BusinessCreator, Inc.

NewsLetters

  • OOGA Winter Meeting. The OOGA meeting was well attended and another good networking event. In our conversations, we heard a few interesting (Rumors) that we want to share:

    • Consol is drilling a well in Barnesville, OH. You can see the rig from Interstate 70. Consol will be drilling another four wells from the well pad. (Rumor)
    •  Rex Energy will be drilling in the Barnesville area in the near future. (Rumor)
    •  Look for Ashtabula and Trumbull Counties to pick activity with BP and Halcon. (Rumor)
  • Seminars in OH.

    • March 21st. We’ll be presenting with the Stark County Oil and Gas Partnership the “Where does your company fit in the oil and gas industry?” seminar. Call. For information call 330.451.6207.
    • April 9th. We’ll be partnering with Canton Regional Chamber of Commerce to present a Midstream seminar with representatives from Caiman Energy, Access Midstream and Crosstex Energy. Learn what’s happening with in Midstream in OH. https://www.cantonchamber.org/oil-and-gas-midstream-seminar

Latest facts and a rumor from the Marcellus and Utica Shale

  • Warren Buffet jumping on the natural gas locomotive. Berkshire Hathaway’s BNSF Railway Co. plans this year to test using natural gas to power its locomotive instead of diesel fuel. The new locomotives which use liquefied natural gas are being developed by units of General Electric and Caterpillar. BNSF has roughly 6.900 locomotives which use diesel fuel. The company estimates that it’s the second largest user of diesel fuel after the U.S. Navy.
  • Anadarko maintaining in the Marcellus and still testing in the Utica. The company said it expects its natural gas production in the Marcellus shale of Pennsylvania to generally remain flat. The company plans to keep four rigs working in the Marcellus.

    The company has “just incredible wells” in Lycoming, Bradford and Sullivan counties in Pennsylvania, said senior vice president Robert Daniels.

    On rigs in the Marcellus, Walker said: “We’re not taking it down and not taking it up, but I don’t think you should expect that industry-wide in this price environment is going to do a lot with dry gases, but the one dry gas basin, it does have economics of Marcellus.”

    The company said it expects to have more information on the Utica shale “as the year progresses.”
  • Kinder Morgan looking at Tuscarawas County for midstream facilities. No announcement has been made, but Kinder Morgan, the nation’s largest pipeline company, is eying Tuscarawas County for such facilities.

    Texas-based Kinder Morgan is still looking at Tuscarawas County for such plants, but no decisions have been made, said company spokesman Richard Wheatley on Monday.

    A report indicated that Kinder Morgan wants to build a processing plant to handle up to 300 million cubic feet of natural gas per day, plus a fractionation plant to handle up to 48 million barrels of natural gas liquids per day.

    The fractionation plant might later be expanded to 192 million barrels per day.

    Such plants typically cost $300 million to $500 million each.

    At present, five other natural gas processing plants have been proposed or are under construction eastern Ohio: in Mahoning, Columbiana, Harrison (two plants) and Noble counties.

    With 300 million cubic feet, the proposed Kinder Morgan facility would be the third largest gas processing plant in Ohio.
  • Mercer County seeing considerable lease action. Even as oil and gas companies operating across Pennsylvania’s Marcellus Shale formation have curbed some drilling in the East and shifted their focus to wet gas reserves in the Southwest, the market for mineral leases in Mercer County is strong; say county officials and industry experts.

    Despite a slight slowdown as drillers wait for pipeline expansions, more market development and a rise in wholesale prices, nearly 600 oil and gas leases were filed with the Mercer County Recorder’s office in January alone.

    Although the number is not entirely unusual, in December only 182 leases were filed in the recorder’s office and about 300 at the same time a year earlier. Remember what gets leased now gets drilled in the next 3-5 years which validates the Marcellus and Utica Shale can be your 10-20 year business plan.

    Compared with Lawrence and Beaver counties and points farther south such as Washington, Greene and Fayette counties, little activity has occurred in Mercer, where Pennsylvania Department of Environmental Protection data show only 10 horizontal wells have been permitted. Both Houston-based companies, Halcon Resources Corp. and Hilcorp Energy Co., have obtained the majority of acreage in recent months.

    According to experts, the lease grab in Mercer coincides with one under way in Trumbull County in Ohio. The area is a point where the Utica and Marcellus formations overlap.
  • Gulfport success is leading to more drilling in 2013. Gulfport drilled 14 Utica wells in 2012 with two in production and eight completed and resting, two awaiting completion and two being drilled.

    It is operating three horizontal rigs and two top-hole rigs in the Utica shale. A fourth horizontal rig should be added by April.

    It has earmarked $404 million in 2013 on Utica shale development. A total of 50 wells are planned in 2013. Many of those wells will be on pads next to existing wells.
  • Crosstex Energy investing in Noble and Monroe Counties, Crosstex Energy said it has joined with former executives from Enerven Compression services to form a new company, E2, which will invest $50 million in natural gas processing facilities in Noble and Monroe counties in southeast Ohio.
  • Halcon getting active in Trumbull and Mercer Counties. Halcon Resources Corp. has announced that it will begin work on between 20 and 25 production wells across its 131,000 acres of leasehold in the Utica Shale play, which includes Trumbull and Mercer counties.

    After its fourth-quarter earnings report this week, the company gave an operational update on its work nationwide. It said it plans to spend $200 million in Ohio and Pennsylvania this year.

    Already, two wells, including one in Venango County, Pa., and one in Mercer County, Pa., have been drilled and completed.

    Halcon’s first 10 wells will be drilled in the first half of 2013. The company has leases in Lordstown and Hartford Township, OH.
  • Trans Energy wells breaking records in WV. Trans Energy says it has broken company records with recent natural gas production numbers from two Marshall County gas wells.

    According to a release from the company, the 30-day initial production results on the Doman #1H and Doman #2H wells reported set new records for production rates. The #1H site produced an average of 6,421 MCfe per day and the #2H site produced 5,567 Mcfe per day.

    "The adjusted rates for the Doman #1H and the Doman #2H represent the second and fourth best 30-day IP rates of any of the company's wells to date, and the adjusted average for the Doman pad site exceeds the average for either the Anderson or Dewhurst pad site, which had previously exhibited the company's best performance to date," the release states.

    "The Doman #1H and #2H are two of our best performing wells to date," said John G. Corp, president of Trans Energy. Most important, however, is the operational consistency we're starting to see across our acreage positions in Marshall and Wetzel County as we have continued to enhance our drilling and completion techniques. The results are slowly starting to translate into, what we believe, is a manufacturing process across this acreage."

    Corp added that the company is further developing its position in the Marcellus shale.

    "We are in the process of deploying two additional rigs that will soon begin drilling in Marshall and Marion counties," Corp said. "Upon completion of these wells, one of the rigs will be redeployed to Tyler County, West Virginia to begin drilling."

Finally drilling news from WV. We’re so pleased we can report information on drilling activity in WV.

Baker Hughes Rig Counts

  • Baker Hughes Rigs count for the March 8 reporting week.
    • PA Marcellus 70 rigs – down 2
    • PA Utica 2 rigs – unchanged
    • Ohio Utica 27 rigs – unchanged
    • WV Marcellus 2 rigs – unchanged


PA Permits for March 1-8

           County                   Municipality                        E&P Company

  1. Armstrong               Gilpin Township                  MDS Energy
  2. Bradford                  Herrick                               Southwestern
  3. Bradford                  Herrick                               Southwestern
  4. Bradford                  Herrick                               Southwestern
  5. Bradford                  Herrick                               Southwestern
  6. Bradford                  Herrick                               Southwestern
  7. Bradford                  Herrick                               Southwestern
  8. Bradford                  Stevens Township             Southwestern
  9. Butler                      Fairview                             Chevron
  10. Butler                      Forward                             XTO/Exxon
  11. Butler                      Jackson                              Rex Energy
  12. Butler                      Jackson                              Rex Energy
  13. Fayette                   Jefferson                            Chevron
  14. Fayette                   Jefferson                            Chevron
  15. Fayette                   Jefferson                            Chevron
  16. Fayette                   Jefferson                            Chevron
  17. Fayette                   Jefferson                            Chevron
  18. Fayette                   Jefferson                            Chevron
  19. Fayette                   Jefferson                            Chevron
  20. Fayette                   Jefferson                            Chevron
  21. Fayette                   Jefferson                            Chevron
  22. Greene                   Cumberland                        Energy Corp. of Am
  23. Greene                   Cumberland                        Energy Corp. of Am
  24. Greene                   Cumberland                        Energy Corp. of Am
  25. Greene                   Cumberland                        Energy Corp. of Am
  26. Greene                   Cumberland                        Energy Corp. of Am
  27. Lycoming                Lewis                                  Range
  28. Lycoming                Lewis                                  Range
  29. Mercer                    Delaware                            Hilcorp.
  30. Sullivan                  Cherry Township                 Chesapeake
  31. Susquehanna        Hartford                               Southwestern
  32. Susquehanna        Hartford                               Southwestern
  33. Susquehanna        Hartford                               Southwestern
  34. Susquehanna        Hartford                               Southwestern
  35. Susquehanna        Hartford                               Southwestern
  36. Susquehanna        Hartford                               Southwestern
  37. Susquehanna        Rush Township                    Chesapeake
  38. Susquehanna        Rush Township                    Chesapeake
  39. Susquehanna        Springville                            Chief
  40. Wyoming               Meshoppen                          Chesapeake

 
OH Permits – week ending March 2

            County               Township               E&PCompanies

  1. Carroll                 East                        Chesapeake
  2. Carroll                 Union                      Chesapeake
  3. Carroll                 East                        Chesapeake
  4. Carroll                 Union                      Chesapeake
  5. Carroll                 Perry                       Chesapeake
  6. Carroll                Washington             Chesapeake
  7. Carroll                East                         Chesapeake
  8. Carroll                Washington             Chesapeake
  9. Carroll                Washington             Chesapeake
  10. Carroll                Washington             Chesapeake
  11. Carroll                Washington             Chesapeake
  12. Carroll                Union                       Chesapeake
  13. Carroll                East                         Chesapeake
  14. Columbiana       Center                      Chesapeake
  15. Guernsey           Richland                   PDC Energy
  16. Guernsey           Richland                   PDC Energy
  17. Guernsey           Valley                       EQT
  18. Harrison            Short Creek              Hess
  19. Monroe             Seneca                      Antero
  20. Monroe             Seneca                      Antero


Take advantage of a bullish 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