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NewsLetters

  • Permit Activity. 
    • PA – 10 permits; Chevron getting active in Greene
    • OH –20 permits; HG Energy very active in Monroe; Rice and Rex now in OH
  • Expo/Event activity
    • The OOGA Oilfield Expo is the largest event of its kind in the eastern United States.  The I-X Center is an impressive facility, uniquely capable of housing the wide array of equipment and services deployed in the oilfield.  Exhibit space has been expanded and refined, a Safety Congress component has been added, industry-specific training being offered, and completed with the Fall Technical Conference and Oilfield Symposium – bringing the decision makers, industry professionals, and suppliers together at one very impressive venue.

      http://www.shaledirectories.com/oil-and-gas-expo-information.html#ex46
       
  • Advertising in Facts & Rumors – due to many inquiries, we have decided to accept advertising in Facts & Rumors.  Our newsletter goes to over 3300 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

  • Cracker plant close in WV.  Brazilian conglomerate Odebrecht, parent of petrochemical giant Braskem, is exploring development of a petrochemical complex in Wood County, West Virginia, which would include an ethane cracker and three polyethylene plants, Governor Earl Ray Tomblin said Thursday.
     
  • Atlas Resource Partners (APR) back in the play.  ARP connected eight horizontal Marcellus Shale wells located in Lycoming County, PA, which demonstrated exceptionally strong initial flow rates.

    In September 2013, ARP began connecting its five initial wells drilled in the Utica-Point Pleasant formation in northern Harrison County, OH. Early results indicate higher levels of high-grade condensate than originally expected. Midstream service in the Utica Shale has been disrupted due to a processing plant fire which occurred in late September 2013.

    Atlas Resources sold significant holdings to Chevron in November 2010. Chevron acquired assets in the Appalachian basin which consisted of 486,000 net acres of Marcellus Shale; 623,000 net acres of Utica Shale.  Chevron is one of the largest lease holders in the Appalachian Basin as the result of this purchase.
     
  • American Energy Partners in Cambridge, OH.  Aubrey McClendon is telling people that his Ohio headquarters will be in Cambridge. (Rumor)
     
  • LNG going into locomotives.  CSX Corporation (NYSE: CSX) and GE Transportation, a division of GE (NYSE: GE) today announced an agreement to explore emissions-cutting and efficiency breakthroughs in Liquefied Natural Gas (LNG) technology for locomotives beginning with a pilot program in 2014.
     
  • Antero expanding in OH.  Antero Resources is adding a fifth rig to its Utica shale fleet in southeast Ohio.  Antero Resources has drilled 12 wells in Ohio, with another 12 wells currently in some stage of being drilled.
     
  • More gas going to the Gulf.  Kinder Morgan Energy Partners and MarkWest announced the launch of a binding open season to solicit commitments for a proposed Y-grade pipeline project to transport natural gas liquids (NGLs) produced from the Utica and Marcellus Shale to Mont Belvieu, Texas.

    “This project will provide consumers on the Gulf Coast with access to a new source of NGLs from the Utica and the Marcellus Shale resource plays,” said Don Lindley, president of NGLs for Kinder Morgan Energy Partners. “Through Kinder Morgan and MarkWest Utica EMG’s existing pipeline footprint, this project is capable of accessing all of the processing facilities in the Northeast in a cost effective manner.”
     
  • Gulfport hits another big well in Belmont County, OH with more drilling planned for 2014.  Gulfport Energy Corp. of Oklahoma is pleased with its first big gas-only well in Ohio’s Utica shale.

    The Irons 1-H well, drilled in Belmont County’s Washington Township, is producing more than 30.3 million cubic feet of natural gas per day, Gulfport officials said late Tuesday in a third-quarter earnings call with analysts.

    That initial production makes the well the No. 2 best-producing well in Ohio. It is “a very strong well,” Chief Executive Officer James Palm said.

    It is likely that the well will produce 15 million to 20 million cubic feet per day in the long run, he said.

    “The strong economics of this well appear to be very attractive on today’s commodity price environments and we look forward to drilling a number of wells in the surrounding area during 2014,” he said.
     
  • MarkWest is adding capacity.  MarkWest has begun operations at two new cryogenic gas processing plants serving shale production in the Marcellus and Utica plays in West Virginia and Ohio.

    In the Marcellus, the company has started up Majorsville V, a 200-MMcfd plant at the complex in Marshall County, WV. The new plant supports rich-gas production from Chesapeake Energy Corp. and Statoil ASA and increases total processing capacity at Majorsville to 670 MMcfd.

    In the Utica shale, MarkWest Utica EMG LLC, a joint venture between MarkWest and the Energy and Minerals Group (EMG), has started up its first cryogenic gas processing plant at the Seneca complex in Noble County, Ohio.

    MarkWest continues to expand midstream operations throughout the Northeast and currently has 21 major processing and fractionation projects under construction, said the company in a wrap-up of its recent activity and plans.

    These projects are occurring at eight large complexes in Ohio, Pennsylvania, and West Virginia and will increase MarkWest’s total processing capacity to more than 4 bcfd and total fractionation capacity to nearly 300,000 b/d by yearend 2014.

    At Majorsville, MarkWest said it expects to complete an additional 200-MMcfd plant during first-quarter 2014 and will bring on a sixth plant there in early 2016. Completing these plants will bring the complex to more than 1 bcfd of capacity.

    Also, over the next month, MarkWest will bring online at Majorsville its second large de-ethanizer in the Marcellus, doubling the company’s purity ethane fractionation capacity to 78,000 b/d in the play. Ethane produced at the new Majorsville fractionation plant will initially be delivered into the Mariner West pipeline and, later, to the ATEX and Mariner East pipeline projects.

    In Ohio, the 200-MMcfd Seneca I plant will be followed by a second 200-MMcfd plant by yearend and a third 200-MMcfd plant by second-quarter 2014 (OGJ Online, May 31, 2013).

    The Seneca complex is MarkWest Utica EMG’s second major processing complex in the Utica. By yearend 2014, total processing capacity in Ohio will reach almost 1 bcfd.

    The Seneca complex is supported by long-term, fee-based contracts with several producers said the announcement. Antero Resources Corp. will anchor the complex, and it will also support rich-gas development by Gulfport
     
  • Magnum Hunter update.  For the quarter ended September 30, 2013, the Company commenced the drilling of or participated in a total of 28.0 gross wells, of which 9.0 were operated by the Company. The Company had a 100% success rate on the 29.0 wells that were completed in the third quarter of 2013.
    Currently, the Company is running five drilling rigs (three operated and two non-operated drilling rigs); two rigs (two operated) are drilling wells in the Marcellus and Utica Shale.

    Marcellus Shale

    During the third quarter of 2013, the Company drilled 14 gross (9.5 net) wells in the Marcellus Shale. In the Company operated areas, the Company drilled six gross (5.5 net) wells, and in the Company non-operated Wetzel County, West Virginia 50/50 joint venture with Stone Energy, eight gross (four net) wells were drilled. The Company anticipates that these wells will be connected to the Eureka Hunter Pipeline System over the next 30-45 days and production therefrom will begin flowing to sales shortly thereafter.

    Utica Shale

    During the third quarter of 2013, the Company commenced drilling of one gross (0.5 net) well in the Utica Shale on the Stalder pad in Monroe County, Ohio. This well is currently being drilled as part of the Company's 50/50 joint venture with Eclipse Resources, with Magnum Hunter designated as the operator.

    Additionally, the Company has completed the fracture stimulation of the Farley well, which is its first Utica Shale well in Washington County, Ohio.
     
  • WV October permitting info.  The West Virginia Department of Environmental Protection issued permits for drilling in the shale in Tyler, Wetzel, Marshall and Ohio counties.

    In Marshall County, Gastar received one permit and Chevron Appalachian received two in the Marcellus Shale; Chevron also received a permit in the Utica Shale.

    In Ohio County, one permit was issued to Chesapeake.

    The Stone Energy Corporation received three permits to drill Marcellus shale wells in Wetzel County.

    In Tyler County, EQT Production Company and Stone Energy Corporation received permits to drill Marcellus Shale wells there.
     
  • National Fuel Gas bullish on PA.  Ronald J. Tanski, President and Chief Executive Officer of National Fuel Gas Company, stated:  Seneca had a 57 percent increase in natural gas production over the prior year, and increased its total proved reserves by 24 percent. At the same time, we saw terrific success from our delineation efforts in our legacy Marcellus acreage within the Western Development Area in Pennsylvania. Our team has done a remarkable job evaluating and understanding this acreage, and as a result, we believe we have the opportunity to drill as many as 2,000 future well locations across this acreage.
     
  • Statoil and Triad Hunter drilling in the Marcellus in Monroe County, OH.  In reviewing OH’s ODNR Marcellus permitting information, we have seen that Statoil and Hunter Triad have been drilling in the Marcellus in Monroe County since April 2013.  To date, these two companies have drilled 14 wells.

Rig Count

  • Baker Hughes Rigs count for the November 8 reporting week.  
    • PA Marcellus 54 – unchanged
    • PA Utica 2 – unchanged
    • Ohio Utica 34 rigs – unchanged
    • WV Marcellus 31 rigs  – unchanged

PA Permits for October November 8 to November 14, 2013

    County            Township    E&P Company

1. Butler               Clearfield    PennEnergy
2. Greene             Dunkard     Chevron
3. Greene             Dunkard     Chevron
4. Greene             Dunkard     Chevron
5. Greene             Dunkard     Chevron
6. Susquehanna   Apolacon    Talisman
7. Susquehanna   Apolacon    Talisman
8. Susquehanna   Rush          Williams
9. Washington      Union         EQT
10. Washington    Union         EQT

 OH Permits – week ending November 9, 2013

    County           Township        E&P Companies

1. Belmont          Smith               Rice
2. Belmont          Smith               Rice
3. Carroll             Loudon           Chesapeake
4. Carroll             Loudon           Chesapeake
5. Carroll             Perry               Chesapeake
6. Carroll             Washington     Rex
7. Carroll             Washington     Rex
8. Carroll             Washington     Rex
9. Harrison           Moorefield       Gulfport
10. Harrison         Moorefield       Gulfport
11. Monroe          Washington     HG Energy
12. Monroe          Washington     HG Energy
13. Monroe          Washington     HG Energy
14. Monroe          Washington     HG Energy
15. Monroe          Washington     HG Energy
16. Monroe          Washington     HG Energy
17. Monroe          Washington     HG Energy
18. Noble             Seneca            Antero
19. Noble             Seneca            Antero
20. Tuscarawas   Perry               Chesapeake


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