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  • Permit Activity. 
    • PA – 14 permits; Talisman is focusing on Susquehanna
    • OH – 15 permits; Permits are back up; Noble County is becoming an active county.
  • Oil and Gas Seminar in Columbus, OH on September 12th with Gulfport Energy and Caiman Energy; contact me for details.
  • Expo activity.
  • Advertising in Facts & Rumors – due to many inquiries, we have decided to accept advertising in Facts & Rumors.  Our newsletter goes to over 2500 businesses in the oil and gas industry in the Marcellus & Utica Shale region.  If you are interested in placing a banner ad in the newsletter, please contact me. 

Latest facts and a rumor from the Marcellus and Utica Shale

  • Marcellus backlogged wells.  The number of backlogged wells in Pennsylvania's Marcellus Shale grew even as the number of rigs working the play dropped, Barclays Bank said Friday, setting the stage of for another year of explosive production growth.

    Using data from the Pennsylvania Department of Environmental Protection and Platts' Bentek unit, Barclays said the number of wells awaiting completion or a pipeline grew 8% to 1,546 in the first half of this year when compared with the last half of 2012.

    "With more than 1,500 wells in the backlog, if all wells in the backlog were brought online within a year, production growth could exceed the growth experienced in 2012," Barclay’s analyst Shiyang Wang said in a note to clients.

    Wang said she expects production from the Utica and Marcellus Shale region to grow another 46%, 3.6 Bcf/d, this year to 11.44 Bcf/d and another 29%, 3.3 Bcf/d, in 2014.

    DEP production data, released twice a year, indicated that Pennsylvania's Marcellus gas production grew 58% from first-half 2012 to first-half 2013.

    "Given the infrastructure expansions that we are expecting to see in the Marcellus, we believe that production growth in the Marcellus should outpace last year's level," Wang said.
  • Philly Cracker.  The Philadelphia PA area may get a cracker plant before Western PA. (Rumor)
  • Anadarko bullish on 2014.  Anadarko drilling activity may double in 2014.  (Rumor)
  • Antero hits it big in Monroe County, OH.  Following the release of Antero Resources second quarter financial results, it seems this independent oil and gas producer is now the current record holder for the highest producing well in the Utica. Antero’s Yontz well peak rate tested at a whopping 38.9 million cubic feet a day (Mmcf/d) equaling to an astonishing 8,879 barrels of oil equivalent a day (BOE/d) in Monroe County.

    While most companies would be happy to have a single well putting out such outstanding numbers, Antero has a whole host of phenomenal wells they have tested over the past year. This is great news for both Antero, who is currently operating in both Noble and Monroe Counties, and the region.
  • Shell Cracker could be getting closer.  Shell has begun a two-month bidding period to solicit ethane commitments from Marcellus Shale operators for its proposed Beaver County cracker, the company said today.

    Ethane, a natural gas liquid found in shale gas in western Pennsylvania, can be turned into ethylene, a feedstock for the petrochemical industry.

    If Shell Chemical, a division of Royal Dutch Shell, decides to build the first world-scale cracker in the Marcellus region, some of its ethane would come from Shell's own oil and gas production in the region.

    In addition, the company has already secured commitments from Consol Energy Inc., Noble Energy Inc., Seneca Resources Corp., and Hilcorp Energy Co.

    Still, it's looking for more and the bidders' responses will play a role in whether the company decides to go ahead with the project. It has twice extended its land option agreement with Horsehead Corp. for the property in Monaca that Shell is evaluating for the cracker.

    The two-month period began Monday.

    "Securing additional ethane supply is one of the key components in determining the next steps as part of the ongoing site evaluation process," Kimberly Windon, a spokeswoman for Shell, said.

    Companies can submit their bids until Oct. 4 and must sign a confidentiality agreement which will give them the details about the proposed project not available publicly.

    "Shell Chemical still has several critical milestones to achieve before making a final investment decision on whether to proceed with construction of this proposed complex," Ms. Windon said.
  • Antero could be the most aggressive driller in 2014.  Antero will have 18 rigs in WV and 8 rigs in OH in 2014  (Rumor)
  • Devonian has fourth driller.  A new, third layer of shale deep beneath the surface of western Pennsylvania is showing promise as a source of natural gas.

    It might not prove to be as lucrative as the Marcellus or Utica Shale region, but CONSOL Energy Inc. says it is thrilled by the Upper Devonian rocks, a mixture of shale and sandstone layers that could become an added energy source.

    The company recently announced it successfully has drilled its first natural gas well in that earth layer in southwest Pennsylvania. Initial results for natural gas are very promising, the company said July 15 in a statement.

    CONSOL is the third drilling company to tap into the Upper Devonian in Pennsylvania, a move that could provide a boost to shale production and adds to the growing promise of the formation.

    Pittsburgh-based EQT Corp. became the fourth player. It announced that it has drilled eight wells in that rock in Pennsylvania, four of which are complete. It expects to drill 22 Upper Devonian wells this year, officials said.

    Specifically, CONSOL Energy drilled its well into the Burkett shale, the deepest of numerous Upper Devonian Shale wells.

    It lies above the Marcellus Shale generally at a depth of 6,000 to 6,500 feet below the surface.

    To date, about 20 wells have been drilled into the Upper Devonian Shale in Pennsylvania, according to Energy in Depth’s Pittsburgh office.

    CONSOL Energy’s first exploration hit the Burkett Shale at 12,490 feet deep in Greene County, the company said in its quarterly operations update. The lateral runs about 4,889 feet.

    The well produces about 3 million cubic feet of natural gas per day, about a third of what two nearby Marcellus wells produce, the company said.

    CONSOL Energy estimated that it controls about 300,000 acres of Upper Devonian Shale with commercial potential in Pennsylvania and West Virginia. The company is also active in Ohio’s Utica shale.

    Rex Energy got similar production from an Upper Devonian well it drilled last year in Pennsylvania’s Butler County, said the company, based in State College, Pa. It is also involved in Ohio drilling.

    Texas-based Range Resources has drilled four wells in Pennsylvania’s Washington County. Its latest well is producing about 4 million cubic feet of natural gas per day, in addition to 172 barrels of oil and 826 barrels of natural gas liquids. That is equal to 10 million cubic feet of oil equivalents per day.

    Range Resources is the No. 2 player in Pennsylvania in the Marcellus and Utica Shale region. It is not drilling in Ohio.
  • Statoil is on the ground.  Statoil is will be drilling in the Marcellus and/or Utica Shale.  Statoil is on the ground.  We’ll be looking for information about a Statoil rig or two.  (Rumor)

Rig Count

  • Baker Hughes Rigs count for the August 23 reporting week.
    • PA Marcellus 51 rigs – up 2
    • PA Utica 1 rigs – down 1 (per the article above, I am hopeful Baker Hughes will start counting Upper Devonian rigs.  The rig count is PA is under represented.)
    • Ohio Utica 34 rigs – down 2
    • WV Marcellus 36 rigs  – down 1

PA Permits for August 22 to August 29, 2013

    County               Township       E&P Company

1. Greene               Cumberland    Energy Corp. of Am
2. Susquehanna     Apolacon        Talisman
3. Susquehanna     Apolacon        Talisman
4. Susquehanna     Apolacon        Talisman
5. Susquehanna     Apolacon        Talisman
6. Susquehanna     Apolacon        Talisman
7. Susquehanna     Apolacon        Talisman
8. Susquehanna     Apolacon        Talisman
9. Susquehanna     Apolacon        Talisman
10. Susquehanna   Apolacon        Talisman
11. Washington      Donegal         Chesapeake
12. Washington      Hanover         Range
13. Washington      Hanover         Range
14. Wyoming          Windham        Chesapeake

 OH Permits – week ending August 23, 2013

    County           Township  E&P Companies

1. Columbiana      Franklin    Chesapeake
2. Columbiana      Salem       Hilcorp
3. Columbiana      Salem       Hilcorp
4. Guernsey         Oxford      Chesapeake
5. Harrison           Rumley     Chesapeake
6. Harrison           Rumley     Chesapeake
7. Harrison           Rumley     Chesapeake
8. Harrison           Rumley     Chesapeake
9. Noble               Marian      CNX
10. Noble             Marian      CNX
11. Noble             Seneca     Antero
12. Noble             Seneca     Antero
13. Noble             Marian      CNX
14. Washington   Adams      PDC
15. Washington   Adams      PDC

The second half of 2013 is going to be active.  Become a member of to tap into this future growth.

Joe Barone 610.764.1232
Vera Anderson 570.337.7149
Andrea Bagnell 610.256.1898

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