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  • Permit Activity. 
    • PA -- 25 permits; EQT will be active in Greene County.
    • OH -- 10 permits; Antero getting active in Noble County.
  • 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. http://www.nwpaoilandgashub.com/
  • Upcoming Expos where we will have a booth:

Stop by and visit us.

Latest facts and a rumor from the Marcellus and Utica Shale

  • CONSOL and Noble Energy drilling in Central WV. Drilling for dry gas has dropped off in the region, but that may change as at least one company makes plans for a large-volume pipeline and additional wells in Upshur and Barbour counties.

    CONSOL Energy and Noble Energy have a joint partnership for development of the Marcellus Shale in northern West Virginia and southwestern Pennsylvania.

    CONE Gathering, the gas pipeline arm of the joint venture, will construct a 24-inch dry gas line between Audra Field in southern Barbour County and Century Field in northern Upshur County.

    The 37-mile line could signify increased drilling and economic growth in the two counties.  Much of the Marcellus Shale activity in the area has concentrated in wet gas areas, including Doddridge and Harrison counties.

    But areas with more dry gas, such as Barbour and Upshur counties, lack the infrastructure for natural gas development.

    CONE Gathering has already cleared the right of way and plans to start construction in six to nine months.

    The pipeline should be complete six to nine months after that.  Currently, the company is working on the six-well Philippi 13 pad in Barbour County.

    After drilling the Philippi 13 pad, CONSOL plans to drill one well at Audra Field and one at the Century Field to test the productivity of the company’s extensive leasehold between the two points.

    CONSOL expects to begin completion work for all eight wells sometime in the third quarter.

    CONSOL announced in January that it planned to spend $600 million on continuing to develop its extensive Marcellus Shale assets, including drilling capital of $415 million.

    The company expects to invest $74 million in related gathering and compression.
  • Northwest PA the next hot area.  According to Gas Business Briefing, Pennsylvania, birthplace of Marcellus Shale activity, generally has been divided into two major producing regions: the Southwest, which includes dry gas, but primarily features wet gas resources, and the Northeast, strictly dry gas-oriented.

    There now is a third area of the Keystone State which consultants and producers agree is worth drilling -- but Marcellus Shale isn't the only reason to poke holes in the ground.

    The drilling in NW PA is in Utica and Devonian.  The counties seeing most of the action now are Mercer and Lawrence.
  • Another processing facility goes online in NE OH.  Another link in an industrial chain Ohio hopes to see growing around the Utica Shale play was added last week with the opening of a factory in Youngstown that builds natural gas processing equipment.

    Houston-based Exterran Holdings Inc. said it built the 65,000-square-foot plant in northeast Ohio to be close to the Appalachian shale gas and oil plays. It has been supplying the region’s gas and oil operators from its Texas and Oklahoma plants.

    “Our customers are actively participating in the development and production of oil and gas in this region, including the Marcellus and Utica shale plays, making this a natural geographic fit for us,” said Exterran President and CEO Brad Childers. The $13 million plant will ship its first completed units in about three weeks and will have 100 employees at full capacity, the company said.

    Trans Energy drilling in WV.  Trans Energy has provided the following update on its activity in WV.
    • Generated a 79% increase in first quarter production to 850,938 Mcfe compared to the year ago quarter
    • Two rigs currently drilling company wells in Marion and Marshall Counties
    • Horizontal Marcellus production back online – Williams has now resolved issues that led to the shut in of some wells beginning in March of 2013
  • Halcon Utica Shale update.   Texas-based Halcon Resources is getting involved in the Utica shale in eastern Ohio and northwest Pennsylvania.
    • The Phillips well in Mercer County, PA., is on the verge of beginning production in the next week or so, said Floyd C. Wilson, chairman and CEO of the company.
    • Halcon has two rigs working now in the Utica shale
    • The company has spud eight wells, to date, in the two states.
    • The two completed wells are in Mercer and Venango counties in Pennsylvania.
    • It expects to have 10 to 12 wells drilled by mid-year, he said.
    • It has about 140,000 acres in the northern part of Ohio’s Utica shale in Trumbull and Mahoning and neighboring Pennsylvania.
    • It expects to spend about $200 million on Utica development in 2013

      The initial results from these well have been mixed.  We’ll have to wait and see how productive the Utica is in NW PA.
  •  
  • Another major Williams pipeline joint venture. Williams and Boardwalk Pipeline Partners, LP today announced that they have executed a joint venture agreement to continue the development process for Bluegrass Pipeline, a project that would transport natural gas liquids from the Marcellus and Utica shale plays to the rapidly expanding petrochemical and export complex on the U.S. Gulf Coast, as well as the developing petrochemical market in the Northeast U.S.

    Phase one of the proposed pipelines would provide producers with 200,000 barrels per day of mixed NGLs take-away capacity in Ohio, West Virginia and Pennsylvania. Phase two would increase capacity to 400,000 barrels per day to meet market demand, primarily by adding additional liquids pumping capacity. The pipeline would deliver mixed NGLs from these producing areas to proposed new fractionation and storage facilities, which would have connectivity to petrochemical facilities and product pipelines along the coasts of Louisiana and Texas.
  • Ohio completes 100th producing well.  As oil and gas companies continue to ponder the best strategy for unlocking natural resources in the Utica Shale -- and industry analysts continue to debate the merits of doing so -- data from the Ohio Department of Natural Resources (ODNR) indicate that the state has passed an important milestone: 100 horizontal wells online and in production.

    According to the ODNR, as of May 25, 686 permits have been issued for drilling horizontal wells targeting the Utica. Of those, 335 wells have been drilled and 100 are in production. The ODNR also said there were 30 drilling rigs deployed as of May 25.

    Out of the 100 producing wells, Chesapeake Energy Corp. is the largest operator with 64, with the next three largest being Anadarko (7 wells) and Gulfport Energy and Hess Corp., each with six wells. The most active counties in Ohio are Carroll (52 wells) and Harrison and Noble, each with nine wells.
  • Baker Hughes Rigs count for the May 25 reporting week. 
    • PA Marcellus 57 rigs – up 2
    • PA Utica 1 rig – down 1
    • Ohio Utica 32 rigs – down 1
    • WV Marcellus 23 rigs  – unchanged

PA Permits for March May 23 to May 29

    County            Township           E&P Company
1. Allegheny         Frazier                Range
2. Allegheny         Frazier                Range
3. Allegheny         Frazier                Range
4. Beaver             New Sewickley    Penn Energy
5. Beaver             New Sewickley    Penn Energy
6. Clearfield         Bigler                  Campbell Oil & Gas
7. Clearfield         Karthaus             Carrizo
8. Greene            Center                Alpha Shale
9. Greene            Franklin               Vantage
10. Greene          Franklin               Vantage
11. Greene          Franklin               Vantage
12. Greene          Morris                  EQT
13. Greene          Morris                  EQT
14. Greene          Morris                  EQT
15. Greene          Morris                  EQT
16. Greene          Morris                  EQT
17. Greene          Morris                  EQT
18. Greene          Morris                  EQT
19. Greene          Morris                  EQT
20. Greene          Morris                  EQT
21. Greene          Morris                  EQT
22. Jefferson       Snyder                 Flatirons Develop.
23. Washington   Buffalo                Range
24. Washington   Morris                 CONSOL
25. Washington   Smith                  Range

OH Permits – week ending May 25

    County          Township   E&P Companies
1. Carroll            Loudon      Chesapeake
2. Carroll            Loudon      Chesapeake
3. Carroll            East           Chesapeake
4. Carroll            Lee            Chesapeake
5. Columbiana    Hanover    Chesapeake
6. Columbiana    Franklin     Chesapeake
7. Columbiana    Franklin     Chesapeake
8. Noble             Seneca       Antero
9. Noble             Seneca       Antero
10. Noble           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

 

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