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  • Permit Activity.  
     
    • PA – 43 permits; Chesapeake active in Bradford; 17 different E&P’s receive permits
    • OH –17 permits; Noble County sees considerable Antero permitting
       
  • Expo/Industry events for the next few months:
     
    • DUG East Conference and Exhibition June 3-5, Pittsburgh, PA
      Visit us at booth 250    
       
    • 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
      • EnLink Midstream (merger of Crosstex and Devon Midstream)
      • Panel of local midstream companies

        Additionally, Bricker & Eckler’s Chris Schmenk will present the firm’s “Shale Economic Development Overview” which will highlight the midstream projects in OH.
        Register now!  Less than two weeks before the event.
        https://www.cantonchamber.org/midstream-ohio-2014-sponsorship-opportunities
         
    • Northern Tier Marcellus Shale Expo June 18, Mansfield, PA

      The Northern Tier Marcellus Shale Business to Business Expo will be held on June 18th at Mansfield University!
      Register your business today at www.ntmarcellusexpo.com

Latest facts and a rumor from the Marcellus and Utica Shale

  • Nat Gas Pricing holding the line.  The price has not experienced a big drop price despite of the fact that summer is around the corner.  The trading range is between $4.40 and $4.70.  
     
  • Aubrey needs deals and people.  Aubrey McClendon, the former head of Chesapeake Energy Corp. who is charging into the Utica shale play with a new venture, has raised $4 billion more to drill in the U.S.

    That brings total capital raised to $8.7 billion, with more than a third targeted toward Ohio’s oil and gas resources.

    McClendon is forming two new companies to drill in the Permian and Marcellus formations in the South and Northeast U.S., and he has raised $4 billion in capital to do it, he told the blog Unconventional Oil & Gas Center.

    The deals should close by summer’s end, McClendon said.

    McClendon told a Houston conference that he’s looking to acquire land and workers. His Utica shale company, American Energy Utica LLC, recently erected a billboard near the Ohio State University seeking employees.

    “I need deals and I need people, and that’s a part of my presentation today,” he told the conference, according to Unconventional Oil & Gas Center.

    He has thrown the most money toward the Utica play in eastern Ohio so far. He’s raised the $8.7 billion in just nine months, acquiring hundreds of thousands of acres.
     
  • The Beast in Harrison County, OH.  The Beast is the term that Texas-based Momentum Midstream spokesman Eric Mize lovingly uses to describe the new and growing liquids-separating complex in northern Harrison County.

    He also refers to the sprawling facility as the Big Boy. "It is a big plant, a very big plant and far bigger than other plants around here. What’s really amazing that we got it up and running in six months. No one believed that we could do that."

    The facility, part of $1.6 billion three-plant processing complex, sits at the edge of tiny Scio with its 760 residents and one traffic signal.

    The so-called fractionation plant is designed to separate the natural gas liquids that come from Ohio’s Utica shale, store it and ship it. The plant is a mile long and half mile wide.

    The Scio plant processes 90,000 barrels a day today and that volume will soon be growing again.

    It is one of two liquids-separating plants in eastern Ohio that are needed by midstream or processing companies to separate liquids and get them to market. It is added evidence that Ohio’s shale boom is real.

    Such liquids can produce revenue of $60 or more per barrel, and that makes them very lucrative for energy companies. Those Ohio liquids are expected to produce $450 million in revenues in 2014, separate from natural gas and oil. The other Ohio liquids-processing plant was built by MarkWest Energy Partners in Jewett in Harrison County with 60,000 barrels per day of capacity. That Hopedale Complex will have an additional 78,000 barrels available by late 2014.

    Note: Eric Mize is one of the speakers at Midstream Ohio 2014 on June 11 in Canton, OH.
     
  • Magnum Hunter bullish.  Oil and gas producer Magnum Hunter will sell $150 million of its common stock to a private investor to fund more activity in the Marcellus and Utica Shales.
     
  • Marcellus and Utica Production Forecast

    Source: Bentek Cell Model
     
  • ExxonMobil expanding in the Permian.  ExxonMobil has acquired additional assets in West Texas’ Permian Basin via an asset swap with LINN Energy.

    LINN will receive a portion of ExxonMobil’s interest in its Hugoton Field in Kansas and Oklahoma, which is currently producing roughly 85 MMcfe/d (80% natural gas and 20% natural gas liquids).

    Total reserves are estimated at roughly 700 Bcfe (80% natural gas and 78% proved developed producing).

    The field is comprised of more than 500,000 net acres and has roughly 2,300 operated wells.

    LINN has identified more than 400 future drilling locations, doubling the company’s inventory in the Hugoton.

    ExxonMobil via the swap will receive roughly 25,000 net acres in the Midland Basin, located primarily in Midland, Martin, Upton and Glasscock counties.
     
  • Chesapeake assigning acreage.  CHK have assigned or will be assigning its acreage in Columbiana County, OH to Hilcorp.  (RUMOR)
     
  • Shell likes fossil fuels.  Royal Dutch Shell believes fossil fuels will play a key role in global energy beyond the year 2050, dismissing the possibility its proven oil or gas reserves will become unusable as a result of climate change regulation.
     
  • Cryogenics and pipeline going on line.  The Hilcorp/NiSource cryogenics plant and Hickory Bend pipeline is scheduled to go online this July.  This massive 24" pipeline runs from Mercer County (PA) in the north all the way down to southern Columbiana.  Portions of the complex ties into the Ohio river with a Hilcorp pier and another line connects the Mahoning cryogenics plant to the Kensington in Columbiana the nexus of a major "Diluent" pipeline into the Canadian tar sands to be completed in 2015. (RUMOR)
     
  • Permian’s future looking bright. The Permian Basin’s tight oil plays are expected to lead the US in production according to new data and estimates.

    According to new statistics from Rystad Energy, an independent oil and gas consulting service and business intelligence data firm, the Permian Basin’s “tight” play is expected to pull ahead of all other U.S. tight oil plays by 2020. Tight oil or “Shale oil” is petroleum consisting of light crude oil in formations of low permeability. Thanks to advances in hydraulic fracturing in recent years, tight formations are now potentially profitable.

    The data suggests that within the next half decade, the Permian Basin will produce more than 1.8 million bbl/d (oil barrels per day). Early returns form hastened drilling into the Wolfcamp shale and other horizons in the Permian Basin anticipate this area will eventually produce more tight oil volumes than any other tight play in North America. Relatively speaking, unconventional Permian plays like Wolfcamp/Cline Shale are still in early development. Nonetheless, the potential for stacked lateral development (multilateral wells) is vast and has already attracted some very efficient and well known operators. Pioneer Natural Resources’ chief executive officer, Scott Sheffield, has even claimed the Wolfcamp shale could potentially become the largest oil and gas discovery in the world.
     
  • Cabot on the cutting edge.  In the crook of a hill on a dirt road north of Meshoppen lies Cabot Oil & Gas’s pride and joy: the Bray, a 10-well pad that produced enough natural gas in its first month to supply the city of Philadelphia for a month.

    Above ground, orderly rows of green pipes run from 10 wellheads to sand separators and production units. Below ground, Cabot positioned the wells to maximize the amount of surface area of the Marcellus Shale the well taps, spokesman George Stark said.

    The techniques used to drill and hydraulically fracture wells on this pad evolved over many decades in oil and gas regions all over the world.

    It’s possible that techniques used on the Marcellus could one day be used on another.

    The goal is to constantly take this technology and apply it somewhere else, external affairs coordinator Bill desRosiers said.

    The Bray pad has wells that penetrate the upper and lower parts of the Marcellus formation, which can be 300 to 350 feet thick in Susquehanna County. These wells are arranged in a “sawtooth” formation, Stark said, including two upper wells spaced 1,000 feet apart from each other and two lower wells spaced the same distance.
     
  • Gulf applies for LNG exporting facility.  Gulf LNG Liquefaction Co. is compiling data to support an application to the Federal Energy Regulatory Commission to add liquefaction and export capabilities to its $1 billion liquefied natural gas storage terminal in Pascagoula.

    The agency told Gulf LNG it could start the pre-application process.

    The project would require new or additional in-tank pumps, piping modifications, and valves and control systems to provide for bi-directional operation and tie-ins to the new facility, among other work, the company said in its filing to the agency.
     
  • Exporting U.S. oil may be getting closer to reality.  Recent meetings between U.S. oil producers and Commerce Department officials have fueled industry hopes that the Obama administration may soon begin to ease a longstanding ban on oil exports.

    Although it would require an act of Congress to end the four-decade export ban, some analysts and executives believe the White House may be getting ready to open up the taps a bit, allowing some export of a super-light form of oil known as condensate, which falls into a regulatory gray area.

    Executives and sources said a number of major shale oil producers have quietly stepped up lobbying efforts over the contentious energy issue in recent weeks, meeting with officials from the Commerce Department’s Bureau of Industry and Security (BIS), which oversees exports

Rig Count

  • In PA the Marcellus rig count has reached its highest count since April 2012
     
  • Baker Hughes Rigs count for the May 23th reporting week.  
     
    • PA Marcellus 58 rigs – unchanged
    • PA Utica 2 rigs – unchanged    
    • Ohio Utica 39 – unchanged
    • WV Marcellus 25 – unchanged

PA Permits for May 22 to May 29 2014

       County             Township               E&P Company
1.    Bradford            Asylum                   Chesapeake
2.    Bradford            Granville                  Chesapeake
3.    Bradford             Leroy                      Chesapeake
4.    Bradford             Leroy                      Chesapeake
5.    Bradford             Rome                     Chesapeake
6.    Bradford             Smithfield                Chesapeake
7.    Bradford             Smithfield                Chesapeake
8.    Bradford             Smithfield                Chesapeake
9.    Bradford             Terry                       Chesapeake
10.    Bradford             Wilmot                  Chesapeake
11.    Butler                 Oakland                EM Energy
12.    Butler                 Oakland                EM Energy
13.    Butler                 Oakland                EM Energy
14.    Butler                 Slippery Rock        Shell
15.    Cameron             Shippen                Seneca
16.    Cameron             Shippen                Seneca
17.    Clarion                Madison                Northeast Nat. Ener
18.    Greene               Greene                   Energy Corp. Am
19.    Greene               Greene                   Energy Corp. Am
20.    Greene               Greene                   Energy Corp. Am
21.    Greene               Greene                   Energy Corp. Am
22.    Greene               Jackson                  Vantage
23.    Greene               Jackson                  Vantage
24.    Greene               Jackson                  Vantage
25.    Greene               Jackson                  Vantage
26.    Greene               Richhill                    CONSOL
27.    Jefferson             Snyder                    Flatirons Dev.
28.    Lawrence            Pulaski                    Hilcorp
29.    Lycoming            Plunketts Creek       Exco
30.    Susquehanna       Auburn                   Chesapeake
31.    Susquehanna       Auburn                   Chesapeake
32.    Susquehanna       Jackson                 Southwestern
33.    Susquehanna       Jessup                   Southwestern
34.    Susquehanna       Liberty                    WPX
35.    Susquehanna       Liberty                    WPX
36.    Tioga                  Gaines                    Ultra
37.    Washington         Buffalo                    Range
38.    Washington         Deemston               Chevron
39.    Washington         West Finley            Noble
40.    Washington         West Finley            Noble
41.    Westmoreland     Derry                      WPX
42.    Wyoming            Nicholson                Chesapeake
43.    Wyoming            Windham                Chesapeake

OH Permits – week ending May 24, 2014

       County              Township             E&P Companies

1.    Belmont             Kirkwood               Gulfport
2.    Belmont             Kirkwood               Gulfport
3.    Carroll                Union                    Chesapeake
4.    Carroll                Union                    Chesapeake
5.    Guernsey           Londonberry           Amer. Ener. Utica
6.    Guernsey           Londonberry           Amer. Ener. Utica
7.    Guernsey           Londonberry           Amer. Ener. Utica
8.    Guernsey           Oxford                   Eclipse
9.    Harrison             German                 Chesapeake
10.    Monroe             Perry                    EM Energy
11.    Noble                Beaver                  Antero
12.    Noble                Beaver                  Antero
13.    Noble                Beaver                  Antero
14.    Noble                Beaver                  Antero
15.    Noble                Beaver                  Antero
16.    Noble                Beaver                  Antero
17.    Noble                Beaver                  Antero


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

 

Midstream PA