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  • Permit Activity.
     
    • PA – 7 permits; Bradford, Greene and Susquehanna continues to be hot
    • OH –9 permits; Gulfport leasing again.
       
  • 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 $4.45. The price remains relatively high despite warmer weather coming to the Northeast.
     
  • Cabot selling LNG to Japan. Cabot Oil & Gas reported the execution of a definitive gas sale and purchase agreement with Pacific Summit Energy LLC, a wholly owned subsidiary of Sumitomo Corporation, under which Cabot has agreed to sell 350,000 MMBtu per day of natural gas from its Marcellus Shale position for a term of 20 years commencing on the in-service date of the Dominion Cove Point LNG liquefaction project currently scheduled for 2017.

    "We are extremely excited to be partnering with Sumitomo to provide a long-term source of natural gas to the Cove Point LNG facility and ultimately to the people of Japan," said Dan O. Dinges, Chairman, President and Chief Executive Officer. "This long-term firm sales agreement is another milestone for Cabot's marketing efforts and ensures the continuing development of our Marcellus Shale position in Northeast Pennsylvania for years to come."
     
  • EQT bullish on the Marcellus, Utica and Devonian in 2014. EQT Corp. plans to spend $1.9 billion during 2014 on exploration and production of natural gas, $1.1 billion of it on developing wells in the Marcellus Shale.

    EQT said 90 percent of the Marcellus plans are in southwestern Pennsylvania and northern West Virginia. That includes drilling 186 wells in the Marcellus to increase its production in the year. EQT said it would spend $145 million on the development of its 14,000 or so acres in the Utica in Ohio and $155 million to drill 30 wells in the Upper Devonian shale play, which will be co-located with its Marcellus wells.

    EQT’s spending $155 to drill in the Upper Devonian. What does it know about the Upper Devonian? Stay tuned for EQT’s venture into a new shale play……
     
  • PA Supreme finds part of Oil and Gas Act unconstitutional. The Pennsylvania Supreme Court on Thursday struck down provisions of the state's Oil and Gas Act that stripped municipalities of the power to determine where natural gas drilling activity could occur within their boundaries.

    The long-awaited decision is a blow to a 2012 law known as Act 13 that was promoted by Gov. Corbett and the Marcellus Shale natural gas industry as a means to create a uniform statewide standard for gas development.

    By a 4-2 vote, the court ruled that the zoning provisions in the law were unconstitutional, though the court disagreed on the grounds for striking down the law.

    The impact of the decision is unknown. We’ll be watching this closely and keep you informed on what it means to the industry.
     
  • McClendon thinking big. Aubrey McClendon, the former CEO of Chesapeake Energy Corp., is at it again -- this time he's linked to a complex partnership launched on Friday that seeks to raise up to $2 billion through a public offering of 100 million common units priced at $20 each.

    American Energy Capital Partners LP (AECP) filed a Form S-1 with the U.S. Securities and Exchange Commission laying out a rather vague plan to help it raise capital for the acquisition, operation and development of unspecified U.S. onshore oil and gas properties.

    AECP said it would terminate the offering one year from the filing date if it could not sell 100,000 units, asking investors to purchase a minimum of 250 units at the arbitrarily determined price of $20 each, and warning potential investors that the offering would not afford a look into the partnership’s non-existing assets or earnings potential.

    Backed by private equity, American Energy landed a joint venture with Dover, OH-based Red Hill Development LLC in October American Energy already has five horizontal drilling permits in Harrison County, OH, state records show.
     
  • Chief back in the game. Chief Oil & Gas and working interest partners Enerplus and Tug Hill have acquired MKR Holdings LLC from Chesapeake Appalachia LLC for approximately $500 million.

    The acquired assets include current month production of approximately 130,000 MCFD and approximately 40 operated wells waiting on completion or pipeline as well as undeveloped acreage. The acquisition includes leasehold in Bradford, Lycoming, Sullivan, Susquehanna and Wyoming counties in Pennsylvania.

    Chief Oil & Gas had existing working interest in many of these wells and will be increasing its ownership percentage in these and future wells as a result of the acquisition. Chief Oil & Gas currently operates more than 100 wells in the Marcellus Shale and owns approximately 210,000 gross leasehold acres.
     
  • Ohio permitting exceeds projections in 2013. The year ends with more than twice as many shale drilling permits issued for the Utica Shale play than first expected, encouraging news for Ohio backers of natural gas exploration and production.

    Earlier this year, the Ohio Department of Natural Resources projected 525 permits for shale drilling. That would’ve been a modest increase from 2012’s total of 376, but now in its most recent report, the state DNR shows 1015 permits issued to 30 companies since 2009, operating in much of eastern Ohio.

    Opportunities in the Utica Shale of eastern Ohio have convinced one of the largest refining companies in the country to step up its investment here.
     
  • Marathon announces midstream project in Columbiana County, OH. Marathon Petroleum Co. LP, based in Findlay, expects to spend between $400 million and $500 million to upgrade its transportation and midstream network in the Utica, the company says.

    Among these projects is a multimillion-dollar investment at the Wellsville Intermodal Facility in Columbiana County, where Marathon is hoping to move ahead with construction of an oil/gas transfer hub in conjunction with Harvest Pipeline Inc., an affiliate of Hilcorp Energy Co.
     
  • Rice Energy’s IPO could mean more money for production. Natural gas exploration and production company Rice Energy Inc filed with U.S. regulators on Monday to raise up to $800 million in an initial public offering of its common stock.
     
  • Nat Gas powered plant in Greene County, PA. The Observer-Reporter newspaper reported on the plans by Bayles Energy LLC for the facility to be built at an industrial park in Greene Township that would use local Marcellus Shale gas to burn. The $15 million to $20 million plant could open as soon as 2015, according to the Observer-Reporter.

    The company has plans for other gas-fired power plants in Pennsylvania and West Virginia. Its website said three of the projects, 20 megawatts each, could start power generation in the third quarter of 2014.
     
  • Canadian cracker first to use Marcellus ethane. Nova Chemicals Corp. said it will be the first plastics company to use ethane from the Marcellus Shale Basin to convert to ethylene.

    “We will be introducing our first molecules from Marcellus literally today or tomorrow to our Corunna [Ontario] cracker,” said Nova senior vice president Chris Bezaire.

    Nova has been accepting delivery of ethane from Marcellus deposits in Pennsylvania and storing it in former underground salt caverns under Sarnia. It is increasing the amount of ethane it uses in its nearby ethylene plant to lower ethylene production costs. Converting the Corunna cracker to exclusively use ethane will boost the cracker’s capacity by about 20 percent. The conversion will be complete in the first quarter of 2014.


Rig Count

  • Baker Hughes Rigs count for the December 13th reporting week.
    • PA Marcellus 51 rigs – unchanged
    • PA Utica 3 rigs – up 1
    • Ohio Utica 35 rigs – unchanged
    • WV Marcellus 34 rigs – down 1

PA Permits for December 13, to December 19, 2013

County TownshipE&P Company

1.Bradford LeroyChesapeake
2.Bradford Terry Chesapeake
3.Greene Center CONSOL
4.Greene Center CONSOL
5.SusquehannaAuburn Chesapeake
6.SusquehannaAuburn Chesapeake
7.SusquehannaBrooklynCabot

OH Permits – week ending December 14, 2013

CountyTownship E&P Company

1.BelmontWayneGulfport
2.BelmontWayneGulfport
3.BelmontWayneGulfport
4.BelmontWayneGulfport
5.CarrollLoudonChesapeake
6.CarrollLoudonChesapeake
7.MonroeSenecaAntero
8.MonroeSenecaAntero
9.MonroeSenecaAntero

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

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

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