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NewsLetters

Expo/Industry events for the next few months

Marcellus Utica Midstream
January 26-28
David L. Lawrence Convention Center
Pittsburgh, PA

http://www.marcellusmidstream.com/

Latest facts and a rumor from the Marcellus and Utica Shale

  • Eclipse Resource Looking to Sell.  Independent oil and gas producer Eclipse Resources is looking at selling the company, Bloomberg reported, citing anonymous sources.

    The State College, Pennsylvania-based company has been working with Morgan Stanley soliciting offers from competitors, Kallanish Energy understands.

    The company has been reaching out informally to potential suitors, but isn’t conducting a formal auction, the sources told Bloomberg. Eclipse has a market value of roughly $500 million.

    Representatives for Eclipse and Morgan Stanley declined to comment.

    Small, independent, cash-gobbling U.S. oil and gas producers, coping with depressed commodity prices, have been increasingly putting themselves on the block. Clayton Williams Energy said in October it is reviewing options and hired Goldman Sachs Group to explore a sale, while Rosetta Resources in July sold itself to Noble Energy for more than $3 billion.

    Eclipse, founded in 2011 with backing from private equity firm EnCap Investments, was one of numerous producers that raised debt and equity after energy prices collapsed last year, selling roughly $440 million of shares in a private placement in December.

    The company holds roughly 225,000 acres in the Utica and Marcellus Shale plays in eastern Ohio, according to its website. Its net loss dropped in the second quarter to roughly $42 million, from almost $113 million a year ago.

    While Eclipse may be looking to sell itself, it certainly is taking care of business.
     
  • Eclipse Resources Has Strong 3rd Qtr. Production.  Independent oil and gas producer Eclipse Resources, which is reported to be marketing itself to potential buyers, reported a 163% jump in third-quarter production from a year ago.

    The State College, Pennsylvania-based Company saw year-over-year triple-digit percentage increases in dry gas, natural gas liquids and crude, Kallanish Energy calculates.

    NGL production led the way, jumping 469.8%, to 663,200 barrels for the quarter, up from 116,400 Bbls one year ago. Crude production increased 232.3%, to 554,600 Bbls, from 166,900 Bbls, while natural gas was up a “paltry” 106.4%, to 13.4 billion cubic feet (Bcf), from 6.19 Bcf.

    Total quarterly production was pegged at 20.72 billion cubic feet-equivalent (Bcfe), from 7.89 Bcfe. Third-quarter production consisted of roughly 65% natural gas, 19% natural gas liquids and 16% oil.

    “During the third quarter, we were able to continue to set record quarterly production levels, producing over 225 MMcfe/d, while lowering our per unit operating expenses,” said Ben Hurlbert, Eclipse CEO.

    While production has jumped, the ongoing low-price scenario in commodities is forcing Eclipse to suspend its operated drilling program immediately, through the end of March.

    “We currently expect next year’s capital budget will be materially below this year’s budget while still providing substantial production growth and preserving our ability to significantly ramp our activity and future production when commodities recover,” Hurlbert said.

    The company raised its full-year 2015 production guidance by roughly 3%, to 202-205 MMcfe/d, while decreasing its full-year 2015 capital expenditure guidance by approximately 6%, to $330 million.

    “ECR reported solid third-quarter results,” Gabriele Sorbara, vice president, E&P at Topeka Capital Markets, said in a Thursday research note.

    “Positively, Eclipse dialed back its full 2015 capital expenditures guidance by roughly 6.3%, to $330 million and is targeting 2016 spending plans to come in “materially below” its 2015 budget,” Sorbara said.

    Sorbara expects Eclipse to have strong production growth in 2016, despite the lower planned spending levels.

    Eclipse’s third-quarter net loss more than quadrupled, to $81.47 million, from $19.05 million, as operating expenses more than doubled, to $123.46 million, from $60.81 million in the year-ago quarter.

    Third-quarter revenue nearly doubled, to $71.17 million, from $35.7 million, Eclipse said.
     
  • GET A JOB WITH HILCORP!  As several energy companies cut bonuses — and even jobs — amid the oil slump, one has rewarded employees with a hefty payout.

    Houston-based Hilcorp Energy Co., a privately held oil and gas exploration and production company, gave every employee a bonus of $100,000 for making the company’s five-year goals earlier this year, the Houston Chronicle and Fortune magazine report.

    The goals — to double Hilcorp’s oilfield production rate, net oil and gas reserves, and equity value over five years — had to be met by the end of 2015, but Hilcorp hit them in the spring, according to the Chronicle. The $100,000 was prorated based on time of service over the past five years, but employees of all job levels and titles were eligible for the bonus.

    Back in 2010, every employee received a $50,000 car or $35,000 in cash for reaching the previous five-year goals, according to Fortune, which named the company one of the "Best Workplaces for Diversity" for 2015. Over the summer, Fortune named Hilcorp one of the "Best Workplaces for Millennials," and the company ranked No. 20 on Fortune's overall "Best Companies to Work For" list.

    Hilcorp has about 1,400 employees, including 439 in Houston, according to the reports. The company is building a roughly 500,000-square-foot tower at 1111 Travis that will serve as its headquarters. However, CEO and billionaire Jeffrey Hildebrand has been tight-lipped about the project, which is on the site of the former downtown Macy's that was imploded in September 2013 to make way for the new building.

    Hilcorp isn't the only energy company doling out noteworthy bonuses lately. Paragon Offshore PLC offered some of its top executives an extra year's worth of salary to stay with the company for at least a year.
     
  • Marcellus NatGas Ready to Set Sail from Sabine Pass LNG Export Terminal. The Gulf Trace pipeline, owned by The Williams Companies, is set to feed into Cheniere Energy's Sabine Pass LNG export terminal in Louisiana. As first reported by Reuters, LNG tankers loaded with super-chilled liquefied natural gas obtained via hydraulic fracturing (“fracking”) will set sail for the first time from Sabine Pass in January 2016.

    In a statement, Williams said it had received approval for Gulf Trace from the U.S. Federal Energy Regulatory Commission (FERC) and had set a date of the first quarter of 2016for the project to be in service.  The statement said Gulf Trace was part of $5.1 billion worth of transmission projects targeting the eastern U.S.

    Gulf Trace will feed gas obtained from fracking in Pennsylvania's Marcellus Shale basin to Sabine Pass.
     
  • ExxonMobil and Shell buying Marcellus NatGas.   Swiss-based chemical company Ineos has struck a deal to supply subsidiaries of ExxonMobil and Shell in Scotland with ethane sourced from U.S. shale gas.

    Ineos will supply ethane to the Fife Ethylene Plant at Mossmorran in Scotland beginning in mid-2017, Kallanish Energy finds.

    The plant is owned by ExxonMobil Chemical Ltd. and Shell Chemicals Europe B.V.

    “We know that ethane from US shale gas has transformed U.S. manufacturing and we are now seeing this advantage being shared across Scotland,” said Geir Tuft, business director at Ineos Olefins & Polymers UK.

    This ethane gas will be shipped to Philadelphia and loaded on container ships that were built in Philadelphia.  Ineos is having eight container ships built.


     
  • Energy Transfer Pushing FERC for Rover Pipeline Approval by June.  Energy Transfer urged the Federal Energy Regulatory Commission on Monday to approve the Rover Pipeline project no later than June.

    The Texas-based company wants to build two 42-inch-diameter pipelines to carry natural gas from the Utica and Marcellus shales to customers in the Midwest, Great Lakes, Gulf Coast and Canada.

    The proposed route crosses parts of Stark, Carroll, Tuscarawas and Wayne counties. Rover would ship 3.25 billion cubic feet of natural gas a day.

    The company says summer construction would be safer for workers and the public, and cause less damage to farmland and the environment, according to paperwork filed with FERC.

    Energy Transfer says it’s essential the pipeline start carrying natural gas by January 2017 to meet market demand.

    Before the company can build the pipeline, FERC has to determine the project’s environmental impact. FERC staff plans to complete the review by July 29, and federal agencies would have until Oct. 27 to finish their own reviews.

    Rover staff has been in contact with FERC since June 2014 and formally applied in February for permission to build the pipeline. The company argues that “two years is a sufficient period of time” to review a project that will ease pipeline bottlenecks on Utica and Marcellus shale gas, and said it would respond promptly to environmental issues as they are raised.

    FERC spokeswoman Tamara Young-Allen said the commission hasn’t decided whether to modify the current review schedule.
     
  • Gulfport Energy 3rd Qtr. Update.  The company announced the news in a press release after the market closed Wednesday. Oklahoma City-based Gulfport will hold a conference call Thursday morning to discuss its third-quarter earnings.

    The company has drilled 209 wells in Ohio’s Utica Shale. That’s the second-highest number of any company.

    Gulfport produced 647.1 million cubic feet equivalent per day during the quarter. Utica Shale wells accounted for 97 percent of production.

    The company’s production mix was 81 percent natural gas, 12 percent natural-gas liquids and 7 percent oil.

    Gulfport started curtailing production by 100 million cubic feet equivalent per day at the beginning of the month.

    The company is running four horizontal rigs in the Utica. It drilled 15 gross wells and began production from 16 gross wells during the quarter. Well costs have decreased between 5 and 8 percent.

    In light of oil and natural gas prices, Gulfport won’t add a fifth Utica rig in early 2016. The company also will idle a completion crew.

    The company lost $388.2 million or $3.59 per share during the third quarter. Oil and natural gas revenue was $230.4 million.
     
  • Newly-Formed Lola Energy to target the Utica.  Over the past few weeks, the buzz around the Marcellus Shale has actually been about its deeper neighbor, the Utica, where a handful of companies have drilled record-setting wells for record-high costs.

    That has been making some people very nervous — not because the dry portion of the Utica underlying southwestern Pennsylvania, eastern Ohio and the West Virginia Panhandle might be too expensive to drill. Instead, it’s because, as some companies predict, it might soon be the least expensive.

    “If there’s a shoe to drop that makes things worse, it’s the dry Utica working,” said Jim Crockard, CEO of the newly-formed Marcellus startup Lola Energy Operating Co.

    Mr. Crockard founded Lola this summer with a handful of other former EQT Corp. executives looking to capitalize on good prospects left behind by operators that have had to cut back or vanish because of stubbornly low commodity prices. It’s been a tough market for everyone in the exploration and production business, from startups like Lola to mega-giants like Royal Dutch Shell.

    The glut of natural gas produced from shale wells over the past five years has inundated the market. Each new shale play seemed to outshine the last, with bigger wells and better economics. The price of natural gas futures at the national benchmark, Henry Hub, dipped below $3 per million British thermal units in January and has stayed there, inching closer to $2 in the past few months.

    Now, here comes the Utica, another giant gas field.

    The so-called dry portion of the Utica contains methane, the fuel used for heating and cooking. “Wet” portions contain methane as well as other natural gas liquids, including ethane and propane.

    “If it does work, if you start flooding the market with economic Utica wells,” Mr. Crockard said, the benchmark price of gas will stay at $2 per million British thermal units.

    More to the point: “It will wipe out all the economic Marcellus wells.”

    In July, Erika Coombs, senior energy analyst for Colorado-based BTU Analytics, predicted the success of the dry Utica — defined as the area becoming the lowest-cost source per molecule of natural gas — would be the death of the Haynesville Shale in Louisiana, which has been hanging by a thread since the Marcellus stole its thunder.

    “The last thing the market needs is another gas play as prolific as the Marcellus Shale,” she wrote at the time

    All the excitement and panic over the dry Utica is based on a lot of “ifs.

    If the companies can get their costs down from $30 million to around $13 million per well, and if all wells perform like EQT’s breakout Utica well in Greene County, Ms. Coombs said the Utica could disrupt the national market for gas in a few years’ time.

    But there have been fewer than 100 of these wells drilled in the tri-state area so far, and only a dozen or so have been publicized.

    “The dry Utica is still in the early innings and maybe you have some people rooting for it and some people rooting against it,” said Matt Hoza, also an analyst at BTU Analytics. “It’s a little too early to start getting really nervous about it.”

    Beyond the Appalachian Basin

    The Utica’s impact will reverberate beyond the Appalachian Basin, analysts warned.

    “In general, if you find more stuff, prices are going to be lower,” said Rusty Braziel, president and principal energy markets consultant for RBN Energy in Houston.

    But it’s more complicated than that.

    For more than a year, the Marcellus and Utica have been so productive that the pipelines available to ship it to other markets haven’t been able to keep pace. That has left Appalachian producers selling at a discount to other trading points and, crucially, below the national benchmark at Louisiana’s Henry Hub.

    Some worry that if the Utica works, it may push down the overall price of gas that would be needed for profitable development. Tim Dugan, Consol Energy Inc.’s COO of exploration and production, said he’s not concerned — not because it won’t happen but because his company can lean on the Utica if it does. In fact, Consol said its focus over the next several years will shift to the dry Utica.

    “Logic indicates that Utica development will displace other higher cost developments and not be additive,” he told investors last month.

    But there’s more at play than logic.

    Producers like to produce

    There are many reasons why oil and gas companies continue to drill wells and grow production when it seems counter to their interests.Some may have leases that would soon expire if not secured by a producing well. Some have loan covenants and joint venture agreements requiring a certain level of activity and reserves. Some simply have bills to pay and cutting production means cutting revenue.

    Plus, investors like growth.

    “(Exploration and production) companies are typically rewarded for production and finding new plays,” Ms. Coombs said. “From a market perspective, that’s terrible.”

    Even if the dry Utica works and depresses the overall breakeven price for gas wells, there are still plenty of economic Marcellus wells that could be drilled, according to Ms. Coombs.
    She estimates that in northeastern Pennsylvania, 1,200 wells were drilled through 2014 that made money with gas prices below $2/Btu. But there are another 3,000 locations where such wells haven’t been drilled yet, she said.

    That means even if producers were drilling solely on the economics, supply would remain robust.

    Perhaps the most detailed discussion of the Utica’s impact over the past few weeks came from Dave Porges, the CEO of EQT.

    “If the Utica does work,” he told analysts last month, “some of our other inventory that requires higher prices to make economic returns would be deferred possibly for many years.

    “The cannibalization of other opportunities will affect everyone including those of us who will be much better off if the deep Utica play does work economically,” he said.
     
  • Magnum Hunter May Be Filing for Bankruptcy.  Independent oil and gas producer Magnum Hunter Resources (MHR), which has stopped paying dividends, is selling assets and has hired advisors to boost its sinking financial position, may be out of options.

    As part of its quarterly results filing with the U.S. Securities and Exchange Commission, the Irving, Texas-based company warned its only path could be Chapter 11.

    Like many of its brethren, Magnum Hunter is between the proverbial rock – the demand for capital to conduct its operations – and the hard place – the economic realities of collapsed oil and gas prices.

    “As of Sept. 30, 2015, the company had $6.5 million in cash and a working capital deficit of $1,037.2 million [$1.04 billion], “the SEC filing states.

    At Sept. 30, Magnum Hunter was in default under its senior revolving credit facility and second-lien credit agreement.

    During the first quarter, Magnum Hunter suspended all drilling and said it didn’t expect to resume until its liquidity position has been stabilized.

    The New York Stock Exchange said Tuesday it would begin delisting the common stock of Magnum Hunter due to “abnormally low” price levels.

    “They have become a victim of the weak commodity prices in Appalachia,” Gabriele Sorbara, vice president, E&P at Topeka Capital Markets tells Kallanish Energy.

    Topeka dropped coverage of Magnum Hunter, effective Nov. 10, after the company released its third-quarter 10-Q, the NYSE delisting its shares, “and given the continued uncertainty surrounding management’s ability to execute on its liquidity initiatives, mainly the sale of its Eureka Hunter Midstream assets … .” according to Topeka.

    “Although the company has taken proactive measures … , including entering into such forbearance agreements, these factors raise substantial doubt about the company's ability to continue as a going  concern,” Magnum Hunter said in its 10-Q.

    Options for the company, according to the SEC filing: “liquidity-enhancing transactions the company  has commenced previously, as well as restructuring some or all of the company's debt and preferred equity to preserve cash flow, which may include seeking private restructuring or reorganization under Chapter 11 of the U.S. Bankruptcy Code."

    Magnum Hunter has operations in the Marcellus Shale in West Virginia and Ohio, the Utica Shale in southeastern Ohio and western West Virginia.

    We are not surprised by this announcement.  We, like a number of you, saw this coming.
     
  • Apache Rejects Offer.  The Houston, Texas-based Apache reportedly is working with financial adviser Goldman Sachs on defense, Bloomberg reported.

    Anadarko was the company that made a bid for Apache, but it was rejected.
     
  • Range Comments on NGL’s in the Eagle Ford.  A reduction in drilling in south Texas' Eagle Ford shale because of lower oil and gas prices will help reduce NGL production and bolster prices next year, Roger Manny, chief financial officer for Range Resources, told analysts today.

    "With reduced activity in the Eagle Ford, we anticipate better days ahead for NGLs to level the playing field here," Manny said during the Jefferies 2015 Energy Conference in Houston. EIA data shows crude production in seven major growth producing regions of the US topped out in the second quarter of this year amid weaker WTI prices.

    At the same time, Manny reiterated a focus away from wet gas regions in the Marcellus shale over the next year. Several producers in the region are drilling in drier areas because of weak NGL prices and poorer economics for fractionation and transportation costs.

    Range is a term contract holder on MarkWest's Mariner I project, which takes propane and ethane out of the Marcellus shale for export at the Marcus Hook terminal near Philadelphia, Pennsylvania. Manny reiterated MarkWest won't need any additional drilling in the Marcellus to meet its commitments on that line.

    "The ethane there is in the bag, and the propane we have coming on with Mariner East I; that volume is already covered by existing production, so we're not in a situation where we have to drill," he said. "So we can focus more on the dry (gas production) in 2016, so that's a good position to be in here."
     
  • Encana Happy in the Permian; To Increase Spending.  On Thursday morning, Canadian O&G producer Encana said it intends to accelerate capital spending in West Texas' Permian Basin, one of its core areas. The company plans to spend $150 million in the current quarter there that was originally designated for 2016. Encana expects total capital spending of $2.2 billion in 2015, which is the upper end of its 2015 guidance.

    CEO Doug Suttles has steered the company from natural gas to liquids over the past two years. Since the first quarter of 2014, for instance, Encana's liquids production has doubled. Its four core assets- the Permian, Eagle Ford, Duvernay, and Montney- have driven this liquids growth, contributing 80% of total Q3 liquids production. Production from these four assets increased 12% over the second quarter to 249,300 boepd. Further, total liquids production is up 10% in 3Q from the previous quarter, and up 35% y/y. Encana says it sees margin expansion to continue in 2016.

    After only 10 months, Suttles said Encana has emerged as the top tier operator in the Permian Basin. The company's decision to invest in "operational innovation...has delivered rapid and sustainable performance improvements and invaluable technical insight."

    Additionally, "Our continuous testing of well spacing, completions design and simultaneous operations is driving down costs; delivering better wells and helping us quickly discover optimal well designs in each of our core four assets."

    In 3Q, company drilled its latest pace-setting well in the Wolfcamp with a cycle time of 14 days. Encana also announced the "successful continuation of simultaneous operations with frac plugs drilled out on four wells simultaneously on the same pad." The company also ran six, 24-hour frac crews simultaneously over 10 days on six multi-well pads.

    Building on its Permian successes, Encana announced it has opted to accelerate activity in the basin originally scheduled for 2016 into 4Q15, increasing its 2015 investment in the play by $150 million. Encana expects to end the year around the upper end of its 2015 capital guidance range of $2.2 billion.

    Encana expects to drill 36 net wells and bring 30 on production in 4Q in the Permian, and says it's on track to deliver production of 50,000 boepd in the next quarter.
     
  • Dartmouth Study Demonstrates Economic Impact of Shale.  A new National Bureau of Economic Research study led by Dartmouth College experts examines the economic and job-creating impact of shale development, enabled by fracking, within 100 miles of active drilling locations.

    Commenting on the study’s findings, Dartmouth economics professor Bruce Sacerdote notes that “It’s surprising just how much of the revenue, how large the benefits are in the county and within 100 miles of the county.”

    Key study takeaways:
    • Over a third of fracking revenue stays within the regional economy.
    • Researchers analyzed data from oil and natural gas production from 2005 to 2012 and found that within 100 miles of new production, $1 million of extracted oil and gas generates $243,000 in wages, $117,000 in royalties and 2.49 jobs.
    • The impact on jobs and income at the state level was approximately five times larger than the county impact.
    • Within the county, every $1 million generates $66,000 in wage income, $61,000 in royalty payments and 78 jobs within the county.
    • With the creation of 725,000 jobs associated with the new oil and gas extraction between 2005 and 2012, the study findings indicate that U.S. unemployment was lowered by 0.5 percent during the Great Recession.


What’s more, shale development has helped drive U.S. CO2 emissions down to their lowest point in more than 20 years.

Here’s what they’re saying about shale’s “widespread” benefits:

  • Shale Production Brings “Widespread Economic Benefits”: The economic impacts from fracking extend far beyond the county where drilling activity is happening, according to a report. Dartmouth College researchers…found that the impact on wages and employment was many times larger at the regional and state levels than in the county where drilling occurred. The findings underscore the widespread economic benefits to areas that rode the boost from fracking activity to a faster post-recession recovery. … They found that $1 million of new production generated $66,000 in additional wages for oil and gas workers and service companies, $61,000 in royalty payments and 0.78 new jobs in the county where the drilling was taking place. There was even greater economic spillover to surrounding communities. Within a 100-mile radius, $1 million of production was associated with wage increases of $243,000, $117,000 in royalties and 2.49 jobs, an impact about three times as large as at the county level. The industry buffered energy-producing states from greater economic shocks during the Great Recession. … … “Every corner of the commonwealth is benefiting from the growth and success of this industry, as host counties and communities nearly 100 miles from well sites are seeing meaningful benefits,” said MSC’s Erica Clayton Wright. (Tribune-Review, 11/7/15)
  • Fracking “Blunted the Impact of the Financial Crisis”: A U.S. oil and gas drilling boom fueled by hydraulic fracturing technology added about 725,000 jobs nationwide between 2005 and 2012, blunting the impact of the financial crisis, according to a study released on Friday. … Researchers conducting the National Bureau of Economic Research study analyzed data from over 3,000 U.S. counties and determined that within 100 miles of new production, $1 million of extracted oil and gas generated $243,000 in wages, $117,000 in royalties and 2.49 jobs. “Aggregating to the national level we conclude that aggregate employment rose by 725,000 jobs due to fracking, causing a reduction in the U.S. unemployment rate of 0.5 percent during the Great Recession.” (Reuters, 11/6/15)
     
  • Permian Growing While Others Are Falling.  New federal data shows that the Energy Department expects drillers in the Permian Basin to push oil production in the shale play above 2 million barrels per day for the first time ever this November.

    The U.S. Energy Information Administration’s monthly Drilling Productivity Report released Monday, which covers seven of the biggest shale plays in the country, projects production in the Permian to jump by 17,000 bpd this month. That increase would bring the play above the 2 million bpd mark. In December, the EIA expects the play to grow again by 11,000 bpd.

    But the Permian is one of the outliers — the only other play expected to grow over the next two months is the Utica in the Appalachian region. Combined with the other five plays — the Eagle Ford, Bakken, Haynesville, Marcellus and Niobrara plays — oil output overall is projected to fall to 4.95 million bpd the end of the year. That would be a fall of nearly 560,000 bpd from an April 2015 peak of 5.51 million bpd.

    The Eagle Ford in South Texas has had the biggest impact on overall U.S. production growth. The EIA projects output in the Eagle Ford to fall 436,000 bpd by December from a peak of 1.71 million bpd in March.
     
  • Rex 3rd Qtr. Update.  Rex Energy lost $97.1 million during the third quarter even as its oil and natural gas production grew.

    Rex is based in State College, Pennsylvania. The company has drilled 34 wells in Ohio’s Utica Shale.

    The company’s loss works out to $1.80 per basic share, according to a press release. Rex officials will discuss the company’s quarterly results during a conference call Tuesday.

    Rex produced 194.3 million cubic feet equivalent of natural gas per day during the quarter, an increase of 15 percent over the same period last year.

    The production mix consisted of 116.6 million cubic feet per day of natural gas and 12,900 barrels of oil equivalent per day of liquids. Oil, condensate and natural-gas liquids accounted for 40 percent of production during the quarter.

    Production included the company’s first dry-gas Utica Shale well in western Pennsylvania’s Lawrence County. Rex drilled the Patterson 2H well to a lateral length of 6,700 feet and fracked it in 45 stages. The well had a 24-hour production rate of 11.4 million cubic feet equivalent of natural gas.

    During the quarter, the company spent approximately $37.1 million in capital on operations, including $33.5 million to drill 10 gross wells, frack 11 gross wells and begin production from nine gross wells in the Marcellus and Utica shales.

    Rex has increased its capital budget for this year to about $160 million, saying it plans to drill and complete three additional wells to take advantage of operational efficiencies and accelerate the amount of acreage the company holds by production.

    But production is expected to drop in the fourth quarter. A processing plant will be shut down for six days to commission a new unit and the six-well Grunder pad in Carroll County will be shut in to drill a new well.

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Rig Count

  • Baker Hughes Rig Count the week of November 13, 2015
     
  • PA
    • Marcellus 27 unchanged
    • Utica 1 unchanged
  • Ohio
    • Utica 20 unchanged
  • WV
    • Marcellus 16 unchanged
  • TX
    • Eagle Ford – 73 up 1
    • Permian Basin  193 down 4
  • NM
    • Permian Basin – 36 up 1
  • ND
    • Williston – 62 down 1
  • CO
    • Niobrara – 26 unchanged
       
  • TOTAL U.S. Rig Count 734 down 5

PA Permits for November 5, to November 12, 2015

      County            Township                E&P Companies

1.    Beaver                New Sewickley            PennEnergy
2.    Beaver                New Sewickley            PennEnergy
3.    Bradford            Orwell                SWN
4.    Bradford            Orwell                SWN
5.    Bradford            Orwell                SWN
6.    Bradford            Orwell                SWN
7.    Bradford            Orwell                SWN
8.    Butler                Clinton                PennEnergy
9.    Butler                Clinton                PennEnergy
10.    Butler                Jefferson            PennEnergy
11.    Butler                Jefferson            PennEnergy
12.    Clearfield            Girard                Energy Corp of Am.
13.    Greene                Washington            EQT
14.    Jefferson            Falls Creek            EQT
15.    Tioga                Charleston            Shell
16.    Tioga                Sullivan            Shell
17.    Washington            Amwell                EQT
18.    Washington            Amwell                EQT
19.    Washington            Amwell                EQT
20.    Washington            Amwell                EQT
21.    Washington            Amwell                EQT
22.    Washington            Amwell                EQT
23.    Washington            Nottingham            EQT
24.    Washington            Nottingham            EQT
25.    Washington            Nottingham            EQT
26.    Washington            Nottingham            EQT
27.    Washington            Nottingham            EQT
28.    Washington            Nottingham            EQT

OH Permits – week ending November 7, 2015

      County               Township                E&P Companies

1.    Belmont                York                    Rice
2.    Belmont                York                    Rice
3.    Belmont                York                    Rice
4.    Belmont                York                    Rice
5.    Belmont                Somerset                Gulfport
6.    Belmont                Somerset                Gulfport
7.    Belmont                Somerset                Gulfport
8.    Belmont                Somerset                Gulfport
9.    Belmont                Somerset                Gulfport
10.    Belmont                Somerset                Gulfport
11.    Columbiana            Franklin                Chesapeake
12.    Columbiana            Franklin                Chesapeake

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

Midstream PA