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NewsLetters

  • Permit Activity. 
    • PA – 7 permits; Limited permitting primarily in Northern PA
    • OH –15 permits; Harrison County may be catching up to Carroll County in Permitting
       
  • Expo/Event activity

    DUG East Conference & Exhibition, November 13-15, 2013 Pittsburgh, PA.   David L. Lawrence Convention Center
    Visit us at booth 802.


    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

  • Halcon’s Utica focus.  According to Halcon's webcast this morning, they plan to focus all of their Utica drilling in southwest Trumbull County and northern Mahoning County.

    Eclipse may be following Antero’s IPO experience.  Antero had a very successful IPO which raised almost $2 billion.  Eclipse Resources, an oil and gas company focused on drilling in Ohio's Utica shale formation, is considering an initial public offering that could come around the middle of next year, the company's chief executive said on Tuesday.

    The company, which is backed by private equity firm EnCap Investments, has over 90,000 acres in the Utica and another 20,000 acres in the Marcellus shale, also in Ohio.

    One person familiar with the matter estimated that the company could have a market capitalization of more than $5 billion.

    If Eclipse is successful with its IPO, look for more.  With Wall Street supporting E&P companies in the Marcellus and Utica, look for drilling to continue at a very high rate.
     
  • Exxon to buy BP.  Once again the financial rumor is active with the story that ExxonMobil may be purchasing BP.  That certainly seems like a stretch (Rumor)
     
  • Wastewater could be heading to barges.  The U.S. Coast Guard is seeking public comments on a proposal that would allow barges to transport shale gas wastewater.

    The wastewater is a byproduct of the drilling process, and it can include both man-made chemicals and naturally occurring heavy metals and radiation. The wastewater is currently stored at drilling sites or transported by truck or rail to treatment plants or underground deep injection wells.

    In recent years significant amounts of Marcellus Shale waste from Pennsylvania has been taken to Ohio. But the Coast Guard says barge companies are interested in taking wastewater to final disposal sites in Texas and Louisiana, too.
     
  • Schlumberger getting active in OH.  Schlumberger may be bringing three frac crews into OH.  (Rumor)
     
  • Williams investing $4.5 billion in Marshall County, WV. About 1 million residents along the Eastern Seaboard will heat their homes with Marcellus Shale natural gas drawn from northern West Virginia this winter, thanks to the Williams Energy Transco pipeline.

    Tulsa, Okla.-based Williams maintains a Moundsville field office as the company continues building $4.5 billion worth of infrastructure throughout Marshall County to process and transport methane, propane, butane, ethane and pentanes drawn from Upper Ohio Valley drilling operations.

    Recently, Williams officials announced they had completed an expansion to the 10,200-mile Transco pipeline system that is "specifically to connect Marcellus natural gas supply with Northeastern markets." The expansion should allow Williams to provide enough gas to service about 1 million homes in cities such as New York, Philadelphia, Washington, D.C., Atlanta and Charlotte, N.C.
     
  • Chesapeake is cranking.  Chesapeake reported a big jump in natural gas production in the Utica shale play during the third quarter as the company connected more wells to pipelines serving the play in eastern Ohio, West Virginia and Pennsylvania.

    Chesapeake had seen a 123 percent jump in its daily net production in the southern part of the Marcellus Shale in Pennsylvania and West Virginia. The 275 million cubic feet of gas equivalent per day was also up 33 percent from the second quarter. Seventy percent was natural gas, 17 percent NGLs and 13 percent oil.

    Chesapeake said net production in the Utica averaged approximately 164 million cubic feet of natural gas equivalent per day for the third quarter ended Sept. 30. That was a 91 percent increase compared with second quarter production, the Oklahoma City-based company said in its third-quarter earnings report.

    Chesapeake, which remains the dominant driller in eastern Ohio, said it connected 63 wells to pipeline systems in the quarter after connecting 42 in the second quarter. An industry expert told me that’s in line with the fact that more pipeline and processing facilities are coming online in the Utica, easing a production bottleneck at wellheads.

    “We expect to continue delivering organic production growth in 2014,” Lawler said. “We anticipate our growth will be led by an increase in oil production from Eagle Ford shale (in Texas) and an increase in natural gas and natural gas liquids production from the Utica and Marcellus Shales, which will benefit from new gas processing and pipeline takeaway capacity.”
     
  • Shell is active at the prospective cracker plant site.  Shell continues to have what Horsehead Holding Corp. calls an "extremely active" presence at the soon-to-be-closed Horsehead zinc plant in Beaver County, PA as the conglomerate decides whether to build a petrochemical plant there.

    Shell had "70 people crawling over the facility in the last week," Horsehead CEO Jim Hensler told analysts on a conference call Tuesday reporting Horsehead's third-quarter earnings. "They're still actively involved."
     
  • Anadarko pulling out of PA.  We have heard from a couple of different sources that Anadarko may pulling out of PA and going to Texas. (Rumor)
     
  • Gulfport Ethane to Shell cracker plant.  Gulfport wants to send the ethane it produces in Ohio’s Utica Shale to Shell’s ethane cracker plant, if that plant ever gets built. Gulfport announced on their 3Q13 analyst call yesterday that they are one of the companies who signed on during Shell’s cracker plant open season, pledging to provide ethane for the new cracker plant. Problem is, the prospects that the plant will actually get built are increasingly in doubt. Even so, we guess it’s a good plan to be first in line when/if that plant opens.

    We had reported as a rumor that Shell received 2x in commitments from its open season.

Rig Count

  • Baker Hughes Rigs count for the November 1 reporting week.  
      
    • PA Marcellus 54 – down 2
    • PA Utica 2 – unchanged
    • Ohio Utica 34 rigs – unchanged
    • WV Marcellus 31 rigs  – up 1

PA Permits for October November 1 to November 7, 2013

    County      Township    E&P Company

1. Bradford     Herrick        Southwestern
2. Bradford     Herrick        Southwestern
3. Bradford     Herrick        Southwestern
4. Butler         Clearfield    XTO (Exxon)
5. Butler         Clearfield    XTO (Exxon)
6. Lycoming    Eldred         Inflection
7. Lycoming    Eldred         Inflection
8. Bradford     Wilmont       Chief

OH Permits – week ending November 2, 2013

   County        Township     E&P Companies

1. Carroll         Perry            Chesapeake
2. Carroll         Perry            Chesapeake
3. Carroll         Perry            Chesapeake
4. Carroll         Perry            Chesapeake
5. Harrison      Athens          Hess
6. Harrison      Athens          Hess
7. Harrison      Athens          Hess
8. Harrison      Athens          Hess
9. Harrison      Stock            Eclipse
10. Harrison    Stock            Eclipse
11. Harrison    Stock            Eclipse
12. Harrison    Stock            Eclipse
13. Harrison    Stock            Eclipse
14. Monroe      Seneca         Antero
15. Trumbull    Lordstown    Halcon

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Joe Barone jbarone@shaledirectories.com 610.764.1232
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Midstream PA