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  • Permit Activity. 
    • PA -- 13 permits; a low number of permits most of the permits are in Washington County
    • OH -- 18 permits; another new high for weekly permits; Gulfport active in Belmont and Harrison
  • The Keystone Energy will be hosting the Pennsylvania Natural Gas Summit

    Join industry experts for an overview and panel discussion on
    Pennsylvania’s natural gas development focusing on its impact on the economy, workforce development, refineries and exportation, energy security, and beyond.

    Keynote Speaker:  Governor Tom Corbett

    Click here for details. 

  • Upcoming Expos where we will have a booth:
    Northern Tier Marcellus Expo
    http://www.shaledirectories.com/oil-and-gas-expo-information.html

  • PA Gas Expo http://www.pagasexpo.com/

    Stop by and visit us.

Latest facts and a rumor from the Marcellus and Utica Shale

  • MarkWest Energy Partners Announces Sale of Marcellus Shale Gathering Assets in West Virginia to Summit Midstream Partners.  Summit will acquire certain gas gathering assets from MarkWest in Doddridge County, West Virginia for $210 million in cash. Rich-gas gathered by these assets is dedicated to MarkWest for processing at the Sherwood complex, also located in Doddridge County, West Virginia. The transaction is expected to close in June 2013.

    The assets included in this transaction consist of over 40 miles of newly constructed high-pressure gas gathering pipelines, certain rights-of-way associated with the pipeline, and two compressor stations totaling over 21,000 horsepower of combined compression. The rich-gas gathering and compression system is supported by a long-term, fee-based contract with an affiliate of Antero Resources Corporation (Antero), anchor producer at MarkWest’s Sherwood processing complex. Antero is a leading Marcellus Shale producer with over 312,000 net acres in the southwestern core of the play. In northern West Virginia, Antero has 14 drilling rigs currently in operation and has access to 400 million cubic feet per day (MMcf/d) of fully dedicated cryogenic processing capacity at the Sherwood complex. In order to support Antero’s rapidly growing rich-gas production, MarkWest expects to install two additional plants at the Sherwood complex by mid-2014, bringing total processing capacity to 800 MMcf/d.

  • Rex Energy in Evans City, Butler County, PA.  Rex Energy will drill six Marcellus Shale natural gas wells, not four, behind the former borough water plant along Route 528. It also is doubling the amount paid to the borough for each well.
     
  • NiSource Midstream and Hilcorp’s JV Pennant Midstream getting active.  Pennant Midstream is ready to begin building a processing facility and start moving natural gas through a new pipeline as part of its $300 million project to serve the Utica and Marcellus shale plays in Ohio and Pennsylvania.

    Pennant, a joint venture between NiSource Midstream Services and Hilcorp Energy Co., is constructing a natural gas liquids processing plant near Youngstown in Mahoning County and about 55 miles of pipelines through northeast Ohio and western Pennsylvania.

    NiSource Midstream Chief Operating Officer Chad Zamarin told me gas will start flowing through the first section of the pipeline within the next few weeks. A second section will be completed by the end of the year, and the final link will be finished by the second quarter of 2014.

  • EQT becoming a major player in the Marcellus.  EQT Co. has released new projections for its Marcellus Shale drilling operations in Pennsylvania and West Virginia.

    The Pittsburgh energy company says in an investor presentation released Friday that wells in southwestern Pennsylvania and West Virginia are now expected to produce the equivalent of almost 10 billion cubic feet of gas over their lifetimes.

    That's up from previous estimates..
    • Central Pennsylvania wells are expected to produce about 6.6 billion cubic feet.
    • One billion cubic feet of gas equals about 180,000 barrels of oil.

EQT says it ultimately anticipates drilling 1,080 wells over the 95,000 acres it holds in southwestern Pennsylvania.

The company currently has 109 wells online, and owns drilling rights to about 560,000 Marcellus acres in the region.

  • Beaver County, PA gets first CNG refueling facility.  The Pennsylvania Commonwealth Financing Authority awarded a $469,292 Alternative and Clean Energy Grant to Beemac Trucking, LLC. Beemac plans to complete a Compressed Natural Gas (CNG) refueling facility in Harmony Township, Beaver County. The facility will be open to the public to refuel CNG vehicles. This will be the first CNG station in Beaver County.

  • Top 50 E&P Companies spend at record levels in the US.  According to Ernst & Young US oil and gas reserves study, US oil and gas producers significantly increased exploration, development and acquisition spending in 2012 despite a 58% decline in after-tax profits that was largely driven by low natural gas prices.

    The study analyzes US upstream spending and performance data for the largest 50 companies based on 2012 end-of-year oil and gas reserve estimates.

    Total capital expenditures for the 50 companies reached $185.6 billion – the most in the study’s history. Largely due to increased tight oil and liquids activity, exploration spending reached $26.3 billion and development spending soared to $103.4 billion

    “The increased exploration and development spend we’re seeing in this year’s study speaks to the incredible opportunity unfolding in tight oil from shale formations and the high cost of developing these unconventional resources,” said Marcela Donadio, Americas Oil & Gas leader for the global Ernst & Young organization. “Everyone wants in and they are paying a premium to play.”

  • Rig count growing in OH.  The number of drilling rigs working in Ohio's Utica shale has taken a big jump. It has grown from 30 to 37 rigs, as of June 1, reports the Ohio Department of Natural Resources.

    A total of 18 new permits were approved: eight in Harrison County, four in Belmont County, four in Carroll County, one in Columbiana County and one in Washington County.

    The Baker Hughes rig count only indicates that there are 32 rigs in OH.  We’ll try to learn how each organization tracks rig counts.

  • First Utica well drilled in Erie County, PA.  A test well drilled in Greenfield Township in March will help an Oil City company determine if it can make money extracting and selling gas from rock formations deep beneath Erie County.

    The well, by Utica Resources Inc., would tap the Utica Shale and deeper Rose Run Sandstone at depths of up to 7,500 feet, according to its drilling permit approved by the Pennsylvania Department of Environmental Protection in December.

    The company has not yet begun hydraulic fracturing, also called fracking, to release gas from the rock formations, said Utica Resources President and Chief Executive Ronald Coleman.

  • Baker Hughes Rigs count for the May 31 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 30 to June 5

    County                Township              E&P Company
1. Armstrong           West Franklin         Snyder Bros
2. Butler                  Center                    Shell
3. McKean                Bradford                 Shell
4. Sullivan                Cherry                    Chesapeake
5. Susquehanna      Auburn                   Chief
6. Washington         Amwell                   EQT
7. Washington         Amwell                    EQT
8. Washington         North Bethlehem    Rice
9. Washington         North Bethlehem    Rice
10. Washington       Somerset                Range
11. Westmoreland   Derry                      WPX Energy
12. Westmoreland   Derry                      WPX Energy
13. Wyoming            Nicholson               Chief

OH Permits – week ending June 6

    County            Township       E&P Companies
1. Belmont           Somerset        Gulfport
2. Belmont           Somerset        Gulfport
3. Belmont           Somerset        Gulfport
4. Belmont           Somerset        Gulfport
5. Carroll              Fox                 Chesapeake
6. Carroll              Fox                 Chesapeake
7. Carroll              Fox                 Chesapeake
8. Carroll              Loudon           Chesapeake
9. Columbiana     Washington     Chesapeake
10. Harrison         Moorefield       Gulfport
11. Harrison         Moorefield       Gulfport
12. Harrison         Moorefield       Gulfport
13. Harrison         Freeport          Gulfport
14. Harrison         Freeport          Gulfport
15. Harrison         Freeport          Gulfport
16. Harrison         Freeport          Gulfport
17. Harrison         Archer              Gulfport
18. Washington   Waterford        PDC Energy

 

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

 

Utica Summit 2019