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NewsLetters

  • Permit Activity.
    • PA – 13 permits; It’s all happening in Greene County
    • OH –9 permits; Carroll County continues to be hot.
  • Expo/Event activity
    • Marcellus-Utica Midstream Conference and exhibition is scheduled January 28-30, 2014, at the David L. Lawrence Convention Center in Pittsburgh, PA. With more than 1,500 attendees and almost 200 exhibitors and sponsors, the Marcellus-Utica Midstream conference is Appalachia's premier midstream event. Each year key decision makers and stakeholders from the financial community, producers, pipeline operators, contractors, and service providers gather to review metrics and options at the Marcellus-Utica Midstream conference. Come to the Marcellus-Utica Midstream to hear the latest on the Appalachian Basin's rapidly evolving infrastructure, its impact on regional and national economies, and the outstanding business opportunities it presents.

      Make plans to attend today! Learn more and register at www.marcellusmidstream.com.
    • The Northeast Oil & Gas Awards take place on March 20th, 2014 and celebrate the best companies operating within the Northeast. If you are interested in attending the conference for excellence and the Gala Dinner in the evening please contact us info@oilandgasawards.com


Latest facts and a rumor from the Marcellus and Utica Shale

  • Price of Nat Gas is around $4.35
     
  • Cabot looking for more in 2014. Cabot announced this week that they are bringing another rig to Susquehanna County, PA which brings its rig count to 7 in 2014.
     
  • Hilcorp in Mercer and Lawrence Counties, PA. Hilcorp just got 6 permits in Jefferson Township, Mercer County, PA and Hilcorp has received approval to build 11 pads in western Lawrence County, PA. (Rumor)
     
  • Exxon’s Annual long-term annual outlook ExxonMobil predicts natural gas will be the fastest-growing major fuel through 2040.

    The company says shale gas development in North America and the emerging market for liquefied natural gas (LNG) exports will likely, “play a major role in expanding and reshaping natural gas supplies over the coming decades.”

    From the report:

    About 65 percent of the growth in natural gas supplies through 2040 is expected to be from unconventional sources, which will account for one-third of global production by 2040. North America will lead unconventional gas production, accounting for more than half the growth through most of the Outlook period.

    ExxonMobil also predicts rising standards of living will push energy demand up by 35 percent as electricity and modern fuels reach people in development countries.

    From the Associated Press:

    The report’s conclusions largely agree with those reached in other long-term energy forecasts, including a recent report by the International Energy Agency.

    The outlook predicts demand for oil and natural gas — Exxon’s main products — will grow steadily because shippers and truckers will need more diesel to move more goods and utilities will need additional natural gas to make electricity for more people.

    Use of coal, now the chief fuel for electricity and the second most important fuel in the world after oil, will flatten in the next decades and slip to third place as countries shift to cleaner natural gas. Nuclear power and renewable electricity sources such as wind, solar and biofuels will grow fastest of all, but remain a small part of the energy mix by 2040 because they will remain expensive.

    Earlier this week, the federal Energy Information Administration released estimates showing the Marcellus shale far outpacing other natural gas regions around the country.

    ExxonMobil’s subsidiary XTO Energy has 173 active wells in Pennsylvania’s Marcellus Shale, according to the most recent data from the state Department of Environmental Protection.
     
  • Magnum Hunter’s production budget for 2014. Magnum Hunter intends to allocate approximately $260 million in the Utica Shale and Marcellus Shale plays. The contemplated capital budget includes the acquisition of mineral leases in both the Utica Shale and Marcellus Shale plays. This Appalachian-focused capital program is expected to further drive the Company's production volumes and enable it to achieve its 2014 projected exit production rate of 35,000 BOEPD.

    The Company's drilling capital in 2014 will be primarily concentrated on the delineation and development of its combined 180,000 net mineral acres located in the Utica and Marcellus Shale plays of Ohio and West Virginia. Specifically, the Company' development plan will be to further delineate its acreage position located in Monroe, Noble, and Washington Counties, Ohio and in Tyler and Richie Counties, West Virginia. Magnum Hunter expects to operate two to three drilling rigs in Appalachia during 2014, and anticipates drilling approximately 23-25 gross horizontal wells.
     
  • Bigger production budgets in 2014. After speaking with some companies that work closely with E&P companies, I’m hearing a consistent theme. The production budgets for 2014 are larger than 2013, and everyone is anxious to access 2014 funds.
    As the result of this comment, I’ve heard from other individuals who share this view.
     
  • CONSOL leases 90,000 acres from Dominion. CONSOL has closed a deal with Dominion Resources to take over 90,000 acres of Marcellus and Upper Devonian Shale leases for $190 million. The deal also includes CONSOL using Dominion to pipeline their West Virginia production to market. Dominion reports in addition to the deal with CONSOL they’ve signed agreements with several other companies too, and will deliver WV production to pipelines in Ohio.

    PDC 2014 outlook. Approximately $162 million is expected to be invested in the Utica Shale in southeast Ohio to spud 18 horizontal wells, including 8 wells in the Company's northern acreage and 10 wells in its southern acreage. A second drilling rig is expected to be deployed in the second half of 2014. The Utica capital budget includes approximately $30 million to acquire additional contiguous leasehold.

    PDC is an example of increased 2014 E&P budget.
     
  • McClendon starting to ramp in the Utica. The Ohio Department of Natural Resources awarded McClendon's new company, American Energy Utica LLC, five horizontal well permits Nov. 26 that allows oil and gas exploration on the Jones property in Nottingham Township, Harrison County, OH.
     
  • Rice Energy and Alpha Natural Resources form JV. Alpha Natural Resources, Inc., a leading U.S. coal producer, today announced that it has entered into an agreement to exchange its 50 percent interest in its Alpha Shale Resources Joint Venture with Rice Energy for $200 million of Rice common stock in Rice Energy's planned initial public offering and $100 million in cash, for total consideration of $300 million. Alpha and Rice Energy entered into the 50/50 joint venture in 2010 to develop a portion of Alpha's Marcellus natural gas holdings in Greene County, Pennsylvania.
    Look for Rice Energy IPO. These funds could be used for more drilling.
     
  • Chesapeake in Beaver County, PA. It looks like Chesapeake has a rig in Chippewa Township Beaver County in PA and the rig could be there for a while. (Rumor)

Rig Count

  • Baker Hughes Rigs count for the December 6th reporting week.
    • PA Marcellus 51 rigs – down 2
    • PA Utica 2 rigs – unchanged
    • Ohio Utica 35 rigs – unchanged
    • WV Marcellus 35 rigs – up 1

PA Permits for December 6, to December 12, 2013

County Township E&P Company

1.Armstrong South BuffaloMDS Energy
2.Greene Jefferson Energy Corp of Am.
3.Greene Jefferson Energy Corp of Am.
4.Greene Jefferson Energy Corp of Am.
5.Greene Washington EQT
6.Greene Washington EQT
7.Greene Washington EQT
8.Greene Washington EQT
9.Greene Washington EQT
10.SusquehannaRush WPX
11.SusquehannaRush WPX
12.SusquehannaRush WPX
13.Washington Donegal Chesapeake

OH Permits – week ending December 7, 2013

County Township E&P Companies

1.BelmontSmith Hess
2.BelmontWheeling Hess
3.Carroll Union Chesapeake
4.Carroll Union Chesapeake
5.Carroll Center Chesapeake
6.Carroll Augusta Chesapeake
7.Carroll WashingtonRex
8.Carroll Washington Rex
9.Monroe Perry EM Energy

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

Looking for workers, advertise on ShaleDirectories.com

Joe Barone jbarone@shaledirectories.com 610.764.1232
Vera Anderson
vera@shaledirectories.com 570.337.7149
Andrea Bagnell
andrea@shaledirectories.com 610.256.1898

Midstream PA