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NewsLetters

  • Permit Activity. 
    • PA – 21 permits; Seneca getting active in Elk County
    • OH –14 permits; Chesapeake still one of the top permitting companies with permits in Carroll, Columbiana and Harrison Counties
  • Expo/Event activity.
    • The Pathway to CNG Conversion for Fleets and Municipalities, November 7, the Union League 140 S. Broad Street, Philadelphia, PA.

      This one day conference explores the technical, strategic, financial, and operational issues involved with CNG conversion, explaining the real costs and returns of switching over to cheaper, cleaner burning CNG. It brings together the region’s top natural gas professionals, financial professionals and infrastructure experts to discuss key steps in the conversion process and explain why now is the time to convert to CNG.

      To learn more http://www.marcellusdelval.org/register-for-cng-conversion/
       
    • DUG East Conference & Exhibition, November 13-15, 2013 Pittsburgh, PA.   David L. Lawrence Convention Center

      Join Hart Energy in Pittsburgh for the 5th annual DUG East conference and exhibition. This premier Marcellus and Utica Shale event brings top executives from the most active operators in the Appalachian Basin to the stage. This year you'll hear from executives at Range Resources, EnerVest Ltd., Halcon Resources, Cabot Oil & Gas, CONSOL Energy, PDC Energy, Eclipse Energy and many more. These expert speakers will offer their unique insight on the many discoveries, technical achievements and new challenges associated with bringing the Marcellus and Utica plays to full, safe and economic production. 

      Make plans to attend today! Click here to learn more and register.
  • 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

  • Shell could close down drilling in PA and Texas.  We heard that Shell may be auctioning off all of its equipment in the Texas and PA.  Shell  may be closing down all its on land drilling in the U.S. and focusing on offshore drilling. 
    As the result of this information, we called a couple of companies that have been working with Shell to see if they are still working for Shell.  All companies have said that they are not doing any new work for Shell now.

    If you’ve been following the acquisitions of Aubrey McClendon, he’s buying Shell’s leases in OH.

    It’s important to note that the Shell business unit responsible for the cracker plant is separate from the exploration and production business unit.  Based upon previous rumors, it seems that Shell’s cracker could happen in PA.

    We were told that the Shell announcement about the cracker plant would be happening before Thanksgiving.  We’ll monitor this closely.
     
  • Lower Nat Gas prices spawning another new industry.  Banking on cheap shale gas and high oil prices, nearly a dozen projects intent on converting about 3 Bcf/d of natural gas to higher value products such as diesel and jet fuel are proposed for construction in the US in the next decade.

    Still gas-to-liquids (GTL) projects are not only new to the US, but are relatively new worldwide. And GTL projects will likely be competing with other uses -- liquefied natural gas exports, power generation and others – for natural gas feedstock.
     
  • Shale gas brings German company to OH.  German industrial conglomerate Avanco Group has chosen Heath in Licking County for its first U.S. auto parts plant, where it plans to employ 59 in a few years.

    According to Avanco’s website, Xperion produces carbon fiber composites. The Ohio Development Services Agency released a project summary showing the company plans to develop, manufacture and market compressed natural gas cylinders reinforced with lightweight, carbon fiber for the automotive, bulk transport and storage applications.

    If you attended last week’s Utica Summit 2014, you would have heard about foreign companies building manufacturing plants in America because of the lower natural gas prices.  Here’s one example of this trend.  There will be many more.
     
  • Chevron sells leases to Chesapeake in WV.  Although global oil giant Chevron is fracking in Marshall County's Marcellus Shale, the California-based company has sold about 1,500 Ohio County acres to Chesapeake Energy.

    According to documents filed in the Ohio County Clerk's office, Chevron assigned 29 separate agreements to Chesapeake for drilling. The parcels range in area from as little as 1 acre to as much as 258 acres, with most of the acreage found in the northern portion of the county.

    To this point, only Chesapeake Energy has actually drilled Marcellus Shale wells in Ohio, Brooke or Hancock counties in West Virginia. Chevron, Trans Energy, Consol Energy, Magnum Hunter, Stone Energy, Gastar Exploration and several others join Chesapeake in working in Marshall, Wetzel and Tyler counties.
     
  • Consol selling coal to focus on gas. CONSOL Energy is selling its Consolidation Coal Co. subsidiary and five West Virginia mines to Murray Coal Co., refocusing its attention on gas production in the Marcellus shale region.

    The sale enhances CONSOL Energy's ability to grow its gas production, enabling the company to extend its gas growth production targets beyond 2014.
     
  • Knox County, OH possibly getting active.  3-D Seismic testing by a JV between Artex and Knox Energy could be starting in the near future.  (Rumor)
     
  • McClendon buying acreage in Guernsey County, OH.  Veteran shale observer Jim Willis of the Marcellus Drilling News has more news about Aubrey McClendon and his developing plans in Ohio's Utica shale.

    Willis reports today that McClendon, the colorful one-time CEO of Chesapeake Energy Corp., has acquired 24,000 acres in Guernsey County.

    He has acquired lease holdings in Guernsey County held by SWEPI LP (a Shell company).

    The leases covered 24,650 acres (gross) and 24,010 acres (net).
    The price paid by McClendon and his new company, was not disclosed in the paperwork filed on Oct. 10 with the county recorder's office.
     
  • Seneca drilling a test well in McKean County, PA.  Seneca Resources, a subsidiary of National Fuel, announced in its fourth quarter report that it began testing the Mount Jewett Utica Shale well this month.
     
  • Southwestern expanding in NE PA.  Southwestern expects to drill its first well in Sullivan County on a portion of the undeveloped acreage it purchased in May of 2013. The company's first wells in Wyoming and Tioga Counties are currently scheduled early in 2014.

    Southwestern has drilled primarily in Bradford, Lycoming and Susquehanna Counties in PA.
     
  • More midstream development for a long time.  Estimates are that natural gas will provide about 40 percent of the fuel used to make electricity by 2035. According to the Interstate Natural Gas Association of America, between 29,000 and 62,000 miles of additional pipelines would need to be built in both the United States and Canada. And between 370-600 billion cubic feet of storage is also required. The cost: Between $133 billion and $210 billion over the next 20 years.
     
  • Fourth plant planned for Scio, Columbiana County, OH.  Just three months into production, a potential expansion of Utica East Ohio Buckeye's Kensington cryogenic plant in Columbiana County is already in the works, says a top oil and gas executive.

    "We have a fourth plant that is planned to sit on that site," said Frank Tsuru, president of M3 Midstream, which along with Access Midstream and EV Energy Partners operate the UEO Buckeye system.

    Initially, the plan was to have three processing operations, or "trains," at the Kensington site, Tsuru said. "We've got three sanctioned to be built and a fourth one in the event we need more processing capacity. We've already purchased the land to grow to four."

Rig Count

  • Baker Hughes Rigs count for the October 25 reporting week.
    • PA Marcellus 56 – up 1
    • PA Utica 2 – unchanged
    • Ohio Utica 34 rigs – up 1
    • WV Marcellus 30 rigs  – down 1

PA Permits for October 25 to October 31, 2013

    County              Township       E&P Company

1. Bradford             Wilmont          Chief
2. Bradford             Wilmont          Chief
3. Elk                      Jones              Seneca
4. Elk                      Jones              Seneca
5. Elk                      Jones              Seneca
6. Elk                      Jones              Seneca
7. Elk                      Jones              Seneca
8. Lycoming            Eldred             Inflection Energy
9. Susquehanna     Brooklyn         Cabot
10. Susquehanna   Brooklyn         Cabot
11. Susquehanna   Jackson           Southwestern
12. Susquehanna   Jackson           Southwestern
13. Susquehanna   Jackson           Southwestern
14. Susquehanna   Jackson           Southwestern
15. Susquehanna   Lenox              Southwestern
16. Washington      Amwell            Range
17. Washington      Cross Creek    Range
18. Washington      Cross Creek    Range
19. Washington      Cross Creek    Range
20. Wyoming           Lemon            Chief
21. Wyoming           Lemon            Chief

 OH Permits – week ending October 26, 2013

    County         Township    E&P Companies

1. Belmont        Somerset    Gulfport
2. Belmont        Somerset    Gulfport
3. Carroll           Lee             Chesapeake
4. Carroll           Perry          Chesapeake
5. Columbiana   Franklin      Chesapeake
6. Columbiana   Franklin      Chesapeake  
7. Guernsey      Spencer      EQT
8. Harrison        Archer        Chesapeake
9. Harrison        Archer        Chesapeake
10. Harrison      Archer        Chesapeake
11. Mahoning    Jackson      Halcon
12. Noble          Marion        Antero
13. Noble          Marion        Antero
14. Noble          Marion        Antero

Take advantage of the bullish outlook and become a member in ShaleDirectories.com now or and secure your budget for membership in 2014.

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Joe Barone jbarone@shaledirectories.com 610.764.1232
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