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NewsLetters

  • Permit Activity
    • OH issued a record number of permits 14 this past week
    • BP gets first lease
  • PA activity is back to normal.
    • Greene and Westmoreland counties seeing most of the permitting after a slow week last week.
  • Tri-County Expo May 17 & 18.  Visit us in Building 1, booth space 73
  • Shell Ethane Cracker Plant.  Everyone is wondering what is taking so long for Shell to purchase the land for the plant.  Some people are thinking that Shell is lining up partners.  (Rumor)

Latest facts and a rumor from the Marcellus and Utica Shale

  • President Obama leaning towards exporting LNG.  President Barack Obama said in Central America on Saturday that the United States might be able to help relieve that region's growing energy demands by exporting liquefied natural gas, a move opposed by some U.S. businesses and environmentalists.

    At a development forum that ended his three-day trip to Mexico and Costa Rica, Obama held out the prospect that surging supplies of natural gas in the United States could be sold in the area to help reduce its energy costs.

    Obama's Energy Department is to decide in the coming months, possibly this summer, whether to approve more than two dozen applications for natural gas exports to companies in countries that do not currently have a free-trade agreement with the United States. It is one of the first big energy decisions he faces early in his second term.

    Obama made a case for taking the step. The United States, riding a surge of natural gas production, is likely to be a net natural gas exporter as soon as 2020, he said.

    He said he discussed with Central American presidents at a dinner on Friday night how U.S. natural gas can be used by the region as a bridging mechanism to relieve its energy demands until alternative energy sources can be increased.

    I never thought we would have information like this in Facts & Rumors.  Obviously, the overwhelming benefit of natural gas is being recognized across the political spectrum. And we’ve said all along- the shale play is global,

 

  • EQT getting more bullish and Chesapeake still selling.  Chesapeake Energy Corp. is selling another chunk of its acreage in Pennsylvania as it tries to close a multibillion-dollar budget gap.

    Pittsburgh-based EQT Corp. announced Friday it has signed an agreement with Chesapeake to buy about 99,000 net acres and 10 horizontal wells in southwestern Pennsylvania for $113 million. Included are 67,000 acres in the Marcellus Shale and 32,000 acres in the dry-gas portion of the Utica Shale.

    EQT is quickly becoming a major player in the Marcellus and Utica Shale.

 

  • Tyler County, WV is seeing increasing abstract activity.  Tyler County could be the next hot county in WV.  Land men are sleeping in their cars to get in line to be the first one in the court house.  We’ll be watching this county to see which E&P companies are focusing on this county.

 

  • Chevron land purchase.  Last week we reported Chevron is buying land in the Pittsburgh area for a regional headquarters.  The land could also be used for something other than offices.  (Rumor)

 

  • Antero Resource could be going public.  Antero Resources, an oil and natural gas company controlled by Warburg Pincus LLC, is preparing for an initial public offering that could value it at as much as $10 billion.   The offering will be later in the year.  The funds generated could accelerate Antero’s lease acquisition and drilling activity.

    We will have to watch Antero closely to see if some of these funds could be used to purchase more leases and/or increase drilling activity.

 

  • Magnum Hunter takes possession of super rig.  Magnum Hunter Resources announced today that the Company's wholly-owned subsidiary, Alpha Hunter Drilling, LLC ("Alpha Hunter") has taken possession of a new Schramm T500XD robotic drilling rig. The Company plans to utilize the Schramm T500XD drilling rig to drill exclusively Company owned wells planned in the Utica formation located in Southeastern Ohio for the next three years. With the addition of this new drilling rig, Alpha Hunter's fleet has now grown to five rigs.

    Unlike traditional drilling rigs which are on rails and only allow movement from left to right or front to back, the T500XD has a walking subbase which lifts the entire rig six inches above the ground allowing the rig to turn and rotate. The rig can walk at a pace of 30 feet per hour and move a full 360 degrees. The T500XD implements the Load Safe XD automated pipe handling system, which racks drill pipe horizontally for easy loading and offloading, dramatically improving operator safety. The T500XD is capable of drilling up to a total depth of approximately 19,000 feet, offers best in class 35,000 foot-pounds of top head torque, third party directional steering interface and 80,000 pounds of hydraulic pulldown capacity. These characteristics provide the Company with maximum flexibility to utilize the drilling rig in a number of different shale plays actively being drilled in the U.S.

 

  • Ohio drilling update (Thanks Mike Chadsey, EID, OH).  To date, there have been 627 permits issued by the Ohio Department of Natural Resources for wells in the Utica/Point Pleasant geological formation. Of those 627 permitted wells, 310 of them have been developed, and 89 of those are in production.
    Thus far, Utica Shale permits have been issued in the following 22 counties:
  • Ashland -1
  • Belmont – 22
  • Carroll – 249
  • Columbiana – 68
  • Coshocton – 5
  • Geauga – 1
  • Guernsey – 34
  • Harrison – 80
  • Holmes – 3
  • Jefferson – 33
  • Knox – 2
  • Mahoning – 17
  • Medina – 1
  • Monroe – 27
  • Muskingum – 3
  • Noble – 32
  • Portage – 14
  • Stark – 13
  • Trumbull – 4
  • Tuscarawas – 13
  • Washington – 4
  • Wayne – 1

    All of these permits have been provided to 27 companies that are developing Ohio’s shale resources:
  • Anadarko E&P Company LP – 12
  • Antero Res Appalachian Corp – 22
  • Atlas Noble – 5
  • BP – 1
  • Carrizo Utica LLC – 3
  • Chesapeake Appalachia LLC – 6
  • Chesapeake Exploration LLC – 394
  • Chevron Appalachia LLC – 4
  • CNX Gas Company LLC – 22
  • Devon Energy Production Co - 13
  • Eclipse Resources LP – 1 
  • Enervest Operating LLC - 16
  • EQT Production Company – 3
  • Gulfport Energy corporation – 47
  • Halcon Operating Company Inc. – 3
  • Hall Drilling – 1
  • Hess Ohio Develop. LLC – 11
  • Hess Ohio Resources LLC – 7
  • HG Energy LLC – 16
  • Hilcorp Energy Company – 3
  • Mountaineer Keystone LLC – 7
  • Petroleum Development Corp – 5
  • R E Gas Development LLC – 13
  • Sierra Resources LLC – 3
  • Swepi LP – 1
  • Triad Hunter – 3
  • XTO Energy Inc. – 5
  • Baker Hughes Rigs count for the May 4 reporting week.

    • PA Marcellus 57 rigs – up 1
    • PA Utica 3 rigs – unchanged 
    • Ohio Utica 32 rigs – up 1
    • WV Marcellus 24 rigs  – unchanged

PA Permits for March May 2 to May 7

       County               Township               E&P Company
1.    Greene                Aleppo                  Chesapeake
2.    Greene                Franklin                 Vantage
3.    Greene                Washington           EQT
4.    Greene                Washington           EQT
5.    Greene                Washington           EQT
6.    Greene                Washington           EQT
7.    Greene                Washington           EQT
8.    Susquehanna       Liberty                  WPXs
9.    Susquehanna       New Milford            Southwestern
10.    Susquehanna     New Milford            Southwestern
11.    Susquehanna     New Milford            Southwestern
12.    Tioga                 Liberty                  Shell
13.    Washington       Carroll                   Chesapeake
14.    Washington       Union                    Chesapeake
15.    Washington       West Finley            Noble Energy
16.    Washington       West Finley            Noble Energy
17.    Westmoreland    Derry                    WPX
18.    Westmoreland    Derry                    WPX    
19.    Westmoreland    Derry                    WPX
20.    Westmoreland    Derry                    WPX
21.    Westmoreland    Derry                    WPX

OH Permits – week ending May 4


        County                    Township            E&P Companies
1.    Carroll                       Washington        Rex
2.    Carroll                       Washington        Chesapeake
3.    Carroll                       Perry                  Chesapeake
4.    Carroll                       Washington        Rex
5.    Carroll                       Fox                    Rex
6.    Harrison                    Moorefield           Gulfport
7.    Harrison                    Moorefield           Gulfport
8.    Harrison                    Moorefield           Gulfport
9.    Noble                        Seneca               Consol
10.    Noble                      Seneca               Consol
11.    Noble                      Seneca               Consol
12.    Trumbull                 Hartford              BP
13.    Trumbull                 Vienna                Halcon
14.    Washington            Adams                PDC

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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

    Northeast Supply Enhancement