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The latest facts and a rumor from the Marcellus and Utica Shale

  • Chevron Appalachia Michigan Business Unite (AMBU) Chevron’s Supplier Forum was very informative with its presentations and gave attendees the opportunity to network with various representatives in its procurement department.
    • Chevron stated that it will drill 100 wells this year. To date it has drilled 71. Chevron’s goal is to drill 300 wells a year. To give you a perspective on 300 wells a year, it is about the same number of wells Chesapeake drilled annually at the height of its drilling activity in PA.
    • Chevron is one of the largest lease holders in the Marcellus and Utica Shale region. It has about 800,000 acres in PA and almost 700,000 acres in OH.
    • Chevron has been issued a new permit to drill its second horizontal well in Mercer County, Pa., the Pennsylvania Department of Environmental Protection reports.


  • Shell updates. Shell is getting active in NE PA.
    • In the eastern end of Lawrence County, Joe Minnitte, case manager for Shell Exploration and Production Co., said the company is gearing up for more drilling next year.
    • Right now, the company is drilling its last two wells of 2012 in this area — one is the Williams Well in Slippery Rock Township in Butler County, and one is the Thomas Kephart well in North Beaver Township. Those are still part of Shell’s exploration phase, Minnitte said.
    • Shell has built four well pads in Lawrence County. In addition to the Kephart, there is the Patterson well in Little Beaver Township, the Twentier property in Perry Township and the Mayberry property in Scott Township.
    • Minnitte said Shell is not yet installing any gas transmission pipeline but he knows that other companies are.
    • Shell’s plans for 2013 so far include about eight to 10 wells on a site called the Halterline site in Slippery Rock Township, Butler County, Minnitte said. He added no plans are on the schedule yet for drilling next year in Lawrence County.
      Shell is moving a rig from the Northern Tier to Erie County (Rumor)


  • Hilcorp Energy Co. Excavating was started last week on a farm off Route 551 for the laying of gas and water pipeline by Hilcorp Energy Co. of Houston, which has the drilling operation on Garner Road.
    The company’s plans are to drill five wells on property owned by Laird and Joyce Whiting, and, until recently, a rig there could be seen for miles around.
    Hilcorp secured five conditional use approvals from the township for each well, and has received conditional use approval to build a central facility for processing gas at the Whiting site.


  • Chesapeake active in Eastern OH counties. Four new horizontal drill permits were issued to Chesapeake Exploration LLC in Columbiana County last week, while 10 other permits were awarded the company for drilling rights in Carroll and Harrison counties, the Ohio Department of Natural Resources reports.
    • ODNR records show Chesapeake wants to drill one well in Salem Township at the Weaver farm, two wells in Franklin Township on the Milltree property, and another in Middleton Township at the Benner farm in Columbiana County. All of the permits were issued Oct. 15.


  • Seneca Resources Corporation converting rigs to LNG. Seneca Resources announced plans to complete the conversion of two of its Pennsylvania drilling rigs to cleaner-burning natural gas, displacing the diesel fuel currently used to power equipment at the well site. These will be the first dedicated 100 percent liquefied natural gas (LNG)-fueled drilling rigs operating in the Marcellus Shale within Pennsylvania.


  • Magnum Hunter Resources is buying Virco. Magnum Hunter Resources is acquiring approximately 51,500 net Appalachian Basin mineral acres located in West Virginia and Ohio.
    • This acreage position includes approximately 27,000 net acres in the liquids-rich Marcellus Shale, of which 19,000 are located in Ritchie County, West Virginia and 8,000 are located in Washington and Monroe Counties, Ohio.
    • Management has identified 105 gross drilling locations on the Virco acreage which is broken down as follows:
      • 74 Marcellus drilling locations
      • 31 Utica drilling locations
      • Upon the financial closing of this transaction, the Company will have over 85,500 net acres in the liquids-rich Marcellus Shale and 81,800 net acres located within the Utica Shale.


  • Chrysler Group LLC announced October 25th that 13 Ram Truck dealers landed contracts with 19 states to supply their fleets with the new Ram 2500 Heavy Duty CNG pickup truck.

Baker Hughes Rig Counts

  • Baker Hughes Rigs count for the October 26 reporting week. OH rig count is up 32% and WV’s rig county continues to slip.
    • PA Marcellus 63 rigs – unchanged
    • PA Utica 3 rigs – Unchanged
    • Ohio Utica 25 rigs – up 2
    • WV Marcellus 24 rigs – down 2

Call us to give your business a strong presence on the well site, on the pipeline and on the road.

Joe Barone 610.764.1232
Vera Anderson 570.337.7149


Northeast Supply Enhancement