Facts & Rumors Newsletter #448 November 20, 2021

Shale Directories Conferences

SPRING 2022 Hydrogen & Carbon Capture Conference

April 21, 2022

Stay Tuned for Registration Details

Hilton Garden Inn, Southpointe

Canonsburg, PA

www.hydrogencarbon.com

Latest facts and a rumor from the Marcellus, Utica, and Permian, Eagle Ford Plays

NatGas Looking Good for December. December natural gas futures find new footing amid export demand strength. Natural gas futures vaulted higher on Thursday as production eased, export demand jumped, and traders looked ahead to colder weather and the onset of winter storage withdrawals. The December Nymex contract rose 8.6 cents day/day and settled at $4.902/MMBtu. January added 8.1 cents to $4.995.

Good News for NatGas, Not Oil. Natural gas exports, investments expected to swell after a historically challenging year, economists say. A year of shutdowns and hurricanes threatened oil and gas production on the Gulf Coast, but economists with LSU’s Center for Energy Studies predict an upswing in natural gas investments and refinement over the next several years. Oil investments, however, have a less-than-desirable outlook. LSU professors David Dismukes and Greg Upton authored the fifth Gulf Coast Energy Outlook report and presented their findings Wednesday morning.

Mariner East Nears Completion. The imminent completion of the Mariner East project is good news for Pennsylvanians. The new section of the 16-inch pipeline in Chester County that recently was commissioned brings our current capacity to approximately 260,000 barrels per day of natural gas liquids (NGLs). We anticipate placing the final segment into service in the first quarter of 2022.

Among its many benefits, the pipeline system supplies the majority of our region’s propane demand as a vital fuel and heating source. This is especially important in light of current supply constraints for energy products and rising winter demand. Plus, many everyday items – from clothing and electronics to thousands of items used for recreation, school/work and health care – are derived from propane, ethane and butane, all of which are moved through the system.

Double E Pipeline Commences service. Summit Midstream Partners announced today that Double E Pipeline, LLC, a joint venture in which SMLP owns a 70% equity interest and serves as operator, has commenced operations. Double E is a 135-mile FERC-regulated natural gas pipeline that provides natural gas transportation services from southeast New Mexico and west Texas to downstream pipeline interconnections in the Waha Hub region.

Heath Deneke, President, Chief Executive Officer and Chairman, commented, “I’m extremely proud of and grateful for our Double E project team members and joint venture partner, who have all dedicated countless hours over the past four years to ensure that Double E was completed safely, on schedule, under budget and in an environmentally and socially responsible manner. Double E provides 1.35 billion cubic feet per day of residue gas transportation capacity to producers, processors and other prospective shippers in a capacity constrained region of New Mexico, where 80 rigs are currently operating, up from 45 rigs in 3Q 2020. Our investment in Double E drives a tremendous amount of value uplift for the Partnership going forward and we are excited to bring this critical residue gas outlet online to debottleneck growing natural gas production in the northern Delaware Basin.”

PA NatGas Technologies. Pennsylvania’s natural gas sector has pioneered the technologies and resources that power our lives, grow our economy, and drive environmental gains – key themes of MSC’s latest video series released today, which will be displayed across all social media channels.

The three, one-minute video spots demonstrate how, by prioritizing social investments, environmental performance, and creating family sustaining jobs, workers spanning the entire industry contribute to a healthier and more prosperous Pennsylvania.

“These digital video efforts connect everyday Pennsylvanians to the ways in which natural gas plays a fundamental role in all aspects of life,” Marcellus Shale Coalition President David Callahan said in a release.

From spurring job-creating investments in the energy sector to providing affordable access to reliable energy, shale development in Pennsylvania continues to be a game changer for the state.

“Pennsylvania is an energy powerhouse, and our members are dedicated to safely and responsibly producing the energy that’s essential to our nation and world,” he continued. “We’re very proud of the work we do, and our sector is committed to innovating, investing, and working responsibly to deliver the energy we need today, tomorrow and for generations to come.”

Verde Bio Holdings Coming into the Utica. Verde Bio Holdings, Inc, a growing oil and gas Company, today announced that it continues to execute on its business plans of acquiring a portfolio of revenue producing properties by agreeing to the purchase of mineral and royalty interests held by a private seller for a purchase price of $175,000 in cash, subject to price adjustments pending due diligence.

The interests to be acquired are located in Belmont County, Ohio, and are operated by Ascent Resources, which holds more than 335,000 net leasehold acres in the region, and has established itself as the premier operator in the southern Utica Shale. Ascent currently has four rigs running in the area and has recently filed an intent to drill another well on the interest being acquired. The bolt-on interests currently produce combined revenue of approximately $3,000 per month and Verde is entitled to the cash flow from production attributable to the acquisition beginning on or after November 1, 2021.The acquisition is expected to close on or before November 30, 2021.

The Company, which recently completed a successful up list to the OTCQB and qualified as Penny Stock Exempt, continues to build a diversified, revenue producing portfolio of high-quality assets.

Scott Cox, CEO of Verde, said, “We are excited about adding to the interests already acquired through this acquisition. We are currently very bullish on natural gas and this bolt-on acquisition adds to our existing portfolio of great assets in the Utica Shale. We are proud to have built a Company which is creative and flexible enough to take advantage of these deals as they come to market.”

Pipeline Capacity Expands in Northeast and Gulf. New natural gas pipeline capacity expands access to export and Northeast markets. EIA. In our recently updated Natural Gas Pipeline Projects Tracker, we estimate over 4 billion cubic feet per day (Bcf/d) of new natural gas pipeline capacity entered service in the third quarter of 2021, primarily supplying Gulf Coast and Northeast demand markets. In the Gulf Coast, three projects either entered service in the third quarter or were partially completed, totaling 3.6 Bcf/d of additional pipeline capacity. These projects connect U.S. natural gas production to growing U.S. export markets. They include: Whistler pipeline, Acadiana Expansion Project and Cameron Extension Project.

Senators Want More Drilling. Senators urge increased production of fossil fuels in reaction to spiraling energy costs. The Tuesday hearing, led by Senate Energy and Natural Resources Chairman Joe Manchin III, (D-W.Va.), showed the difficulty President Joe Biden and more liberal congressional Democrats will have in enacting climate policies to meet the goals of the international community. That includes those agreed to in Glasgow, Scotland, during a pivotal climate conference earlier this month. Manchin, who is considered the most conservative Senate Democrat and has strong ties to West Virginia’s coal industry, opened the hearing by saying he wanted to achieve energy reliability and affordability, while “also achieving our decarbonization goals.”

WV Pushes Back Against the EPA.WV seeks to limit Fed EPA role in regulating power plant emissions. A lawsuit filed by West Virginia Attorney General Patrick Morrisey and the attorney generals from 17 other states (18 states in all) will limit the federal Environmental Protection Agency (EPA) and their misinterpretation of the so-called Clean Air Act in order to regulate carbon dioxide (CO2) emissions. According to Morrisey, his lawsuit is “the biggest case before the Supreme Court” for the 2022 session. We can tell you this: The left is very nervous about the Supremes accepting this case, appealed from a lower court. They didn’t expect the Supremes to take up the case and some say it doesn’t look good for the EPA.

Crypto Mining Coming to Beaver County, PA. (Thanks, MDN) WT Data Mining and Science Corp. wants to set up a bitcoin mining operation at a compressed natural gas (CNG) facility owned by Geopetro in Darlington Township (Beaver County), PA. WT Data Mining proposes to build an electric generator at the CNG site and use natural gas to generate massive amounts of electricity required to power the company’s computers that mine bitcoin. Some of the neighbors are concerned about noise.

CO2-Free NatGas? CCS project powers grid for first time. A Texas natural gas plant has delivered emissions-free electricity to the grid for the “first time anywhere in the world” for this kind of technology, according to an announcement yesterday from clean energy company Net Power LLC. The company said its natural gas test project in La Porte, Texas, exported enough energy to power more than 1,000 homes during a first-time grid synchronization — calling the delivery a “major milestone for the energy industry.”

Utica Delivering NatGas into Transmission Lines. Utica Shale still putting a lot of gas into transmission lines. Horizontal drilling in the Utica Shale has been going on in Ohio for ten years. And despite some hiccups from COVID and up-and-down commodity prices, the 3500 operating wells are still producing incredible amounts of natural gas. For August, the Energy Information Agency says the state produced 188 billion cubic feet of gas, the vast majority of it from the shale play.

It’s back: Permian basin production projected to hit all-time high in December. Production in the US Permian basin of western Texas and south-eastern New Mexico is projected to reach all-time highs in December as operators surge to take advantage of the highest prices in several years. According to the US Energy Information Administration, unconventional oil production in the Permian basin could reach 4.95 million barrels per day in December. Note: Bloomberg also reports.

Recycling Drilling Waste Having Success. In Permian, recycling drilling waste may do more than save water. Breakwater Energy Partners has broken ground on its second commercial water recycling plant in the Permian Basin, where it will treat massive quantities of saltwater produced as a byproduct of oil and gas production. The Houston oilfield services company on Monday said its Morita facility in Howard County will be one of the largest water recycling facilities in West Texas, able to process more than 200,000 barrels per day of nonhazardous saltwater produced from shale wells

Exxon Selling in the Barnet. Exxon puts shale gas assets up for sale. Exxon has put up for sale natural gas assets in the Barnett Shale in Texas, Reuters has reported, citing a confirmation of the news by the company. The assets include 2,700 wells spread across 182,000 acres, according to the report. So far, no buyer has been identified, and no agreements have been reached on the sale, a spokeswoman for the company said.

PA Permit November 11, to November 18, 2021

County Township E&P Companies