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NewsLetters

  • Permit Activity. PA – 18 permits;
    • PA Gen. Energy starting to drill in Lycoming
    • OH –5 permits; Chesapeake continues to be active in permitting.
  • 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.

Visit member booths at the midstream conference

  • ShaleDirectories.com 725
  • Enerfab 712
  • 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

Look for the announcement of the finalists soon.

Latest facts and a rumor from the Marcellus and Utica Shale

 

  • 2014 begins with some interesting rumors in Northern/Northeastern PA. (Rumors)
    • Chesapeake is in NY working on a well site and drilling a horizontal well. Chesapeake will be bringing in another 2 or 3 rigs into Northern PA
    • Talisman is coming back into PA and may be bringing another 3 or 4 rigs into Northern PA
    • Chief is looking to bring in 2 or 3 rigs. Chief has been aggressively purchasing more leases.
    • Chesapeake and Talisman will be doing 3 fracks a week in the near future.
  • The Chinese are coming to Greene County, PA. Denver-based Energy Corporation of America and a unit of the world's largest coal company, China's Shenhua America Holdings, have formed a joint venture to develop 25 natural gas wells in eastern Greene County, Pennsylvania, over the next 18 months.

Shenhua America is a subsidiary of state-owned China Shenhua Energy. Fifty-year-old independent ECA explores extracts, produces and transports natural gas and oil, both in the US and worldwide.

ECA and Shenhua will split the gas, which is likely to be sold domestically. Even though Shenhua is owned by the Chinese government, it's not likely that any of the shale gas over the life of the deal will be exported.

In conversations with E&P companies in the Eagle Ford and Permian Basin, this move by a Chinese company is not surprising because Chinese company have joint ventures in these two shale plays.

  • U.S. drilling for oil and gas driving down the trade deficit. The United Stated imported only $34.3 billion more in goods and services than it exported in November, down 13 percent from October. It is the lowest monthly trade deficit in more than four years. It was strong enough to lead forecasters to dramatically upgrade their expectations of how fast the U.S. economy grew in the fourth quarter. Macroeconomic Advisers, one leading firm, bumped its estimate of GDP growth to 3.5 percent, up from 2.6 percent before the trade announcement!

This is just the beginning of the benefits of lower domestic energy costs. More benefits are coming.

  • Hess all in E&P development. Hess said that its wholly owned Hess Retail subsidiary has filed with the US Securities and Exchange Commission to spin-off the company's retail business, to concentrate on its exploration-production operations.

We’ll monitor Hess’s activity in the Utica Shale to see if the funds from this spinoff are used for E&P in OH.

  • Another midstream processing plant goes on line in OH. Pennant Midstream announced that its 200-MMcfd Hickory Bend cryogenic natural gas processing plant in the Utica Shale at New Middletown, Ohio, is ready to begin operations. The plant’s gathering system includes about 55 miles of 20- and 24-in. OD wet gas gathering pipelines. These pipelines will support delivery of more than 600 MMcfd, allowing for expansion if demand warrants, and Pennant is preparing sites for two additional plants at Hickory Bend.
  • Guernsey County, OH perspective. (Rumor)
    • AEP Utica is looking to drill a well behind the General Store in Old Washington in early Feb. AEP is drilling now in Harrison County, OH.
    • Rice will be moving their big rig from Belmont County, OH Shugert's well in Old Washington Township.
    • Bluegrass Pipeline coming thru Guernsey County, OH this year.
    • Compressor station for Antero's well below Senecaville is ready to fire up any day.
    • Gulfport is sending rigs to Guernsey soon.
    • EQT wants to drill 21 new wells in Guernsey County, OH this year.
    • Carrizo has 2 pads built, ready to drill.
  • ODNR production report. Antero Resources, Gulfport Energy and Chesapeake Energy appear to be the big winners in Ohio’s first-ever quarterly production reports from the Utica shale.

Ohio reported that the average Utica Shale horizontal well produced 137,168 thousand cubic feet of natural gas plus 5,439 barrels of oil from July to September.That means that Ohio’s 245 Utica wells in the report would, over a full year, produce nearly $1 billion in natural gas, oil and natural gas liquids.

  • Antero appeared to have the most productive natural gas wells with its 11 wells in Monroe and Noble counties. Those wells in the third quarter 2013 averaged 379,754 thousand cubic feet of natural gas. Cumulatively, the 11 wells produced 4,177,294 thousand cubic feet of natural gas in the quarter. They also produced an average of 7,295 barrels of oil in the quarter. Cumulatively, the 11 wells produced 80,240 barrels of oil in the quarter.
  • Gulfport’s 24 producing wells in Harrison, Belmont and Guernsey counties together produced 6,431,070 thousand cubic feet of natural gas in the quarter. That averages to 267,961 thousand cubic feet of natural gas in the third quarter. Those 24 producing wells also produced 194,311 barrels of oil. That averages to 8,096 barrels per well. That tops Antero’s oil production. Gulfport’s Stutzman well in Belmont County’s Somerset Township was the company’s top gas producer with 1,249,739 thousand cubic feet of natural gas in the quarter. It was the top-producing gas well in Ohio listed in the report. Gulfport’s Boy Scout well in Harrison County was Ohio’s top oil-producing well during the quarter with 41,617 barrels, the state reported.
     
  • Chesapeake Energy provided data to Ohio on 184 wells, although 21 of those wells showed zero natural gas produced in the quarter and 22 showed zero oil produced. The natural gas total for the quarter for Chesapeake was 19,401,220 thousand cubic feet. That. averages 105,441 cubic feet for the company’s 184 wells. Chesapeake also produced 829,607 barrels of oil from its Utica shale wells in the third quarter. Chesapeake has five of the Top 10 oil-producing wells.

Belmont County had the Top 5 gas-producing wells with Monroe County being No. 6 through No. 10.

The Top 10 oil wells were found in Harrison County (six), Noble County (two) and Carroll County (two).

Ohio reported that the 245 Utica Shale wells produced 1,332,477 barrels of oil and 33,606,075 thousand cubic feet of natural gas in the quarter.

B.P. America reported on one well in Trumbull County’s Johnston Township. It showed 3,869 thousand cubic feet of natural gas plus 604 barrels of oil.

XTO Energy, an Exxon mobile subsidiary, showed zero production from three wells in Belmont County.

A well in Marlboro Township in Stark County showed 1,379 barrels of oil and 21,666 cubic feet of natural gas in the quarter. The well was drilled by EnerVest Operating LLC.

Anadarko, a company that has been very quiet about its Ohio plans, showed production data from five of its seven Utica wells. One well in Coshocton and one well in Noble showed zero production.

A total of 19 companies have Utica wells that are in production.

Rig Count

  • Baker Hughes Rigs count for the January 3rd reporting week.
    • PA Marcellus 53 rigs – unchanged
    • PA Utica 3 rigs – unchanged
    • Ohio Utica 35 rigs – unchanged
    • WV Marcellus 32 rigs – unchanged

PA Permits for December 3, to January 9, 2014

County Township E&P Company

1. Bradford Athens Chesapeake
2. Butler Connoquenessing Re Gas
3. Butler Connoquenessing Re Gas
4. Butler Connoquenessing Re Gas
5. Lycoming Cummins Range
6. Lycoming Cummins Range
7. Lycoming McHenry PA Gen. Energy
8. Lycoming McHenry PA Gen Energy
9. Lycoming McHenry PA Gen Energy
10. Lycoming McHenry PA Gen Energy
11. Lycoming McHenry PA Gen Energy
12. Susquehanna Choconut WPX Energy
13. Susquehanna Liberty WPX Energy
14. Washington Donegal Range
15. Washington North Bethlehem Rice
16. Washington Smith Range
17. Washington Smith Range
18. Washington Smith Range

OH Permits – week ending January 4, 2014


County Township E&P Companies

1. Carroll Lee Chesapeake
2. Carroll Lee Chesapeake
3. Carroll Lee Chesapeake
4. Carroll Lee Chesapeake
5. Columbiana Franklin Chesapeake

Take advantage of the bullish outlook and become a member in ShaleDirectories.com now and secure your budget for membership in 2014. Put your 2014 marketing dollars to work with ShaleDirectories.com; the place where the Oil&Gas industry seeks viable partners.

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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