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   Shale Directories.com. and Penn State Marcellus Center for Outreach and Research are partnering with Delaware Valley Marcellus Association to present a seminar which will be featuring Cabot Oil and Gas, the leading producer in Northeastern PA.  Lou D’Amico, PIOGA President, will be attending the seminar.  You’ll get the chance to speak with Lou to get his perspective on what is happening in the Marcellus Shale region.  Get the latest drilling information in Northern PA and learn how to take advantage of the business opportunities in the Marcellus Shale region and drilling begins to pick up again.

http://www.marcellusdelval.org/dvma/the-dvma-hosts-cashing-in-on-natural-gas-on-feb-6-in-malvern/

Marcellus-Utica Midstream.  We’ll be there.  Visit us @ booth 823

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

  • Chevron drilling activity will double in 2013 and 2014.  Last week, at our oil and gas business development seminar Altoona, PA, Chevron presenters stated that Chevron which drilled about 70 wells in 2012 will double drilling in 2013 to 165 wells.  In 2014, Chevron is planning to double the number of wells it will drill in 2013.

    Major producers like Chevron have strategic plans for natural gas drilling and production and the mcf price of natural gas does not seem to have a major impact on drilling and production plans.
  • The first three applications for test wells related to BP Energy's oil and gas exploration in Trumbull County show that the energy giant is assessing an area just east of Mosquito Lake before its drilling program begins in April, according to state records.

    Brammer Engineering, a gas-and oil-services company based in Shreveport, La., has submitted three applications for test wells in Gustavus, Johnston and Kinsman townships, says data submitted to the Ohio Department of Natural Resources.

 

  • BP drilling to start in Trumbull, County, Ohio.  The first three applications for test wells related to BP Energy's oil and gas exploration in Trumbull County show that the energy giant is assessing an area just east of Mosquito Lake before its drilling program begins in April, according to state records.

 

  • The Canadians are coming.  At many seminars and presentations, I tell attendees that in the oil and gas industry demand outstrips supply which there is tremendous opportunity for companies that want to work in the oil and gas industry.

    The phenomenon of “demand outstripping supply” is not just occurring in America.  It’s happening in Canada also.  Five Canadian Alberta oil sands companies are meeting with companies in CT and PA to convince them to come to Canada and work for them.

    I strongly encourage any company that can work in the oil and gas industry anywhere in North America to jump in.  Success working in the oil and gas industry is a company’s 40 year business plan.

 

  • Promised Land is disappearing quickly. (Thank you, Forbes). Over the past week – its third week in general release, the Matt Damon/John Krasinsky anti-natural gas piece of cinematic propaganda, “Promised Land”, fell off the proverbial Box Office Cliff, pulling in only an estimated $130,000 for the weekend of Jan. 18-20.  To be fair, the film’s managers decided to pull it down to just 130 theatres, compared to more than 1600 theatres in its first two weekends.  Of course, when any film is essentially pulled from theatres in its third week, having grossed less than half of its reported production budget at the box office that is a tacit admission of abject failure.

 

  • Seneca meeting success in Lycoming County.  David F. Smith, Chairman and Chief Executive Officer of National Fuel, Seneca’s parent company, stated, “The success we are achieving in Lycoming County validates the prolific nature of the Marcellus in this area. With three wells reaching peak production rates above 20 MMcf of natural gas per day, and all six reaching a combined 24-hour peak production rate of 107 MMcf of natural gas per day, these wells represent some of the most productive wells ever drilled in the Marcellus by any operator. With two drilling rigs running in Lycoming County, and without the production infrastructure constraints facing many other operators in the Marcellus, we anticipate this acreage will be a key driver of Seneca’s production growth over the next two to three years.”

 

  • Magnum Hunter Resources plan drilling in the Utica Shale.  Magnum Hunter Resources Corporation announced today that it intends to drill a minimum of four (4) Utica test wells in Ohio this year. If results are similar to those experienced by offset Operators in the area, then further development on the leasehold position is planned later in the year.

    The Company through its wholly-owned subsidiary, Triad Hunter, LLC ("Triad Hunter"), is currently building its first Utica Pad in Washington County, Ohio. The Farley Pad is designed for potentially drilling four (4) horizontal wells to the Utica formation. The first well will be a vertical pilot for extensive logging and coring, then plans are to plug back and drill an approximately 6,000 foot lateral in the Point Pleasant portion of the Utica. The well will then be fracture stimulated and tested. Plans are to spud this first well in late February or early March. Triad Hunter has mineral rights on about 107,000 gross acres (81,000 net acres) of Utica potential, largely held by production. About 41,000 gross acres (26,514 net acres) are deemed to be in the wet gas window.

    Three (3) additional Utica/Point Pleasant wells are planned in conjunction with the previously announced Joint Operating Agreement with Eclipse Resources I, LP, to form three drilling Units in Monroe County, Ohio. Production from these Utica wells, along with the twelve (12) "Magnum Rich" Marcellus wells will be gathered and delivered to the MarkWest processing facility at Mobley, West Virginia. This will be accomplished by laying three separate pipelines in the same right-of-way. One for wet gas, one for dry gas, and one for produced liquids to be separated at a central facility.

    Anticipating favorable results, the Company has already commissioned engineering drawings and Unit preparation on two (2) additional Utica Pads. The Crooked Tree Pad located in Noble County, Ohio is being designed around the potential for ten horizontal wells, five updip, and five downdip. The Woodchopper Pad located in Washington County, Ohio is being designed for four Point Pleasant horizontal wells.

 

  • Consol will be drilling Noble County.  Consol said it plans to drill 11 wells this year, all in Noble County. As part of the joint venture, Consol said Hess plans to drill 16 Utica wells during the coming year. Consol said it expects to invest $122 million in its Utica operations this year.

 

  • Philadelphia starting to see the benefits of Marcellus Shale.  Ineos Group AG, a Swiss chemicals manufacturer, has contracted with a Danish shipbuilder to transport ethane from a Philadelphia-area terminal to its petrochemicals plant in Norway. The deal impacts Fort Worth-based Range Resources, which last year agreed to supply ethane, a component of natural gas, to Ineos from a facility in Marcus Hook, Penn., starting in 2015. Range is one of the largest producers in the Marcellus Shale, a fast-growing field in the Appalachians. Range last year committed to be the anchor shipper of natural gas liquids on the Mariner East Project, running from southwestern Pennsylvania to Marcus Hook. On Wednesday, Ineos said it will buy an undisclosed number of liquefied natural gas (LNG) tankers from Evergas of Copenhagen, Denmark, to transport the ethane to an Ineos facility in Rafnes, Norway. Ethane can be processed into ethylene, a basic feedstock in the production of plastics.

 

Baker Hughes Rig Counts

  • Baker Hughes Rigs count for the January 25 reporting week. 
    • PA Marcellus 67 rigs – down 1
    • PA Utica 3 rigs – 0 unchanged
    • Ohio Utica 28 rigs – 0 unchanged
    • WV Marcellus 24 rigs  – down 3

Get your company ready for 2013 and become a ShaleDirectories.com member.

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

Northeast Supply Enhancement