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Expo/Industry events for the next few months

Midstream PA 2018
September 25, 2018
Penn Stater Conference Center
State College, PA
http://midstreampa.com/

WV Energy Expo 2018
October 3, 2018
Hazel and J.W. Ruby Community Center
Morgantown, West Virginia
http://wvenergyexpo.com/

Utica Summit
October 10, 2018
Walsh University
North Canton, OH
http://www.uticasummit.com/

Shale Insight
October 23-25, 2018
David Lawrence Conference Center
Pittsburgh, PA
http://shaleinsight.com

 For other events visit http://www.shaledirectories.com/site/oil-and-gas-expo-information.html

Latest facts and a rumor from the Marcellus, Utica, Permian, Eagle Ford, Bakken and Niobrara Shale Plays

EdgeMarc Leasing Land in Butler County, PA.    We have heard that EdgeMarc Energy is looking into leasing land in Fairview Township, Butler County PA.   Chevron previously had leases in this area.  (RUMOR)

Atlantic Sunrise in Service Late August.  Williams Partners on Wednesday announced construction on the $3 billion Atlantic Sunrise Pipeline is nearing completion and the project is expected to go into service in late August, Kallanish Energy reports.

The project which moves through five Eastern states is targeted for mechanical completion beginning in August 2018, it said. That could change, depending on weather.

Full-service of 1.7 billion cubic feet per day is likely to begin in the second half of August, pending final regulatory approvals, the Oklahoma-based company said. That is enough natural gas to serve 7 million homes.

The pipeline is seen as a key link to move Appalachian Basin natural gas from the Marcellus shale in northeast Pennsylvania to markets in the Mid-Atlantic and Southeastern U.S.

It will move natural gas from northeast Pennsylvania to Lancaster County, Pa., where it will connect to an existing pipeline.

At present, the mainline of the project is moving about 550,000 cubic feet of natural gas per day.

The project includes installation of nearly 200 miles of pipeline, pipeline loops, two new compressor stations and modifications to existing compressor stations in Pennsylvania, Maryland. Virginia, North Carolina and South Carolina.

The segment of the project known as the Central Penn Line will be jointly owned by Williams’ subsidiary Transcontinental Gas Pipe Line Co. (Transco) and a third party, Williams Partners said.

The project is adding bi-directional flow on the existing Transco system.

The Federal Energy Regulatory Commission approved the project in February 2017.

Some of the natural gas flowing on Atlantic Sunrise may be exported as liquefied natural gas at Cove Point LNG in Maryland.

BP Makes Big Purchase in the Permian.  British oil major BP announced Friday it has acquired BHP’s U.S. onshore assets for $10.5 billion, putting an end to speculation on the long-awaited deal, Kallanish Energy reports.

The package includes tight oil assets in the Eagle Ford and Permian basins, as well as shale assets in Haynesville. These will add 190,000 barrels of oil equivalent per day (BOE/d) to BP’s production and 4.6 billion barrels of oil equivalent (BBOE) in resources.

“This is a transformational acquisition for our Lower 48 business, a major step in delivering our upstream strategy and a world-class addition to BP’s distinctive portfolio,” said CEO Bob Dudley.

The acquisition is accretive to earnings and cash flow, BP said, noting it increases the Upstream cash flow target by $1 billion to $14-15 billion in 2021, and is expected to bring synergies of $350 million annually.

Wood Mackenzie’s senior analyst, Maxim Petrov, believes “the most valuable part of the package is BHP’s Eagle Ford position given its scale and attractive economics. But the Permian acreage offers the biggest longer-term upside, with some of the best breakevens in the play, well below $50/Bbl Brent."

"Similarly, the Haynesville assets have some of the most attractive shale gas economics outside the Marcellus, and nicely complement BP’s existing acreage in the play,” he added.

Under the terms of the agreement, BP will pay $5.25 billion at completion — slated for October — and the remaining $5.25 billion in instalments over six months. BP America Production Company will acquire from BHP Billiton Petroleum Inc. 100% of the issued share capital of Petrohawk Energy Corporation – the wholly-owned subsidiary of BHP which holds the assets.

Chesapeake Selling Utica Assets.  Oklahoma-based Chesapeake Energy announced on Thursday that it is selling its Utica Shale position in Ohio for $2 billion, in a move to reduce the company’s debt, Kallanish Energy reports.

The buyer is Encino Acquisitions Partners, a private oil and gas company with headquarters in Houston.

The assets being sold include 900,000 acres in eastern Ohio, plus 920 operated and non-operated horizontal wells that produced an average of 107,000 BOE per day.

Those wells produced 67% natural gas, 24% natural gas liquids and 9% oil. They produce about 600 million cubic feet of gas equivalent per day.

Chesapeake said about 322,000 acres in the prime Utica commercial window for drilling.

It said the proved oil and gas reserves in the Utica Shale, as of Dec. 31, 2017, were about 480 million BOE (72% natural gas, 23% NGLs and 5% oil).

Chesapeake said it is selling its total acreage in Ohio.

It had purchased significant tracts in eastern Ohio, starting in 2010 under then-Chesapeake CEO Aubrey McClendon, who died in 2016.

The deal is expected to close in fourth quarter 2018.

The announcement “makes Chesapeake a stronger and more competitive company,” said president and CEO Doug Lawler in a statement.

“By divesting our position in the Utica and using the proceeds for debt reduction, we will not only significantly improve the health of our balance sheet, but we will also accelerate progress toward our strategic goals of reducing our debt, improving our margins and reaching sustainable free cash flow,” he said.

He said the Utica was the best company asset to sell and that leaves Chesapeake with five strong assets for future growth, Lawler said.

The deal was his biggest transaction in three years at the reins of Chesapeake, the third largest gas producer in the U.S.

Encino is a 2017 creation of the Canada Pension Plan Investment Board and a Houston-based management team led by Hardy Murchison.

The pension board plans to invest $1 billion into the partnership and own 98 percent of it, according to a separate statement.

“At EAP, Encino and CPPIB are building a company focused on shareholder returns with top-notch people, carefully managed risk and sustainable, safe operations,” said Hardy Murchison, Encino’s CEO, in a statement.

He added, “With a multi-decade inventory of development projects held by 920 producing wells, the Utica acquisition provides an excellent start for EAP. We are excited to work with Chesapeake’s employees in the Utica and all other stakeholders in the state of Ohio. With a strong balance sheet and a partner of CPPIB's stature, EAP is well positioned for continued growth through drilling and acquisitions.”

“We are pleased to support EAP’s acquisition of these highly attractive Utica Shale assets, which provides CPPIB with meaningful exposure to a leading North American natural gas play and aligns with the growing focus on energy transition,” said Avik Dey, managing director, Head of Energy & Resources, CPPIB, in a statement.

He added, “This transaction represents a unique opportunity to acquire a foundational asset that has a large inventory of wells with a well-established production history and will be managed by Encino, whose management has deep operational and development expertise in the Appalachian region.

“Through EAP, we are continuing to efficiently expand our energy and resources portfolio in key U.S. energy markets as we seek to further diversify the CPP Fund. We look forward to building on our ongoing partnership with Encino to pursue high-quality energy assets in the lower 48 states,” he said.

Chesapeake said it expects to apply $1.9 billion in initial closing proceeds toward debt reduction.

The purchase price includes a $100 million contingent payment based on future natural gas prices.

The deal provides up to $180 million reduction in annual interest expense, the company s id.

The deal provides a reduction of $450 million that Chesapeake would have spent on gathering, processing and transportation for an expected improvement of 50 cents per barrel of oil equivalent.

It also eliminates all future Utica midstream and downstream commitments of about $2.4 billion, Chesapeake said.

It improves Chesapeake’s EBITDA by about 70 cents per BOE in 2019, due to lower cash operating costs and improved oil differentials, assuming flat 2018 commodity prices, the company said.

It said it expects organic replacement of divested EBITDA within one year, driven primarily by oil volume growth in the Powder River Basin in Wyoming.

Chesapeake reported that it expects its 2019 oil production volume to grow by 10% from 2018, adjusted for asset sales, with additional oil growth anticipated in 2020.

EQT 2nd Qtr. Update.  Sales volumes for Pittsburgh-based EQT were up sharply in the second quarter, but the company’s net income was down because of higher operating costs, Kallanish Energy reports.

The company, a natural gas giant in the Appalachian Basin, reported net income of $17.6 million or 7 cents a share in the quarter.

That compares to a net income of $41 million or 24 cents a share in 2Q 2017.

The company’s sales volume in the 2Q grew to 362.5 billion cubic feet of equivalent. That is up from 198.1 Bcfe in 2Q 2017.

EQT reported that its operating expenses nearly doubled from 2Q 2017 to 2Q 2018. They went from $578.2 million in 2Q 2017 to $1.030.5 billion in 2Q 2018.

Operating income went from $52.9 million in 2Q 2017 to a loss of $79.5 million in 2Q 2018, a difference of $132.7 million. That was due to higher operating costs and an impairment charge, the company said.

In 2Q 2018, EQT drilled or spud 35 Marcellus Shale wells, three Upper Devonian wells and 10 Utica wells in Ohio.

It also turned on for production 44 Marcellus wells, five Upper Devonian wells and five Utica wells.

To date, the company has drilled 1,791 horizontal Marcellus wells in the Appalachian Basin with 1,482 of those wells in service. Forty wells have been completed but are not yet online, and 269 wells are drilled but not yet completed.

In addition, it has drilled or spud 253 Utica Shale horizontal wells in Ohio, of which 205 are in service. Another 14 wells are completed but not yet in service., and 34 wells have been drilled but are not yet completed.

EQT reported that the $3.5 billion Mountain Valley Pipeline now anticipates beginning service in first quarter 2019.

Previously, the companies behind the project had said the pipeline was expected to be in service in late 2018.

The 303-mile natural gas pipeline will run from West Virginia to southern Virginia.

It will carry natural gas from the Marcellus and Utica shales from Wetzel County, W. Va., to Pittsylvania County, Va.

Mountain Valley Pipeline is a joint venture of six companies and will be operated by EQT Midstream.

It will move 2 billion cubic feet per day.

EQT also reported that it plans to retain 19.9% of the shares of the new midstream company, SpinCo.  That will be spun off to EQT stockholders. The company said it plans to dispose of its share after the spinoff.

The proceeds will be used to reduce the company’s debt and to fund a stock buyback program.

In the 2Q, EQT also completed a $64 million sale of Permian Basin assets in West Texas and a $575 million Huron Shale sale in the southern Appalachians.

PA DEP Issues Another Violation.  Pennsylvania environmental regulators this week issued another notice of violation to Energy Transfer Partners LP's Sunoco Mariner East 2 natural gas liquids pipeline for spilling drilling fluid in a wetland.

It was the 65th notice of violation the Pennsylvania Department of Environmental Protection (DEP) issued the project since construction began in February 2017.

As with other recent notices of violations, the DEP said ETP must provide a report describing how it will clean the spill, among other things, before it will allow the company to restart drilling at the site.

Pipeline companies use horizontal drilling to cross under obstacles like highways and rivers.

Those work stoppages, among other things, have significantly slowed progress on the $2.5 billion Mariner East 2 project, which ETP had planned to complete in the third quarter of 2017 but now expects to put in service in the third quarter of 2018.

Those delays have forced some gas producers, like Range Resources Corp, to find another home for their liquids.

The Mariner East project transports liquids from the Marcellus and Utica shale fields in western Pennsylvania to customers in the state and elsewhere, including international exports from ETP's Marcus Hook complex near Philadelphia.

The latest notice of violation was for a spill of about 3,500 gallons of drilling fluid into a wetland associated with horizontal drilling on July 11 in Jackson Township in Cambria County about 70 miles (110 km) east of Pittsburgh.

Analysts have noted the state was citing ETP for some spills as small as 1 gallon likely due to increased scrutiny the Mariner project has received as it racks up a large volume of permit violations.

Overall, the company has reported 111 spills into waters in the state and 91 spills in upland regions, according to the DEP, which included some of the same spills on both waters and upland reports.

Mariner East 1 started service in the 1930s transporting refined products from the Philadelphia area to western Pennsylvania. It was repurposed and expanded to transport propane in 2014 and ethane in 2016 from western Pennsylvania to customers in the eastern part of the state.

Mariner East 2 will boost capacity of the Mariner East project from 70,000 barrels per day (bpd) to 345,000 bpd and open the pipeline to suppliers in Ohio and West Virginia. Mariner East 2X, which is expected to enter service in mid-2019, will add another 250,000 bpd.

ExxonMobil’s New Cracker in TX.  ExxonMobil announced on Thursday that operations have commenced at its new multibillion-dollar ethane cracker at the company’s integrated Baytown chemical and refining complex in Texas, Kallanish Energy reports.

The new cracker has a capacity of 1.5 million tons per year.

It will provide ethylene feedstock to new performance polyethylene lines at the company’s Mont Belvieu plastics plant, which began production last fall. It is one of the largest polyethylene plants in the world with a manufacturing capacity of about 1.3 million tons per year.

“Our new ethane cracker will help us meet the growing global demand for high-performance plastic products that deliver key sustainability benefits such as lighter packaging weight, lower energy consumption and reduced emissions,” said John Verity, president of ExxonMobil Chemical Co., in a statement.

“The abundance of domestically produced oil and natural gas has reduced energy costs and created new sources of feedstock for U.S. Gulf refining and chemical manufacturing while creating jobs and expanding economic activity in the area,” he said.

Together, the Baytown ethane cracker and the Mont Belvieu plant represent ExxonMobil’s largest chemical investment in the U.S., to date.

Building the plant created 10,000 construction jobs.

The plant will employ about 350 workers.

Fighting Over Frack Water in the Permian.  In the vast, high desert of southeastern New Mexico, underground aquifers are a vital source of water for drinking and agriculture. Groundwater has also become essential to a booming oil business, which is sprawling across the border from Texas and needs the water for hydraulic fracturing ("fracking") operations. Oil well fracking requires large amounts of water, which is injected underground to break up and mobilize the underground petroleum resource. In many parts of this region, without water for fracking, there is no access to oil. But because of differences in state law, oil companies have found the groundwater harder to access in New Mexico. So they are laying pipes across the state line, pumping groundwater in Texas to serve oil wells in New Mexico. Unfortunately, all the groundwater comes from the same aquifer—the Pecos Valley Aquifer—that straddles the state line. And some officials in New Mexico fear that groundwater pumping on the Texas side will eventually deplete the aquifer on the New Mexico side.

Tailwater Raises $1 Billion for Pipelines.  U.S. energy-focused private equity firm, Tailwater Capital, announced Tuesday it has raised $1 billion for its biggest fund to date, betting on growing demand from the midstream sector, Kallanish Energy reports.

The firm closed its Energy Fund III with a hard-cap of $900 million and raised a $100 million co-investment for a platform company in the fund. Since its launching in 2013, the firm raised more than $2.7 billion across its funds and co-investments, but the latest fund was the largest.

“Tailwater will continue to focus on acquiring and growing midstream assets as well as participating in non-operated upstream opportunities in select basins, through the firm's E&P Opportunity funds,” it said in a statement.

The deal shows how private equity firms are looking to invest in pipeline assets amid ongoing bottlenecking and under capacity, straining crude oil areas such as the Permian Basin. Tailwater, which has six platform companies, didn’t specify where it would target investments.

Edward Herring, co-founder and managing partner of Tailwater, said Energy Fund III allow the energy buyout firm to continue building leading companies in the midstream sector. “As evidenced by our deployment so far, there are unparalleled opportunities to put capital to work addressing the significant demands for midstream infrastructure,” he said.

The portfolio of the Dallas-based firm includes Align Midstream, Copperbeck Energy Partners, Cureton Midstream, Valiant Midstream, amongst others. It also has two upstream platforms – Blackbrush Oil and Gas and Pivotal Petroleum Partners.

WV Cites Mountain Valley.  West Virginia regulators have again cited the Mountain Valley pipeline for water quality violations at a construction site. The notice of violation from the state Department of Environmental Protection was its fifth since April. The inspection report and violation notice were filed Thursday with the Federal Energy Regulatory Commission. The notice says pipeline crews failed to properly maintain erosion control devices, so sediment deposits were released into two nearby tributaries. Mountain Valley pipeline has 20 days to respond and address the documented problems. A spokesman for the project didn't immediately respond to a request for comment. Once complete, the pipeline will traverse 300 miles from West Virginia to Virginia, crossing 600 streams and over 400 wetlands along its route.

FERC and DOT to Simplify Permit Apps. Two federal agencies have pledged to simplify the permit application review process for liquefied natural gas (LNG) facilities, Kallanish Energy reports.

The Federal Energy Regulatory Commission and the U.S. Department of Transportation’s Pipeline and Hazardous Materials Safety Administration have agreed to develop a memorandum of understanding to refine and modify the existing application process.

The memorandum will clarify each agency’s respective role in the permitting process for potential LNG projects and implement procedures into FERC’s authorization process that will leverage PHMSA’s safety expertise to evaluate potential impact to public safety, the two agencies said in a joint statement.

“PHMSA is pleased to work with FERC to advance critical infrastructure projects that support our nation’s growing energy dominance in the safest and most efficient way possible,” said PHMSA Administrator Skip Elliott said in a statement.

FERC Chairman Kevin McIntyre had announced the planned memorandum last week.

FERC Wants to Expand Cyberattack Reporting.  The Federal Energy Regulatory Commission wants to expand cyber security incident reporting, Kallanish Energy reports.

Last week, the federal agency directed the North American Electric Reliability Corp., the nation’s electric reliability organization, to develop modifications within six months to the Critical Infrastructure Protection Reliability Standards to improve mandatory reporting of cyber-attacks against utilities and the electric grid.

At present, federal rules only require reporting when the incidents have compromised or disrupted one of more reliability tasks.

That means unsuccessful attacks are not reported and that could lead to understating the scope of attacks and the risk to the power system, FERC said.

“Cyber threats to the bulk power system are ever changing, and they are a matter that commands constant vigilance,” said FERC Chairman Kevin McIntyre, in a statement. “Industry must be alert to developing and emerging threats, and a modified standard will improve awareness of existing and future cyber security threats.”

FERC had suggested such a change last December.

The final rule will take effect 60 days after publication in the Federal Register.

Williams Takes Constitution Pipeline to Federal Court.  Federal Energy Regulatory Commission (FERC) rejected Williams’ request to rehear an earlier decision to not overrule the New York Dept. of Environmental Conservation’s (DEC) decision to block the Constitution Pipeline. We personally don’t see many (really any) pathways where the Constitution now gets built. But to their credit, Williams is not giving up. After FERC’s decision last week, the company announced it will appeal that decision to the D.C. Circuit Court of Appeals, asking the judges to overrule the DEC (bypassing FERC). Williams has filed in various courts, including the Supreme Court, to hear the Constitution case. Why not try the D.C. Circuit Court? There’s really nothing to lose. The project is currently as dead as a doornail anyway. So, hats off to Williams for giving it one last try.

Successful Young E&P Company. (Thanks, MDN)  Northeast Natural Energy (NNE) is a small-to-midsized driller headquartered in Morgantown, WV. It’s a young company, drilling its first shale well in 2013. In April 2017 MDN reported that NNE had obtained $300 million of investment from two investment firms (see WV Driller Northeast Natural Energy Gets $300M Investment). They’ve put the money to good use. NNE owns 56,000 acres of leases “in the heart of the Marcellus Fairway,” with 44,000 acres in WV and 12,000 acres in Southwestern  PA. The company has drilled and brought online 57 shale wells. By this time next year the company expects that number to be nearly 100. One of the most interesting things about NNE is it’s involvement with government and university researchers. NNE drilled several test shale wells near Morgantown. The wells are part of an ongoing laboratory experiment that measures and pokes and prods everything, in an effort to learn more about shale drilling and its impacts. NNE’s test wells are a sort of living fracking petri dish. Reams of data pour in and get analyzed. Our friends at Kallanish Energy have done a deep dive into NNE.

More LNG to Europe.  The United States and the European Union have agreed to work towards boosting natural gas trade, an issue that President Donald Trump pressed forcefully at this month's NATO meeting in Brussels. Specifically, Juncker said the EU will build more terminals to import liquefied natural gas, or LNG, a form of the fuel super-chilled to liquid form for shipment by sea. He did not specify whether he was referring to new terminals in addition to those already planned, or whether the EU would invest in the large on-shore plants or more affordable floating facilities.

Drilling Safe PA Forests and Waterways.  Pennsylvania's state forests agency says it isn't finding damage to waterways amid the expansion of natural gas drilling in recent years, although it is reporting a growth of invasive plants where land is being cleared. The Department of Conservation and Natural Resources said Wednesday in a new report that its water chemistry analysis hasn't provided evidence that shale gas development has degraded the quality of waterways in state forests in the core gas forest districts.

Mountain Valley Pipeline Delayed.  Completion of Mountain Valley Pipeline delayed to early 2019, even with long work days. Roanoke Times.   Construction of the Mountain Valley Pipeline will continue into 2019, longer than expected and sometimes with 15-hour workdays that are irking its neighbors. Shareholders of NextEra Energy, one of the pipeline’s developers, were told Wednesday that an anticipated completion date of late this year is no longer viable for the massive natural gas pipeline. Work on the pipeline “has faced some recent challenges,” John Ketchum, executive vice president and chief financial officer of NextEra Energy, said during a quarterly earnings conference call. He cited a stay issued by a federal appeals court that put a hold on stream crossings the buried pipeline must make in West Virginia.

New Mexico Becoming Player in the Permian.  Oil and gas drilling rigs are at an all-time high in New Mexico, as Baker Hughes reported 103 rigs throughout the state – the highest number in more than three years. The recent data places New Mexico as third in the nation for active drilling rigs, following an increase of four rigs from the 99 reported by Baker Hughes on July 6. Ryan Flynn, executive director of the New Mexico Oil and Gas Association said the increase in rigs will benefit New Mexicans by creating more state revenue and subsequently allowing the State to provide better services to residents.

FERC Approves Atlantic Coast Pipeline in NC.  Federal Energy Regulatory Commission issued permission on Tuesday to Dominion Energy to commence construction of the 600-mile, $6 billion Atlantic Coast Pipeline as it passes through North Carolina. Antis like those from the Southern Environmental Law Center are up in arms. Their strategy to stop the project is to attack it in small specific areas. There is a pending lawsuit against the project using the Endangered Species Act, potentially blocking construction in certain geographies. If that lawsuit goes against the pipeline, it only affects construction in a small area and for a limited time. Yet Southern Environmental Law Center claims that if a pipeline project is stopped at any point along its route that should trigger stopping the entire project at all points along the route. FERC isn’t buying into the legal bull and has cleared Dominion to start up the bulldozers. This pipeline will get built, despite the best efforts of antis. In fact, Dominion says it will be built and online by late 2019.

Big Production Jump in the Bakken.   Continental Resources reported that its second quarter 2018 daily crude oil production jumped 25%, Kallanish Energy reports.

The company said 2Q oil production totaled 25.8 million barrels of oil equivalent or 284,059 Boe per day.

It said the daily average oil production totaled 157,000 barrels per day, a 25% jump from 2Q 2017.

“We expect to see a significant uplift in oil production growth in the second half of 2018, driven by our large Bakken pads and our Springer, Woodford and Sycamore assets in Project Springboard,” said chairman and CEO Harold Hamm in a statement.

“These assets will not only drive a new wave of oil production in the second half of 2018 but will also provide a catalyst for strong oil-weighted growth in 2019,” he said.

Project Springboard is located in Oklahoma.

The company said it expects production in early July to average 296,000 to 298,000 Boe per day as additional Bakken pads begin production.

It said Bakken oil production in early July is averaging 166,000 barrels per day in July, a 25% increase from a year earlier.

For the balance of 3Q 2018, Continental expects oil production to average 290,000 to 295,000 Boe per day with oil approaching 57% of production.

The company said it expects oil to account for 58% to 60% of production in the fourth quarter

The company said 2Q 2018 production would have been more than 289,000 Boe per day except for abnormally wet weather in the Bakken Shale in North Dakota and Montana and the voluntary curtailment of Midcontinent production to gain access to premium North Texas markets via the company’s previously announced Wildcat pipeline agreement.

In June, the company got a 25 cent per MMBtu uplift versus selling in-basin, Continental said.

It said it expects to get 31 cents uplift per MMBtu in July versus selling in basin.

Hess 2nd Qtr. Update.  Hess Corp. on Wednesday posted a smaller quarterly loss, even as production fell and that is due to higher U.S. oil prices, Kallanish Energy reports.

The company said its average realized crude oil price jumped 36% to $62.65 per barrel in the second quarter. That is up sharply from the $45.95 per barrel a year ago.

Crude oil prices rose more than 18% in the second quarter and topped $75 at the end of June.

The company reported a 2Q 2018 net loss of $130 million or 48 cents a share. That compares to a net loss of $449 million or $1.46 per share in 2Q 2017.

The adjusted net loss was $56 million or 23 cents a share in 2Q 2018.

Net production in 2Q 2018 averaged 247,000 barrels of oil equivalent per day (excluding Libya). That dropped from 294,000 boe/d in 2Q 2017.

Its Bakken production in North Dakota and Montana was 114,000 barrels of oil equivalent per day, up 6% from 108,000 boe/d in 2Q 2017.

The company operated four rigs in the Bakken in the second quarter, drilling 28 wells and bringing 27 new wells online, it reported.

It has added a fifth rig and plans to add a sixth rig early in the fourth quarter.

The company is planning full-year 2018 Bakken production of 115,000 to 120,000 boe/d.

Production was curtailed slightly in the Bakken in second quarter by bad weather in June, the company said.

“We delivered strong operational performance in the quarter, exceeding our production guidance, and further focused our portfolio with the sale of our joint venture interests in the Utica,” said CEO John Hess in a statement.

That $400 million Utica deal is expected to close in the third quarter 2018.

The company is also enthused by the oil prospects offshore Guyana, he said.

It also reported that Gulf of Mexico production restarted in mid-July at the Conger Field, following repair of the third-party-operated Enchilada platform. That platform had been shut-in since 4Q 2017.

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PA Permits July 12, to July 26, 2018

County                                   Township                                          E&P Companies

  1. Butler                                           Parker                                                EM Energy PA
  2. Greene                                         Aleppo                                               Rice
  3. Greene                                         Aleppo                                               Rice
  4. Greene                                         Aleppo                                               Rice
  5. Greene                                         Aleppo                                               Rice
  6. Jefferson                                     McClamont                                        XTO
  7. Jefferson                                     McClamont                                        XTO
  8. Jefferson                                     McClamont                                        XTO
  9. Jefferson                                     McClamont                                        XTO
  10. Jefferson                                     McClamont                                        XTO
  11. Potter                                            Pike                                                    JKLM
  12. Potter                                            Pike                                                    JKLM
  13. Potter                                            Pike                                                    JKLM
  14. Potter                                            Pike                                                    JKLM
  15. Potter                                            Ulysses                                              JKLM
  16. Tioga                                            Liberty                                                Rockdale
  17. Washington                                North Strabene                                 Rice
  18. Washington                                North Strabene                                 Rice
  19. Washington                                North Strabene                                 Rice
  20. Washington                                North Strabene                                 Rice
  21. Washington                                North Strabene                                 Rice
  22. Washington                                North Strabene                                 Rice
  23. Westmoreland                            Penn                                                  Apex
  24. Westmoreland                            Penn                                                  Apex
  25. Westmoreland                            Penn                                                  Huntly & Huntley
  26. Westmoreland                            Upper Burrell                                                Huntly & Huntley
  27. Westmoreland                            Upper Burrell                                                Huntly & Huntley

OH Permits for weeks ending July 14, & 21, 2018

County                                   Township                                          E&P Companies

  1. Jefferson                                     Mt. Pleasant                                      Ascent
  2. Jefferson                                     Mt. Pleasant                                      Ascent
  3. Jefferson                                     Mt. Pleasant                                      Ascent
  4. Monroe                                        Green                                                 Eclipse Resources
  5. Monroe                                        Green                                                 Eclipse Resources

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

Northeast Supply Enhancement