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  • Permit Activity.
     
    • PA – 3 permits; everyone was on spring break last week.
    • OH –13 permits; Gulfport and Chesapeake are driving permits.


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

Seminar schedule:

  • 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, PA 2014 Business, Gas and Job Expo April 30- Visit us at booth 8
  • Ohio Valley Oil and Gas Expo April 30-May 1, Belmont County – Visit us at booth 42
  • Jobs Energy Rally May 6, Harrisburg, PA – 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.  http://unitedshaleadvocates.com/
  • Shal-Abration May 10, Cambridge, OH
  • PIOGA 2014 Eastern Oil and Gas Trade Show and Conference May 13-14, Heinz Field, Pittsburgh, PA
  • DUG East Conference and Exhibition June 3-5, Pittsburgh, PA
  • Midstream Ohio 2014 June 11, Canton, OH – this event will provide a good update of midstream activity in OH with speakers from: 
    • Blue Racer
    • Access Midstream
    • Momentum
    • EQT Midstream Partners
    • EnLink Midstream (merger of Crosstex and Devon Midstream)
  • Northern Tier Marcellus Shale Expo June 18, Mansfield, PA


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
It’s Official!

Shale Directories, LLC will be launching its national online directory on May 1st.  ShaleDirectories.com will be the only national online directory covering these shale plays:

Marcellus/Utica
Eagle Ford
Permian
Bakken
Niobrara shale plays

Now, you can reach all major shale plays at one place.
 
 
  • Magnum Hunter focuses on the Marcellus and Utica. Magnum Hunter Resources Corp. is ditching its Canadian oil and gas operations to focus on its core assets in the Utica and Marcellus shale plays.

    The company is selling more than 52,000 acres to an undisclosed company for $75 million Canadian ($67.5 million U.S.).
     
  • Unions support drilling.  After early complaints that out-of-state firms got the most jobs, some local construction trade workers and union members in Pennsylvania, Ohio and West Virginia say they're now benefiting in a big way from the Marcellus and Utica Shale oil and gas boom.

    That vocal support from blue-collar workers complicates efforts by activists and environmentalists to limit the drilling process known as fracking.

    "The shale became a lifesaver and a lifeline for a lot of working families," said Dennis Martire, the mid-Atlantic regional manager for the Laborers' International Union, or LIUNA, which represents workers in numerous construction trades.

    Martire said that as huge quantities of natural gas were extracted from the vast shale reserves over the last five years, union work on large pipeline jobs in Pennsylvania and West Virginia has increased significantly. In 2008, LIUNA members worked about 400,000 hours on such jobs; by 2012, that had risen to 5.7 million hours.
     
  • Marcellus legacy wells depletion rate is increasing.  In its latest April/May 2014 shale gas productivity report, the Energy Information Agency’s (EIA) now projects the Marcellus shale formation will lose an estimated 352 million cubic feet per day (Mmcf/d) of shale gas production from legacy wells for May 2014.

    The EIA report shows well productivity daily losses increasing from 200 Mmcf/d since May 2013. The agency estimates a gain in production from new or recently connected Marcellus shale gas wells of 605 Mmcf/d but only a net gain of 256 Mmcf/d after production losses from legacy wells. Total daily shale gas production in the Marcellus is estimated by the EIA to reach 14,772 MMcf/d for May 2014; a slight increase above April 2014’s projected 14,520 MMcf/d. The agency estimates new well productivity is coming from roughly 140 new rigs working the formation.

    We’ll have to monitor this trend to see if the increasing depletion rates will lead to more drilling activity.
     
  • Antero to drill at Piedmont Lake, OH.  For a lease worth $15,000 per acre – an amount more than twice the previously known high payment for Marcellus and Utica shale exploration in the Upper Ohio Valley – Antero Resources will drill on more than 6,300 acres at Piedmont Lake.

    The resulting payment of nearly $95 million to the Muskingum Watershed Conservancy District – not including the 20 percent of production royalties that will come once Antero begins extracting oil and gas from the property – will also help the district reduce the amount of taxes it collects from eastern Ohio landowners.
     
  • Williams sending Marcellus gas to GA.  Williams Partners today announced that its Transco pipeline system received binding commitments from shippers for 100 percent of the 448,000 dekatherms of firm transportation capacity under its Dalton Expansion Project, which would support providing access to Marcellus shale gas supplies to customers in northwest Georgia for incremental electricity generation and growing local distribution load. Additionally, AGL Resources has entered into agreements with Williams Partners to jointly fund the Georgia lateral portion of the expansion.
     
  • McClendon hires Chesapeake.  Aubrey McClendon, the pioneering shale wildcatter who helped usher in the U.S. energy renaissance, has hired the company that fired him to drill wells for his newest natural gas venture.

    A subsidiary of McClendon’s American Energy Partners LP is paying between $23,500 and $26,000 a day to rent seven rigs from Chesapeake Energy Corp., the Oklahoma City-based gas producer he co-founded a quarter century ago, according to a proxy filing today.

    Chesapeake, which terminated McClendon, last year amid a shareholder revolt, signed the six-month agreements in October, according to the filing. Chesapeake’s rigs are drilling for American Energy-Utica LLC in the Utica shale formation that stretches beneath much of Ohio.
     
  • Cabot drilling outlook for 2014.  Since the inception of Cabot’s horizontal drilling program in 2008, the Company has utilized the latest technological advancements to maximize operational efficiencies in its Marcellus operations. From drilling longer laterals with shorter frac stage spacing to testing tighter down spacing between laterals, Cabot has continued to optimize its development of this world-class asset and 2013 was no different.

    Cabot’s Marcellus program exceeded all expectations in 2013, further highlighting the truly prolific nature of the perfectly-mature, highly-structured geology across the Company’s leasehold. The Company currently anticipates drilling 110 to 120 net Marcellus wells in 2014 while operating six rigs for the year.

    Cabot plans to drill over 60 percent of its Marcellus wells in 2014 on pads with five or more wells, allowing for increased operating efficiencies and cost savings. Approximately 73 percent of the Company’s 2014 capital program will be allocated to the peer-leading rate of return projects in the Marcellus. With over 3,000 identified locations in the sweet spot of the play, implying over 25 years of inventory at current drilling levels, Cabot’s future in the Marcellus Shale remains bright.
     
  • EQT reports strong quarter and discussed midstream business.  EQT Corp. rode an increase in gas production from the Marcellus shale to post $192.2 million in income during the first three months of the year, a 92-percent jump from the same period last year.

    The company on Thursday announced earnings of $1.26 per share. The stock's price at 10 a.m. was $109.98.

    EQT cited a 30-percent increase in gas production during the quarter and said it drilled 64 wells in that time, 46 in the gas-rich Marcellus. The company will complete and evaluate five wells it drilled last year in the Utica shale in Ohio, but said it will put off any further drilling there until at least next year.

    Its pipeline company, EQT Midstream Partners, announced $34.9 million in earnings for the quarter.

    “Most of our efforts recently have been to ensure capacity on long-haul pipes to sell to other markets,” said CEO David Porges.

    The company is building a $300 million, 35-mile pipeline into Ohio, where it can connect to lines that run north or to the Gulf Coast for potential export. And it's planning a second “Ohio Express” pipeline to go further west.
     
  • Carrizo focusing on the Southern Utica.  Carrizo has chosen to focus its leasing and drilling activities on the southern portion of the Utica Shale, primarily in Guernsey and northern Noble Counties, Ohio, which is believed to be  prospective for liquid-rich gas and condensate.

    During 2014, Carrizo expects to spend approximately $110 million to drill and complete 9 gross (7 net) operated wells as well as participate in several non-operated wells. We currently have more than 120 net potential drilling locations on our acreage, giving us over a 10-year drilling inventory at a one rig pace.
     
  • Gulfport looks at 2014.  The second-most-active oil and gas producer in Ohio expects 2014 to be a “transformational year.”

    Gulfport Energy Corp. plans capital expenditures in the Utica shale play up to $634 million on its 167,700 acres this year, it said in an investor presentation. It plans just up to $91 million in its other two locations in Louisiana and Canada.

    Clearly, the Oklahoma City-based company is banking on the Utica play. Last year, Gulfport reported average daily production of 11,300 barrels of oil equivalents per day, much of that coming from the Utica play. This year, it projects an average of 55,000 barrels of oil equivalents per day with the vast majority coming from the Utica play.

    The company plans to drill 85 to 95 wells and thinks its acreage covers a healthy mix of wet gas and oil – 52 percent – and dry gas – 48 percent.
     
  • Power plant coming to Marshall County, WV.  A new, $615 million natural gas power plant will be coming to Marshall County in the near future, county commissioners were informed this morning.

    Moundsville Power LLC will look to make use of the vast amounts of Marcellus and Utica shale natural gas in the Upper Ohio Valley. The proposed plant would be located along W.Va. 2. Company officials said they plan to have it operational by 2018.
  • Rig Count
     
    • Baker Hughes Rigs count for the April 18 reporting week.
       
      • PA Marcellus 58 rigs – up 5
      • PA Utica 1 rigs – unchanged    
      • Ohio Utica 36 – up 2 
      • WV Marcellus 23 – down 2

PA Permits for April 17 to April 24 2014

       County              Township               E&P Company
1.    Bradford            Standing Stone     Chesapeake
2.    Potter                West Branch         Ultra
3.    Susquehanna    Rush                     Chesapeake

OH Permits – week ending April 19, 2014

       County               Township             E&P Companies

1.    Belmont              Wayne                Gulfport
2.    Belmont              Wayne                Gulfport
3.    Belmont              Wayne                Gulfport
4.    Belmont              Union                  Gulfport
5.    Belmont              Union                 Gulfport
6.    Carroll                Augusta              Chesapeake
7.    Guernsey           Wills                    Amer. Energy Utica
8.    Harrison             North                  Chesapeake
9.    Harrison             North                  Chesapeake
10.  Harrison             North                  Chesapeake
11.  Harrison             North                  Chesapeake
12.  Harrison             German              Chesapeake
13.   Belmont             Mead                  XTO

Take advantage of the bullish outlook and become a member in 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



 
Northeast Supply Enhancement