale gas well.
  • Marcellus Drilling News ranks top 5 Utica wells.  As part of MDN’s reporting about Range Resources and their stellar results with Marcellus and Utica Shale wells in 1Q15, it spotted handy table listing the top 5 Utica wells (to date) based on initial productivity.   The top 5 (highest IP first) were drilled by: Range Resources, Magnum Hunter, Rice Energy, Magnum Hunter (again), and Gulfport Energy.

  • Rice to double production.  Rice Energy is boosting its expectation for how much natural gas it will extract from shale this year despite low prices that have some Marcellus companies planning to dial back their production.

    The Cecil-based company on Thursday outlined results from new Marcellus and Utica shale wells that analysts called impressive and helped more than double production over last year. CEO Daniel Rice IV said he expects the driller can repeat those results from 17 more wells coming online through June, which will increase production even as the number of new wells being connected levels off in the third quarter.

    “We’ve played a steady hand in our expectations,” he told analysts while discussing first quarter financial results. He said the expected increase comes from being “more confident in repeatability.”

    Some producers in the northeast corner of the state including Cabot Oil & Gas, Chesapeake Energy and Seneca Resources say they are curtailing production from wells or plan to do so because of low natural gas prices exacerbated by a scarcity of pipelines to carry the commodity to lucrative markets.

    In related news, Rice Energy downsizes for 2015.

    Rice’s updated estimate of average daily production from its wells in Washington and Greene counties and Belmont County, Ohio, is about 20 percent higher than last year’s daily output. That prediction lines up closer to producers such as Range Resources, Consol Energy and EQT Corp. which have heavy concentrations in this part of the state.

    Over the past few weeks, those companies discussed plans to focus more on exploration of the dry Utica shale — which does not produce many related liquids such as ethane — below Marcellus operations in Greene and Washington counties.

Rig Count

Baker Hughes Rigs count for the week May 1, 2015


  • PA
    • Marcellus 46 unchanged
    • Utica 1 unchanged
  • Ohio
    • Utica 24 down 1
  • WV
    • Marcellus 20 down 1
  • TX
    • Eagle Ford – 105 down 5
    • Permian Basin  196 up 1
  • NM
    • Permian Basin – 41 down 2
  • ND
    • Williston – 80 up 1
  • MT
    • Williston – 0 down 1
  • CO
    • Niobrara –28 up 1
  • TOTAL U.S. Rig Count 894 down 11

PA Permits for April 30, to May 7 2015

   County            Township                E&P Companies


OH Permits – week ending May 2, 2015

       County               Township              E&P Companies

1.    Belmont                Wheeling               Amer. Ener. Utica
2.    Belmont                Wheeling               Amer. Ener. Utica
3.    Belmont                Wheeling               Amer. Ener. Utica
4.    Belmont                Wheeling               Amer. Ener. Utica
5.    Belmont                Flushing                Chesapeake
6.    Belmont                Richland                XTO
7.    Monroe                Adams                   Eclipse Resources

Maximize your 2015 marketing budget by being a member in

Joe Barone 610.764.1232
Vera Anderson 570.337.7149

Utica Summit 2019