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  • Permit Activity.
     
    • PA – 38 permits; Chesapeake continues permitting with 24; Chevron and Shell starting to get active
    • OH –11 permits; XTO is making a big move.

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Free Oil and Gas Safety Workshop

Hosted by Cintas, Bulwark and ShaleDirectories.com

Seminar schedule:
May 1 at Shadowbrook Resort in Tunkhannock, PA
At the workshop, you will learn:
 

  • What OSHA looks for when conducting a flash fire safety inspection
  • What you need to protect your employees
  • How to build a Managed FRC Program
  • Make plans to attend today! Learn more and register at

www.cintas.com/flashfireworkshop

Expo/Industry events for the next few months:
 

  • Wyoming CCC, PA 2014 Business, Gas and Job Expo April 30
  • Ohio Valley Oil and Gas Expo April 30-May 1, Belmont County
  • Jobs Energy Rally May 6, Harrisburg, PA – this industry event will be the ultimate networking opportunity. Representatives from the E&P companies and major oil field services will be at the event.  Come out and support the industry.  Register today.  http://unitedshaleadvocates.com/
  • Shal-Abration May 10, Cambridge, OH
  • PIOGA 2014 Eastern Oil and Gas Trade Show and Conference May 13-14, Heinz Field, Pittsburgh, PA
  • DUG East Conference and Exhibition June 3-5, Pittsburgh, PA
  • Midstream Ohio 2014 June 11, Canton, OH – this event will provide a good update of midstream activity in OH with speakers from 
    • Blue Racer
    • Access Midstream
    • Momentum
    • EQT Midstream Partners
    • EnLink Midstream (merger of Crosstex and Devon Midstream)
  • Northern Tier Marcellus Shale Expo June 18, Mansfield, PA


Learn more about these expos.  http://www.shaledirectories.com/oil-and-gas-expo-information.html

 

Latest facts and a rumor from the Marcellus and Utica Shale

 

  • Shell hits oil in Tioga County, PA.  We have heard from two separate sources.  One commented that it’s the Gee well that hit oil.  (RUMOR)

    We’ll track this one.  It would certainly change Shell corporate’s perspective of its Marcellus investment.
     
  • Range bullish on Marcellus operation.  The Marcellus is a key part of the company's portfolio, and Range allocated 87% of its 2014 capital spending budget of $1.52 billion to the formation.   The total capex is $220 million higher than the amount spent in 2013.Range.jpg

    Range, which helped pioneer development of the Marcellus, holds nearly 1 million net acres across the formation and is one of its largest producers. Marcellus production reached 1 bcfd in late December and is expected to rise 20-25% in 201
     
  • Gastar back in business in WV.  Gastar Exploration reported today that production from its Marshall County, West Virginia operations has resumed with no restrictions following the successful re-routing of natural gas volumes through the Williams operated midstream system and the return to service of the pipeline that transports condensate from the field to processing facilities.

    Gastar currently has 50 wells producing, with seven additional wells temporarily shut-in due to drilling and completion operations on the producing well pads. Current gross average daily production is approximately 67 million cubic feet per day of unprocessed natural gas and 1,900 barrels of condensate.
     
  • Cabot Oil & Gas makes $2.5 million gift.  Lackawanna College announced it received the largest private donation in its history.  The $2.5 million gift from Cabot Oil & Gas Corp. will boost the college’s $3 million endowment to $4 million. The other $1.5 million will be used for equipment, training, faculty and staff, student curriculum and internships in the college’s School of Petroleum & Natural Gas.
     
  • Williams Partners with Shell.  Williams Partners L.P. announced that it has agreed to launch a new midstream joint venture with Shell to provide gas gathering and gas processing services for production located in Northwest Pennsylvania. The venture will invest in both wet-gas handling infrastructure and dry gas infrastructure serving wells in the area.
     
  • Notes from NAPE:
     
    • Consol
      • Cost per lateral has fallen to $378 per lateral in 2013 from $529 in 2012
      • Well spacing is down to 150 ft. in some cases.
      • Upper Devonian plays are looking great.  Burkett in particular is showing no decline curve
      • Pads are much larger in order to accommodate 18-24 wells per pad
      • Utica is not very similar to the Marcellus, so it requires differing techniques, but is very similar to the Eagle Ford.  We’ll have to see if this becomes a big oil play like the Eagle Ford
    • Mark West
      • 17 plants have been built over the past two years, which is amazing growth; starting to run short on land for new projects in Ohio.  Need to be close to pipelines and railroads
      • How long will the Marcellus/Utica shale plays last? The typical shale play is 35 years per shale play, but Marcellus/Utica have multiple layers
    • Talisman estimates the Marcellus will easily last 100 years with 30-40 years of drilling and production thereafter.
    • New York Marcellus is a lower quality of gas and even without a moratorium the growth would be slow.  Drilling will happen there someday but current interest is minimal.
       
  • Antero rig update.  According to Antero’s latest financial PR release, it has 15 rigs in the Marcellus and 5 rigs in the Utica. 
     
  • Utica drilling coming to WV.  For several years, companies drilled into the Marcellus Shale in West Virginia and the Utica Shale in Ohio. Now the Utica rush has come to the Mountain State.

    Fossil Creek Ohio is signing Utica Shale leases in Marshall County, with plans to start sinking wells in the near future. The company said each well will cost up to $22 million to drill, compared to about $7 million that some companies have publicly said they are paying to drill in the Marcellus.

    Other companies also are signing leases. The Utica Shale sits below the Marcellus, more than 2 miles beneath the Earth's surface.
     
  • Shell cracker meeting update.  Dan Carlson, a Shell general manager, said the company has signed long-term contracts with nearly 10 energy companies who would supply a component of natural gas to the proposed plant. The plant would convert ethane from bountiful Marcellus and Utica shale natural gas and oil into more profitable chemicals which are then used to produce plastics, tires, fertilizer, and other products.

    Shell has an option to purchase a 300-acre industrial site on the Ohio River from Horsehead Corp., and demolition of a zinc factory that was there has already begun. But Carlson stressed that’s no guarantee the multibillion-dollar plant will be built. In some other states — Colorado, for example — Shell invested tens of millions of dollars in proposed projects before deciding to shut them down.

    Carlson said it’s hard to predict when the decision on whether to build the plant will be made, but it could come in the next one or two years. For now, the company is happy with the response from local communities.

    “We’re just really glad to see that there’s so much excitement and enthusiasm,” he said. “I think people recognize the impact this project could have” on the regional economy.

    In 2012, state lawmakers passed — and Gov. Tom Corbett signed — legislation that could give Shell tax credits worth $1.7 billion or more for 25 years, beginning in 2017, if the plant is built.

    Shell, which has its U.S. headquarters in Houston, has estimated that a new cracker plant could employ several hundred people, lead to the growth of related businesses and create up to 10,000 construction jobs.
     
  • OH links fracking to earthquakes.  State geologists in Ohio have for the first time linked earthquake activity in the Marcellus Shale basin to hydraulic fracturing, confirming the suspicions of activists pushing for drilling limits in the interest of public health.

    State Oil & Gas Chief Rick Simmers told The Associated Press that a state investigation of five small tremors in the Youngstown area last month has found a probable link.

    He said Ohio is setting new permitting conditions in earthquake-sensitive areas and has halted drilling indefinitely at the site of the March quakes.

Rig Count
 

  • Baker Hughes Rigs count for the April 11 reporting week. 
     
    • PA Marcellus 53 rigs – unchanged
    • PA Utica 1 rigs – unchanged    
    • Ohio Utica 34 – down 4 
    • WV Marcellus 26 – unchanged


PA Permits for April 10, to April 17 2014

       County              Township                   E&P Company
1.    Armstrong         Plumcreek                  EQT
2.    Bradford            Albany                       Chesapeake
3.    Bradford            Albany                       Chesapeake
4.    Bradford            Herrick                       Chesapeake
5.    Bradford            Rome                         Chesapeake
6.    Bradford            Terry                          Chesapeake
7.    Bradford             Ulster                        Chesapeake
8.    Bradford             West Burlington        Chesapeake
9.    Bradford             Wyalusing                 Chesapeake
10.    Bradford           Wyalusing                 Chesapeake
11.    Bradford           Wysox                       Chesapeake
12.    Fayette             Springhill                   Chevron
13.    Fayette             Springhill                   Chevron
14.    Fayette             Springhill                   Chevron
15.    Greene             Aleppo                       Chesapeake
16.    Greene             Center                       CONSOL
17.    Greene             Center                       CONSOL
18.    Greene             Center                       CONSOL
19.    Sullivan            Colley                         Chesapeake
20.    Susquehanna   Auburn                      Chesapeake  
21.    Tioga                Richmond                   Shell
22.    Tioga                Richmond                   Shell
23.    Tioga                Richmond                   Shell
24.    Tioga                Richmond                   Shell
25.    Washington      Independence           Chesapeake
26.    Washington      Jefferson                    Range
27.    Washington      Jefferson                    Range
28.    Washington      Jefferson                    Range
29.    Wyoming          Meshoppen                Chesapeake
30.    Wyoming          Meshoppen                Chesapeake
31.    Wyoming          Meshoppen                Chesapeake
32.    Wyoming          Washington                Chesapeake
33.    Wyoming          Washington                Chesapeake
34.    Wyoming          Washington                Chesapeake
35.    Wyoming          Washington                Chesapeake
36.    Wyoming          Windham                    Chesapeake
37.    Wyoming          Windham                    Chesapeake
38.    Wyoming          Windham                    Chesapeake

OH Permits – week ending April 12, 2014

       County               Township          E&P Companies

1.    Belmont              York                    XTO
2.    Belmont              York                    XTO
3.    Belmont              York                    XTO
4.    Belmont              York                    XTO
5.    Belmont              York                    XTO
6.    Belmont              York                    XTO
7.    Belmont              Mead                   XTO
8.    Belmont              Mead                   XTO
9.    Monroe               Switzerland         CONSOL
10.    Monroe             Switzerland         CONSOL
11.    Noble                Seneca                CONSOL


Take advantage of the bullish outlook and become a member in ShaleDirectories.com.

Joe Barone jbarone@shaledirectories.com 610.764.1232
Vera Anderson vera@shaledirectories.com 570.337.7149
Andrea Bagnell andrea@shaledirectories.com 610.256.1898

 

Utica Summit