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NewsLetters

  • Permit Activity.  
     
    • PA – 41 permits; everyone is going to Greene County; Talisman is back as well as Ultra.
    • OH –16 permits; all the action is Harrison and Monroe counties this week.
       
  • Expo/Industry events for the next few months:
    • PIOGA 2014 Eastern Oil and Gas Trade Show and Conference May 13-14, Heinz Field, Pittsburgh, PA.  Visit us at Booth 58.
    • 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/site/oil-and-gas-expo-information.html

Latest facts and a rumor from the Marcellus and Utica Shale

  • Hess happy with the drilling in the Utica.  It is continuing to test wells this year and expects to ramp up production in 2015, said Gregory P. Hill, president and CEO of exploration and production, in a recent first quarter 2014 report.

    “Well results from the Utica shale play are encouraging,” said John Hess, CEO and director.

    Earlier, Hess and partner Consol Energy said they intend to spend $550 million to drill 35 Utica wells in 2014 in the wet-gas window.

    In the first quarter, the two companies drilled eight wells, completed three and tested one well in the joint venture area that covers 43,000 acres.

    Hess reported that it has drilled 42 wells in the Utica, although only 15 of those wells have been tested, officials said.
     
  • Shell in PA.  Shell is looking to bring more rigs to PA. (Rumor)

    With Shell’s increased permitting activity, this could be true.
     
  • UGI announces midstream projects in NE PA.  UGI Energy Services, (UGIES) announced the further expansion of its Auburn Gathering System with the construction of a new 9-mile 24” pipeline from Susquehanna County to the Manning Compressor Station in Wyoming County along with additional compression to be installed at Manning. The new pipeline, called the Auburn Loop, will parallel the existing 12” Auburn I pipeline. The expanded system will increase the capacity of the Auburn Gathering System by approximately 200,000 dekatherms per day, bringing the total capacity of the system to 470,000 dekatherms per day. Deliveries will be available starting in the fall of 2014 with the balance of capacity becoming available in the fall of 2015.

    UGIES also announced the construction of a separate 6-mile 12” pipeline to move locally-produced natural gas to UGI Penn Natural Gas, Inc. (“UGI PNG”), one of UGI’s utilities in northeast Pennsylvania. Once this lateral pipeline, which will run from Clifford Township and terminate in Union Dale Borough, is placed into service, Marcellus Shale gas will be the predominant source of supply for UGI PNG customers. The Union Dale Lateral will be capable of moving up to 100,000 dekatherms per day with deliveries available by the fall of 2014.
     
  • MarkWest expands in WV.  MarkWest Energy Partners announced an expansion of rich-gas processing capacity in the Marcellus Shale. The Partnership will continue developing its leading presence in America’s most productive natural gas resource play with the addition of two new cryogenic processing plants at its Sherwood complex in Doddridge County, West Virginia and its Mobley Complex in Wetzel County, West Virginia.
     
  • Chesapeake update.   During the 2014 first quarter Chesapeake operated an average of nine rigs and connected 47 gross wells to sales in the Utica, compared to nine average operated rigs and 49 gross wells connected to sales during the 2013 fourth quarter. The average peak production rate of the 47 wells that commenced first production in the Utica during the 2014 first quarter was approximately 1,180 boe per day.

    As of March 31, 2014, Chesapeake had drilled a total of 485 wells in the Utica, which included 274 producing wells and 211 wells awaiting pipeline connection or in various stages of completion.

    During the 2014 first quarter Chesapeake operated an average of five rigs and connected 22 gross wells to sales, compared to five average operated rigs and 33 gross wells connected to sales during the 2013 fourth quarter. The average peak production rate of the 22 wells that commenced first production in the northern Marcellus during the 2014 first quarter was approximately 10.9 mmcfe per day.

    As of March 31, 2014, Chesapeake had 110 wells awaiting pipeline connection or in various stages of completion in the northern Marcellus.
     
  • Could more cracker plants be coming to WV?  An industry analyst said with the amount of natural gas coming out of the ground, the United States needs at least a dozen more cracker plants to handle the load.

    Tom Gellrich of Topline Analytics explained that could mean more than one cracker plant in West Virginia.
     
  • Another Utica E&P announces IPO.  Eclipse Resources, one of the few private drillers with heavy activity in the Utica shale, hopes to raise $100 million in an initial public offering.

    The State College, Pa.-based oil and gas producer notified the Securities and Exchange Commission Monday.

    Eclipse operates in eastern Ohio’s Utica and Marcellus shale, holding 227,230 acres. Of that, 96,240 acres are in the core, most-profitable section of the play, and 25,740 acres cover the liquids-rich Marcellus play, the company said in the filing.
     
  • Carrizo’s 1st quarter update.  In the Utica Shale, Carrizo's condensate production during the quarter averaged more than 380 Bbls/d. The Company's first well, the Rector 1H in Guernsey County, Ohio, has recently been shut-in awaiting midstream infrastructure following its long-term stabilized test. The well flowed up casing for 113 days, and produced more than 57 MBbls of condensate on a gross basis, or an average of more than 500 Bbls/d. Prior to being shut-in, the well had recently been flowing at a stabilized rate of approximately 420 Bbls/d of condensate and 1.8 MMcf/d of rich natural gas on a 16/64 in. choke. Carrizo has a 95% working interest in the Rector 1H well.

    Carrizo expects to spud its next Utica Shale well, the Brown 1H in northern Guernsey County, later this quarter. Carrizo will be the operator of the Brown 1H, and expects to have a 50% working interest in the well. Carrizo currently expects to drill 9 gross (7 net) operated Utica Shale wells during 2014.

    The Company is evaluating midstream solutions for its Utica production, and currently expects to have an agreement in place within the next 1-2 months. This should allow the Company to have midstream infrastructure in place in the fourth quarter.

    Carrizo has continued to expand its position in the condensate window of the Utica Shale play since the beginning of the year. The Company's acreage position in the play now stands at approximately 25,700 net acres. The additional bolt-on acreage is located primarily in Guernsey County.
     
  • Drilling could be coming back to Start County, OH. Enervest has rig in Nimishillen or Washington Township. (RUMOR)
     
  • Southwestern 1st quarter update.  Southwestern placed 21 new wells on production in the Marcellus Shale resulting in net gas production from the Marcellus Shale of 58.0 Bcf, up 147% from 23.5 Bcf in the first quarter of 2013. Gross operated production in the Marcellus Shale was approximately 823 MMcf per day at March 31, 2014.

    As of March 31, 2014, Southwestern had 193 operated wells on production and 91 wells in progress. Of the operated wells on production, 192 were horizontal wells of which 93 were located in Bradford County, 16 were located in Lycoming County and 83 were located in Susquehanna County. Of the 91 wells in progress, 36 were either waiting on completion or waiting to be placed to sales, including 10 in Bradford County and 26 in Susquehanna County.
     
  • Job rally has big turnout. Thousands of supporters of natural gas development marched to the steps of the state Capitol in Harrisburg today. Estimates of up to 3,000 people from all over the state hopped on buses and turned out for the day-long event, hosted by the state’s main gas industry trade group—the Marcellus Shale Coalition.
     
  • Another player in the Utica.  Stone Energy has stated it will drill its first Utica this June.


Rig Count

  • Baker Hughes Rigs count for the May 2nd reporting week.  
     
    • PA Marcellus 57 rigs – down 3
    • PA Utica 1 rigs – unchanged    
    • Ohio Utica 35 – unchanged
    • WV Marcellus 28 – up 1

PA Permits for May 1, to May 8 2014

       County                  Township          E&P Company
1.    Allegheny               Forward             EQT
2.    Allegheny               Forward             EQT
3.    Allegheny               Forward             EQT
4.    Allegheny               Forward             EQT
5.    Bradford                 Armenia             Talisman
6.    Bradford                 Armenia             Talisman
7.    Bradford                 Armenia             Talisman
8.    Bradford                 Armenia             Talisman
9.    Bradford                 Columbia            Talisman
10.    Greene                Aleppo                Chesapeake
11.    Greene                Aleppo                Chesapeake
12.    Greene                Morgan                EQT
13.    Greene                Morris                  CONSOL
14.    Greene                Richhill                 Noble
15.    Greene                Richhill                 Noble
16.    Greene                Richhill                 Noble
17.    Greene                Richhill                 Noble
18.    Greene                Richhill                 Noble
19.    Greene                Richhill                 Noble
20.    Greene                Richhill                 Noble
21.    Greene                Richhill                 Noble
22.    Greene                Richhill                 Noble
23.    Greene                Richhill                 Noble
24.    Greene                Springhill               Chesapeake
25.    Lycoming            Jackson                Southwestern
26.    Lycoming            Jackson                Southwestern
27.    Lycoming            Jackson                Southwestern
28.    Potter                West Branch           Ultra
29.    Potter                West Branch           Ultra
30.    Susquehanna      Choconut               Talisman
31.    Susquehanna      Choconut               Talisman
32.    Susquehanna      New Milford            Southwestern
33.    Tioga                  Richmond              Shell
34.    Tioga                  Richmond              Shell
35.    Tioga                  Richmond              Shell
36.    Washington         Donegal                Chesapeake
37.    Washington         Donegal                Chesapeake
38.    Washington         Donegal                Chesapeake
39.    Washington         Donegal                Chesapeake
40.    Washington         West Finley          Noble
41.    Westmoreland     Perry                    Campbell

OH Permits – week ending May 3, 2014

       County            Township                E&P Companies

1.    Belmont            Washington             Gulfport
2.    Harrison            Archer                    Chesapeake
3.    Harrison            Archer                    Chesapeake
4.    Harrison            Archer                    Chesapeake
5.    Harrison            Archer                    Chesapeake
6.    Harrison            Archer                    Chesapeake
7.    Harrison            North                     Chesapeake
8.    Harrison            North                     Chesapeake
9.    Monroe             Ohio                      Triad Hunter
10.    Monroe            Ohio                      Triad Hunter
11.    Monroe            Ohio                      Triad Hunter
12.    Monroe            Ohio                      Triad Hunter
13.    Monroe            Ohio                      Statoil
14.    Monroe            Franklin                  Hall
15.    Monroe            Franklin                  Hall
16.    Monroe            Franklin                  Hall


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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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