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Permit Activity last week.  

  • PA – 24; Southwestern in Bradford County; Rice in Washington; and Chesapeake in Wyoming
  • OH –7; Chesapeake in Harrison County

Expo/Industry events for the next few months

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.   

Visit us at booth 717

www.DUGEast.com

Latest Facts and Rumors from Marcellus and Utica Shale

  • Utica Midstream Seminar.  The Canton Regional Chamber of Commerce and Shale Directories presented its third Utica Midstream Seminar and it could have been our best.  We want to thank the speakers John Henning, Dawood Engineering, Nick Homan, Marathon Pipe Line, Kris Evento, Williams, Anne Moore, Spectra NEXUS, Kelly Tipton, EnLink, Kyle Quillen, Agile Networks, and Frank Nieto, Midstream Business along with panelists Brent Breon, Blue Racer, Eric Leindecker, 1st Choice Energy and Eric Diehl, Ariel Corp.

    Each of the midstream presenters provided the audience with an update of their current projects and most importantly how to become a vendor to these respective companies.

    Nieto’s presentation entitled Perpetual Midstream demonstrated the need for pipelines well into the future as America continues to build out the pipelines to support its energy industry.
     
  • Aubrey making moves – Move #1.  Aubrey McClendon's Utica shale affiliate has sold more than 35,000 acres of eastern Ohio land rights to one of its biggest competitors. The price tag is More than $400 million.

    American Energy-Utica LLC sold 35,325 acres in Belmont, Monroe and Jefferson counties – some of the best counties for natural gas production in the state – to Gulfport Energy Corp. one of the most-active oil and gas drillers in Ohio.

    The smaller part of the deal, $68.2 million, includes about 6,200 acres in Belmont and Jefferson counties. The major part – $319 million – includes 27,200 acres in Monroe County, with a fully built well pad with four wells and a gas-gathering system.  

    Rounding out the purchase is 1,900 more Monroe County acres for $19.4 million, contingent on American Energy completing the acquisition within a month.

    Once the deals go through, Oklahoma City-based Gulfport will hold 243,000 acres under lease in the heart of the shale play.

    McClendon's company is rapidly divesting Ohio land after quickly racking up leases after his departure from Chesapeake Energy Corp. (NYSE:CHK) in 2013. In April the company agreed to give 6,000 acres back to Chesapeake and pay $25 million in a partial settlement over a land dispute.
     
  • Aubrey making moves – Move #2.  There will be no more “Utica” for the company founded by shale wildcatter Aubrey McClendon.

    American Energy Appalachia Holdings LLC, which includes the American Energy-Utica subsidiary, will become Ascent Resources LLC and transition into a standalone company. The Oklahoma City company had been a key part of American Energy Partners LP, which has shale-specific companies throughout the U.S.

    Ascent was created in December when AEP’s Marcellus and Utica shale subsets merged. The company said it has contemplated making the new Ascent independent since McClendon founded it in September 2013.

    Company officials said late Tuesday they raised $1.4 billion.

    “We have what I believe are some of the very best assets in the Appalachian Basin and, therefore, the entire country,” CEO Jeffrey Fisher said in a statement.
     
  • Chevron selling more Marcellus acreage.  Chevron continues a slow bleed of selling Pennsylvania Marcellus Shale assets in 2015. In February the company put PA–just over 17,000 acres total (see Chevron Selling 17K Marcellus Shale Acres, More Sales Coming). In May, Chevron posted another 11,700 acres for sale in Clearfield and northern Cambria counties (see Chevron Shops Another 11,700 Marcellus Acres in Central PA). In June the company has just listed another 6,630 acres along with four drilled wells–all of it in Centre County.
     
  • EPA finds no problem with fracking.  The US Environmental Protection Agency has issued a long-awaited draft report on hydraulic fracturing (or fracking) which concluded that there is no evidence that fracking has “led to widespread, systemic impact on drinking water resources in the United States.”

    The report found that while there are several mechanisms by which fracking-related activities “have the potential to impact drinking water resources,” and there are anecdotal instances where one or more of those mechanisms led to contamination, the “number of identified cases” was “small compared to the number of hydraulically fractured wells.”

    Following a request from Congress in 2010, EPA took almost five years preparing the nearly 1,000-page report, which is entitled “Assessment of the Potential Impacts of Hydraulic Fracturing for Oil and Gas on Drinking Water Resources.”  The assessment represents a meta-analysis in which EPA attempted to review and synthesize the existing universe of scientific reports and evidence about fracking but without performing original research of its own.
     
  • Energy Transfer Partners to invest $1.5 billion.  Energy Transfer Partners LP announced that it will invest $1.5 billion for a new pipeline system and processing facilities to serve the Marcellus Shale in and around Butler County, Pennsylvania.  The new facilities are expected to be operational by mid-2017.  Natural Gas Intelligence reported that the pipeline and facilities are part of a long-term natural gas gathering agreement between ETP and EdgeMarc Energy to serve EdgeMarc’s active wells in the region, but the facilities are also expected to accept third party gas in the future.  The project plans include over 100 miles of high pressure pipeline and a cryogenic gas processing plant that will be located in western Pennsylvania near Butler County, providing an additional 440 MMcf/d of gathering capacity in the area.  The plant will deliver gas to ETP’s Rover pipeline, which is expected to deliver gas to markets in the Midwest, Great Lakes and Gulf Coast regions beginning in 2017.  ETP’s pipeline will also deliver natural gas liquids to the Marcus Hook Industrial Complex on the Delaware River, which is being repurposed for natural gas liquid storage, processing and distribution to foreign and domestic markets.
     
  • Broad support for Atlantic Coast Pipeline.  The recent Virginia poll indicated that 56 percent of the Virginia voters favored the Atlantic Coast Pipeline project, 70 percent in West Virginia and 55 percent in North Carolina. Interestingly enough, Hickman’s analysis showed that people from different groups supported the idea.

    “A measure of the breath of support is that almost as many self-identified liberals support the project as oppose it,” the group stated in the analysis.

    Overall, 74 percent of Republicans endorsed the project, with 54 percent of independents and 43 percent of Democrats saying they supported the start of construction. When asked why they supported the project, 31 percent said it was because of the potential benefits to the Virginia economy and the jobs it could bring to the area.

Rig Count

Baker Hughes Rigs count for the week June 12, 2015
     

  • PA
    • Marcellus 44 unchanged
    • Utica 2 unchanged
  • Ohio
    • Utica 21 down 1
  • WV
    • Marcellus 19 down 1
  • TX
    • Eagle Ford – 104 up 1
    • Permian Basin  189 unchanged
  • NM
    • Permian Basin – 43 down 1
  • ND
    • Williston – 76 unchanged
  • MT
    • Williston – 0 unchanged
  • CO
    • Niobrara –28 unchanged
       
  • TOTAL U.S. Rig Count 859 down 9

PA Permits for June 4 to June 11, 2015

       County                Township           E&P Companies

1.    Armstrong             Plumcreek          EQT
2.    Armstrong             West Franklin     Exco Resources
3.    Bradford                 Herrick              Southwestern
4.    Bradford                 Herrick              Southwestern
5.    Bradford                 Herrick              Southwestern
6.    Bradford                 Orwell               Southwestern
7.    Bradford                 Smithfield          Chesapeake
8.    Bradford                 Wilmot              Chesapeake
9.    Greene                  Center                Vantage
10.   Greene                  Center               Vantage
11.   Greene                  Center                Vantage
12.   Greene                  Cumberland        Ener. Corp. of Amer
13.   Lawrence               Neshannock       Hilcorp
14.   Lycoming               Eldred                Inflection Energy
15.   Washington            Amwell               Rice
16.   Washington            Amwell               Rice
17.   Washington            Amwell               Rice
18.   Washington            Amwell               Rice
19.   Washington            Jefferson             Range
20.   Washington            Jefferson             Range
21.   Wyoming                Meshoppen        Chesapeake
22.   Wyoming                Windham           Chesapeake
23.   Wyoming                Windham           Chesapeake
24.   Wyoming                Windham           Chesapeake

OH Permits – week ending June 6, 2015

       County             Township             E&P Companies

1.    Belmont             Pease                  Ascent Resources
2.    Belmont             Mead                   XTO
3.    Carroll                Harrison               Rex
4.    Carroll                Harrison               Rex
5.    Harrison             Monroe                Chesapeake
6.    Harrison             Monroe                Chesapeake
7.    Harrison             Monroe                Chesapeake


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

 

DUG Technology