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  • Permit Activity.
     
    • PA – 41 permits; Chesapeake receives 25 permits; Seneca moving into western counties in a big way. 
    • OH –19 permits; Permitting moving South; Eclipse and REX continue making aggressive moves.

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Free Oil and Gas Safety Workshop
Hosted by Cintas, Bulwark and ShaleDirectories.com

Seminar schedule:

  • April 24 at the Football Hall Fame in Canton, OH
  • May 1 at Shadowbrook Resort in Tunkhannock, PA

At the workshop, you will learn:

  • What OSHA looks for when conducting a flash fire safety inspection
  • What you need to protect your employees
  • How to build a Managed FRC Program
  • Make plans to attend today! Learn more and register at 

    www.cintas.com/flashfireworkshop
  • Expo/Industry events for the next few months:
     
    • Wyoming CCC 2014 Business, Gas and Job Expo April 30
    • Ohio Valley Oil and Gas Expo April 30-May 1
    • Jobs Energy Rally May 6 – this industry event will be the ultimate networking opportunity.  Representatives from the E&P companies and major oil field services will be at the event.  Come out and support the industry.  Register today.  
    • Shal-Abration May 10
    • PIOGA 2014 Eastern Oil and Gas Trade Show and Conference May 13-14
    • DUG East Conference and Exhibition June 3-5
    • Midstream Ohio 2014 June 11
    • Northern Tier Marcellus Shale Expo June 18

      Learn more about these expos.  http://www.shaledirectories.com/oil-and-gas-expo-information.html

Latest facts and a rumor from the Marcellus and Utica Shale
 

  • Nat Gas hanging in there.  The natural gas price seems to be hitting a floor of about $4.40-$4.50.  The driving force for pricing going forward is how hot the summer will be.
  • Talisman is back.  I have seen different Talisman representatives in the Northern Tier of PA over the past few months.  This week Talisman has received its first permit in years.  Take a look below.
  • BP rumor correction.   BP is working with Dominion not the unions to get the pipelines in place before it starts drilling.  It looks like this slowly heating up. (RUMOR)
  • CAT lands huge MarkWest order.  MarkWest Energy Partners L.P. has ordered more than 70 Cat G3600 engines, Caterpillar Oil & Gas's flagship series for gas compression applications. A combination of G3608 engines rated at 2,370 hp and G3612 engines rated at 3,550 hp will be used to support natural gas gathering operations across the Utica Shale and Marcellus Shale formations. Initial shipments of the gas compression package systems are scheduled to begin in early 2014 with deliveries scheduled throughout the year.
  • Another piece of the Shell cracker plant puzzle.  The technology company The Linde Group announced today that it has entered into an Enterprise Framework Agreement (EFA) with Shell Global Solutions International B. V. to build ethane cracking units on a global basis. The EFA is for ten years, with an option to be extended.
  • Encana pulling out of PA.  Encana Oil & Gas USA announced that two exploratory wells drilled in Luzerne and Colombia counties have not encountered commercial quantities of shale gas. Based on this, Encana has decided to discontinue operations in the two counties, which are its only Marcellus assets in Pennsylvania.
  • Antero leasing more land in SE OH.  Antero Resources Corp. is finalizing terms of an extensive oil and gas lease with Ohio's largest water conservancy district that would give the company access to 6,700 acres in Belmont and Harrison counties.
     
  • Magnum Hunter loves the Utica.  Magnum Hunter Resources Corp. is calling the Utica shale region “potentially the best shale play in the U.S.”

    The Houston-based company, last seen tapping both Utica and Marcellus shale from the same well pad in eastern Ohio, said this year that it “ expects to significantly increase reserves in the Utica shale,” where it owns more than 97,000 acres, primarily as a result of selling its Eagle Ford assets in Texas to focus on Ohio, Pennsylvania and West Virginia.
     
  • Interesting Utica tidbits from Columbus Business First.  The company with the second-highest amount of acreage in Ohio has barely drilled. Chevron Corp.  has 600,000 acres in Ohio but only seven oil and gas permits, according to the Ohio Department of Natural Resources. It’s also one of the largest leaseholders in Pennsylvania.

    The company with the most acreage in Ohio, Chesapeake Energy, has 1 million acres and has obtained 610 permits, by far the most in the state.

    The average cost to develop a well in the Utica play is between $8 million and $10 million, compared with $4 million to $6 million for the Niobrara formation in Wyoming and Colorado, $9 million for the Eagle Ford in Texas and $10 million for the oil-rich Bakken formation of North Dakota.

    Generally, the longer a company waits to buy land in the Utica play, the more expensive it is. American Energy Partners LP recently paid $924 million to buy 74,000 acres from Hess Corp. (NYSE: HES), or $12,486 per acre.
  • Marcellus Nat Gas going to Ontario.  Canadian Consul General John F. Prato said natural gas from the Marcellus region is playing a big role in Ontario: Just under 30 percent of the natural gas used daily in the province coming from the Marcellus Shale.
  • Even more need for Marcellus Nat Gas in Canada.  After expanding its petrochemical facility in Sarnia, Ontario, late last year to use Marcellus Shale ethane, Nova Chemicals is now looking at a second expansion that will use more Marcellus and Utica shale production to feed its growing operations.

    The company plans to spend between $250 million and $400 million to expand its capacity 20 percent by 2018. The project likely will require a second pipeline from the Appalachian Basin to Sarnia, according to John Hotz, vice president of corporate strategy for Nova.
  • PA Impact Fees reach record level.  As Pennsylvania shale production continues to soar, the state Public Utility Commission (PUC) announced today that impact fee revenue for 2013 hit record levels. With a total of 6,489 unconventional wells under development or in production as of December 31, 2013, shale producers contributed a total of $224.5 million in impact fees for the calendar year. This brings total impact fee revenue to more than $630 million over the past three years, in addition to the more than $2.1 billion in state tax revenue generated by the industry since 2008.

Rig Count
 

  • Baker Hughes Rigs count for the April 4 reporting week. 
     
    • PA Marcellus 53 rigs – up 3
    • PA Utica 1 rigs – unchanged    
    • Ohio Utica 38 – unchanged 
    • WV Marcellus 26 – unchanged


PA Permits for April 3, to April 10 2014

       County                Township            E&P Company

1.    Bradford              Leroy                  Chesapeake
2.    Bradford              Litchfield             Chesapeake
3.    Bradford              Litchfield             Chesapeake
4.    Bradford              Monroe                Chesapeake
5.    Bradford              Monroe                Chesapeake
6.    Bradford              Monroe                Chesapeake
7.    Bradford              Overton               Chesapeake
8.    Bradford              Troy                     Chesapeake
9.    Bradford              Tuscarora            Chesapeake
10.    Bradford            Tuscarora            Chesapeake
11.    Bradford            Tuscarora            Chesapeake
12.    Bradford            Tuscarora            Chesapeake
13.    Bradford            Tuscarora            Chesapeake
14.    Bradford            Tuscarora            Chesapeake
15.    Bradford            Tuscarora            Chesapeake
16.    Bradford            Wilmont              Chesapeake
17.    Bradford            Wilmont              Chesapeake
18.    Bradford            Wilmont              Chesapeake
19.    Bradford            Wilmont              Chesapeake
20.    Bradford            Wilmont              Chesapeake
21.    Bradford            Wilmont              Chesapeake
22.    Clarion               Porter                Northeast Nat Ener
23.    Elk                      Jones                Seneca
24.    Elk                      Jones                Seneca
25.    Elk                      Jones                Seneca
26.    Elk                      Jones                Seneca
27.    Elk                      Jones                Seneca
28.    Elk                      Jones                Seneca
29.    Elk                      Jones                Seneca
30.    Elk                      Jones                Seneca
31.    Elk                      Jones                Seneca
32.    Elk                      Jones                Seneca
33.    Lycoming            Lewis                Range
34.    Lycoming            Lewis                Range
35.    Lycoming            Lewis                Range
36.    Lycoming            Lewis                Range
37.    Susquehanna    Apolacon           Talisman
38.    Susquehanna    Auburn              Chesapeake
39.    Susquehanna    Rush                 Chesapeake
40.    Wyoming           Meshoppen       Chesapeake
41.    Wyoming           Meshoppen       Chesapeake          

OH Permits – week ending April 5, 2014

        County                 Township          E&P Companies

1.    Belmont                Richland            XTO
2.    Carroll                  Perry                 Chesapeake
3.    Carroll                  Perry                 Chesapeake
4.    Carroll                  Perry                 Chesapeake
5.    Carroll                  Perry                 Chesapeake
6.    Guernsey             Millwood            Eclipse
7.    Guernsey             Millwood            Eclipse
8.    Guernsey             Millwood            Eclipse
9.    Guernsey             Millwood            Eclipse
10.    Guernsey           Oxford               Eclipse
11.    Guernsey           Oxford               Eclipse
12.    Guernsey           Oxford               Eclipse
13.    Noble                 Beaver               Antero
14.    Noble                 Beaver               Antero
15.    Noble                 Beaver               Antero
16.    Noble                 Beaver               Antero
17.    Noble                 Beaver               Antero
18.    Tuscarawas       Clay                    Enervest
19.    Tuscarawas       Clay                    Enervest


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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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