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  • Permit Activity. 
    • OH issued another record number of permits – 22; drilling moving further south
    • PA issued 28 permits; Washington County had the most
  • Learn about the opportunities coming from the Shell cracker plant – “Fueling Our Economic Growth with Natural Gas” scheduled for June 18th, 2013 at Cross Creek Resort in Titusville, Pa.  This event is focused on the business opportunities available due to the growth of the natural gas industry and the planned building of a cracker plant in Western Pennsylvania.

Latest facts and a rumor from the Marcellus and Utica Shale

  • Shell is looking to buy Enervest. It makes sense since Enervest put 539,000 Utica Shale acres on the auction block in September 2012.  If this happens, it would certainly increase drilling activity in OH. (Rumor)
  • Finally, permitting info from WV (Thank you Farm & Dairy Magazine) The West Virginia Department of Environmental Protection issued permits to drill through the Marcellus Shale in Wetzel, Ohio and Marshall Counties.
    In Wetzel County, permits were issued for five locations.

    A permit was issued to Chesapeake Appalachia, LLC for a location owned by Ridgetop Capital, LP. HG Energy, LLC. received permits for drilling on a farm owned by Francis D. and Freeda M. Brown. The Stone Energy Corporation was issued permits for a farm owned by the Stone Energy Corporation, and also permits for a farm owned by Lawrence Zumpetta.

    In addition, EQT Production Company was issued permits for two sites. They include a farm owned by Kathy S. Edgell and one owned by Richard M. and Mary G. Underwood.
    • Ohio County

      In Ohio County, the West Virginia DEP issued two separate permits to Chesapeake Appalachia LLC. for drilling on property owned by Clarence S. and Charlotte Farmer and Carl J. and Grace A. Rotter.
    • Marshall County

      The DEP also issued a permit to Chesapeake Appalachia for a farm owned by Van L. Aston in Marshall County.
  • Atlas Resource Partners (ARP) active in Lycoming County, PA.   ARP recently completed seven horizontal Marcellus Shale wells on two pad sites in Lycoming County, PA. All of these Marcellus Shale wells have been drilled with funding from ARP’s partnership management programs.  These wells are currently shut in and awaiting pipeline, which is expected in early third quarter 2013.

    ARP currently expects to drill an additional 15 Marcellus Shale wells in Lycoming Co. through the end of 2014 within its partnership management programs.
  • Chevron testing in Cambria County, PA.  Chevron hopes to develop a Marcellus Shale well in Jackson Township in the fall.

    Chevron officials say they expect to have a state mining permit soon that will allow them to drill an assessment well on a multi-acre site alongside Blackburn Road. 

    If all goes as planned, construction – primarily excavation work – will begin in August or September on a sportsmen’s club property to get the pad site ready for drilling, said Mikal Zimmerman, Chevron’s policy and public affairs officer.

    “We’re starting with one well. And adding this well. ... And the information we gather from it will help us determine how to proceed next,” said Zimmerman, noting the gas the well yields will give Chevron officials the “hard data” they need to decide whether more wells should follow nearby.
  • Crosstex Energy investing in the Ohio River Valley.  The Crosstex Energy announced that the Corporation has agreed to invest approximately $25 million in a third natural gas compression and condensate stabilization facility in the Ohio River Valley. The Corporation will make the investment in E2, a company formed in March 2013 with the former management of Enerven Compression Services to provide services for producers in the liquids-rich window of the Utica Shale play. The Corporation’s initial investment commitment in E2 of approximately $50 million is funding the construction of two similar facilities. The E2 investment complements the Partnership’s assets in the Ohio River Valley, which encompass crude oil, condensate and logistics operations in the Utica and Marcellus Shale plays.
  • MarkWest is getting even more active in the Utica.
    • In February 2013, MarkWest Utica EMG announced the execution of definitive agreements with Rex Energy Corporation to provide gathering, processing, fractionation, and marketing services in the Utica Shale. MarkWest Utica EMG expects to begin providing the full-suite of midstream services for Rex by the end of the second quarter of 2013.
    • In March 2013, MarkWest Utica EMG announced the execution of definitive agreements with PDC Energy to provide gathering, processing, fractionation, and marketing services in the Utica Shale. MarkWest Utica EMG expects to begin providing the full-suite of midstream services for PDC by the end of the second quarter of 2013.
    • In May 2013, MarkWest Utica EMG announced the execution of definitive agreements with CNX and an additional producer to provide processing, fractionation, and marketing services in the Utica Shale.
    • In May 2013, MarkWest Utica EMG is commencing operations of Cadiz I, a 125 MMcf/d cryogenic processing facility in Harrison County, Ohio. Cadiz I is supported by fee-based agreements with Gulfport Energy Corporation and Antero and other producers.
  • Exxon finds a home for its natural gas liquids.  They’re going to Texas.  Exxon Mobil Corp.  the largest energy company by market value, signed an agreement with Qatar Petroleum International to move forward with construction of a $10 billion natural gas export terminal in Texas.
    The project will involve installing liquefaction equipment at an existing import facility in Sabine Pass, Texas, according to an e-mailed statement today from Golden Pass Products LLC, a subsidiary formed by the two companies. It won permission last year to export the fuel to nations with free-trade agreements with the U.S. and is awaiting approval to send the fuel to all other countries.

    Exxon, based in Irving, Texas, and state-owned Qatar Petroleum plan to ship as much as 15.6 million metric tons of gas annually from the Golden Pass facility, according to the statement. A boom in U.S. production has spurred several proposals to export the fuel, which is cooled to liquid form at -260 degrees Fahrenheit (-162 Celsius) to reduce volume and allow for transportation by ship.

    Exxon has been expanding its worldwide gas portfolio with acquisitions such as the 2010 purchase of XTO Energy in the U.S. and investments in projects that include the A$52 billion ($52 billion) Gorgon LNG complex in Australia. Gas accounted for half of Exxon’s global production during the first three months of this year.

    Findlay Township, Allegheny County, PA approves its first Marcellus Shale gas wells.  Findlay supervisors voted tonight to approve the development of three Marcellus Shale natural gas wells on Clinton-Frankfort Road

    Range Resources-Appalachia LLC representatives said initial drilling could begin as early as August on about 10 acres of private agricultural land
  • Antero continues to focus on the Marcellus and Utica.  Antero in reporting its first quarter results for 2013 stated that it has 14 rigs in the Marcellus all in WV.  Antero plans add one more rig in the second quarter of 2013.  In the Utica in OH, Antero has 2 rigs Southeastern OH.
  • Gulfport Energy getting more aggressive in the Utica.  Gulfport will spend approximately $500 million on the Utica Shale, six times what the company has budgeted for any other region, and plans to drill up to 60 Utica wells as it goes from three to seven horizontal rigs.

    We had previously reported that Gulfport will drill 50 wells and will have 4 rigs in the Utica, but this latest information indicates its bullish attitude toward the Utica.
  • Consol becoming a gas company as it moves away from coal.  Consol Energy wants investors to start viewing it as more of a gas company than a gas and coal conglomerate, and is prepared to sell assets to finance more drilling in the gas fields of Appalachia, company Chief Executive Officer J. Brett Harvey said this morning.

    Consol's growing presence in Pennsylvania's Marcellus Shale and Ohio's Utica Shale will be funded in part through the selling or restructuring of other elements of its portfolio, such as its barge or pipeline businesses.
  • Anadarko will comment on Utica plans later in the year.  Anadarko has 13 wells permitted or drilled in Ohio in Coshocton, Guernsey, Muskingum and Noble counties. But there are reports that the company has largely halted Ohio drilling. The company has said its Ohio plans will be disclosed later this year.
  • Major Utica Shale pipeline to run to Detroit and Ontario.  A large pipeline proposed for transporting natural gas from eastern Ohio’s Utica shale through Detroit and into southern Ontario would run under several communities in the Akron-Canton area.

    The 250-mile pipeline would cross Stark County and into the cities of Green and New Franklin in southern Summit County, then into Medina County. It would pass under Wadsworth and Guilford, Montville, Lafayette, York and Litchfield townships.

    The pipeline’s eastern terminus would be in Ohio’s Utica shale area, although an exact location has not been disclosed.

    Three companies — Detroit-based DTE Energy, Houston-based Spectra Energy Corp. and Calgary-based Enbridge Inc. — are advancing the project, called the Nexus Gas Transmission system. It carries a price tag of $1.2 billion to $1.5 billion.

    The pipeline could be operating as early as November 2016, subject to market demand and regulatory approvals.
  • Baker Hughes Rigs count for the May 10 reporting week. 
    • PA Marcellus 56 rigs – down 1
    • PA Utica 3 rigs – unchanged
    • Ohio Utica 32 rigs – unchanged
    • WV Marcellus 24 rigs  – unchanged


PA Permits for March May 8 to May 14

    County                Township            E&P Company
1. Bradford              Burlington            Chesapeake
2. Bradford              Monroe                Chesapeake
3. Bradford              North Towanda    Chesapeake
4. Bradford              Smithfield             Chesapeake
5. Bradford              Wyalusing            Chesapeake
6. Greene                Center                  Chevron
7. Greene                Franklin                 Vantage
8. Lycoming             Jordan                   XTO (Exxon)
9. McKean                Hamlin                  Shell
10. Potter                West Branch         Ultra Resources
11. Susquehanna    Clifford                  Southwestern
12. Susquehanna    Jackson                 Southwesern
13. Washington       Amwell                  EQT
14. Washington       Amwell                  EQT
15. Washington       Amwell                  EQT
16. Washington       Amwell                  EQT
17. Washington       North Franklin       Range
18. Washington       North Franklin       Range
19. Washington       North Franklin       Range
20. Washington       Smith                    Range
21. Washington       Smith                    Range
22. Washington       Somerset              Rice
23. Washington       Somerset              Rice
24. Washington       Somerset              Rice
25. Westmoreland   Donegal                WPX Energy
26. Wyoming            Washington         Citrus Energy
27. Wyoming            Washington         Citrus Energy

OH Permits – week ending May 11

    County         Township    E&P Companies
1. Carroll           Fox             Chesapeak
2. Carroll           Fox             Chesapeake
3. Carroll           East            Chesapeake
4. Carroll           East            Chesapeake
5. Carroll           Loudon       Chesapeake
6. Harrison        German       Chesapeake
7. Harrison        North          Chesapeake
8. Harrison        North          Chesapeake
9. Harrison        North          Chesapeake
10. Harrison      North          Chesapeake
11. Harrison      North          Chesapeake
12. Harrison      North          Chesapeake
13. Harrison      North          Chesapeake
14. Jefferson     Smithfield    Hess
15. Mahoning    Poland         Hilcorp
16. Mahoning    Poland         Hilcorp
17. Noble          Seneca        Consol
18. Noble          Seneca        Consol
19. Noble          Seneca        Consol
20. Noble          Seneca        Consol
21. Noble          Seneca        Consol
22. Trumbull      Mecca          Brammer Eng.

Take advantage of a bullish 2013 and become a member.

Joe Barone 610.764.1232
Vera Anderson 570.337.7149
Andrea Bagnell 610.256.1898


Utica Summit 2019