Goodrich sells proved reserves

Goodrich sells proved reserves, piece of Eagle Ford leasehold in $118 million dealIndependent oil and gas producer Goodrich Petroleum said Monday it’s selling to an unidentified buyer its proved reserves and associated leasehold in the Eagle Ford Shale for $118 million.The Houston, Texas-based company is retaining approximately 58% (roughly 17,000 acres) of its undeveloped leasehold in the play in Texas’ LaSalle and Frio counties for future development or sale, Kallanish understands.Assets being sold produced an average of roughly 2,850 barrels of oil-equivalent per day (BOE/d, approximately 75% oil) during the first quarter.The company said it expects to book a gain of roughly $50-60 million on the sale at closing, with the funds used to pay off its bank revolver, retaining the difference in cash. The monetization of our proved reserves and associated acreage from our drilling efforts to date greatly improves our liquidity while maintaining a position in the Eagle Ford for future
http://www.shaledirectories.com/blog/goodrich-sells-proved-reserves/

Fairway Energy Partners to construct crude oil storage in Houston

Crude oil storage company Fairway Energy Partners on Thursday announced the closing of an undisclosed amount of private equity financing from Haddington Ventures, with proceeds to be used to construct the first phase of the Pierce Junction crude oil storage facility.Fairway will convert three existing underground storage caverns at the Pierce Junction Salt Dome in south Houston, Texas, into crude oil storage service and will build-out all requisite pipelines, brine ponds, interconnects and pumping capacity to put the facility into commercial service, Kallanish learns.The initial phase of the project is expected to be in service by the end of 2016 and has been designed to allow for storage of roughly 10 million barrels (MMBbl). Overall, Fairway has expansion rights up to a total of approximately 20 MMBbl at Pierce Junction.Phase I also includes the construction of two separate bi-directional, 24-inch pipelines to connect the facility to the existing Houston area crude oil grid, adding
http://www.shaledirectories.com/blog/fairway-energy-partners-to-construct-crude-oil-storage-in-houston/

EQT Midstream Partners to construct $250 million header pipeline for Range Resources

EQT Midstream Partners on Thursday said it’s signed an agreement with Range Resources–Appalachia to construct a $250 million natural gas header pipeline in southwest Pennsylvania to support Range’s dry Marcellus and Utica Shale development.The 32-mile pipeline’s projected capacity is in excess of 500 million cubic feet per day (MMcf/d), and is backed by a long-term firm capacity reservation commitment, according to EQT Midstream.The master limited partnership midstreamer plans to complete the project in two phases, with phase one expected to be in-service by the third quarter of 2016, and phase two online by mid-year 2017.The majority of capital investment is expected throughout 2016 and the first half of 2017.Note: Read all of the Kallanish Commodities Energy News which is published daily online, www.kallanish.com.  Kallanish also publishes a daily newsletter, and will be happy to add your name to the distribution list.  Simply email marketing@kallanish.com. The post EQT Mi
http://www.shaledirectories.com/blog/eqt-midstream-partners-to-construct-250-million-header-pipeline-for-range-resources/

Noble closes $3.9 billion deal for Rosetta Resources

Houston, Texas-based independent producer Noble Energy said this week its $3.9 billion acquisition of Rosetta Resources, effective July 20.Rosetta stockholders overwhelmingly approved the deal, according to Noble. Rosetta is now a wholly-owned subsidiary of Noble.Rosetta stockholders will receive 0.542 shares of Noble common stock for each of their shares and cash in lieu of fractional shares, and Noble will issue roughly 41 million shares of common stock in the transaction.Noble, which has focused its U.S. drilling in Colorado and the Marcellus Shale, gains access to Rosetta’s more-than 100,000 acres in Texas’ Permian Basin and Eagle Ford Shale play. The assets produced 66,000 barrels of oil equivalent per day (BOE/d) in the first quarter. The addition of Rosetta s Eagle Ford Shale and Permian positions expands our onshore business with high-quality acreage in two premier unconventional basins, increasing our development inventory and further diversifying our portfolio, said Dave
http://www.shaledirectories.com/blog/noble-closes-3-9-billion-deal-for-rosetta-resources/

Local Natural Gas to Local People: A Conversation about Leatherstocking Gas Company with Russ Miller

The following is a guest post by Russ Miller, Vice President of Gas Supply and Marketing and a Managing Board Member for Leatherstocking Gas Company (LGC). For those of you who don’t know LGC is the newest natural gas utility in Pennsylvanian in forty years. It received authorization to serve parts of Susquehanna and Bradford County in September 2012. The Company is Joint Venture between Corning Natural Gas Holding Corporation and Mirabito Holdings Inc.LCG started building its system a few years ago. How large is the LGC system in Susquehanna and Bradford Counties now?As of July, LGC has installed 16 miles of pipe in Susquehanna County. The system currently serves 135 residential, 33 commercial and 11 public authority customers in the Bridgewater/Montrose area. And 81 additional customers are scheduled for connection on this system by November 2015.Montrose System EnlargedIn Elk Lake we serve the Elk Lake School Complex, which includes K-12 facilities, the Susquehanna County Career
http://www.shaledirectories.com/blog/local-natural-gas-to-local-people-a-conversation-about-leatherstocking-gas-company-with-russ-miller/

Oklahoma broadens oil, gas drilling regulations to curtail earthquakes

An Oklahoma Corporation Commission just-released directive means oil and gas operators in the state will face additional restrictions on disposal wells linked to man-made earthquakes, the regulator said Friday.The updated directive from the commission expands the areas for additional scrutiny of disposal wells in so-called earthquake areas of interest. It also requires operators to reduce the depths of disposal wells injecting into the Arbuckle formation, a change from earlier when they could opt to just reduce volumes.In March, the commission issued a directive to operators of more than 300 disposal wells to prove they weren t injecting through the Arbuckle and into the crystalline base. If they were, operators were told to plug the wells or reduce volumes. Seismologists have warned of the potential risks of causing earthquakes from injecting into the rock below the Arkbuckle. Though it s too soon to know the results of the first directive, seismologists agree that injection into or
http://www.shaledirectories.com/blog/oklahoma-broadens-oil-gas-drilling-regulations-to-curtail-earthquakes/

Energy Transfer makes next move in bid to buy Williams

Energy Transfer Equity, which earlier this week said it continues to pursue if proposed acquisition of Williams, said Thursday it has entered into a confidentiality agreement with Williams to pursue the Oklahoma pipeline company’s strategic alternatives process.“ETE [Energy Transfer Equity] is looking forward to engaging with Williams and working toward a transaction that will deliver compelling value to both companies stakeholders,” said Energy Transfer spokeswoman Vicki Granado.Last month, Williams rejected Energy Transfer’s unsolicited bid worth roughly $53 billion, saying the offer “significantly undervalues” the midstreamer, which has 33,000 miles of pipeline from the Gulf of Mexico to Canada, Kallanish previously reported.In response to the bid, Williams said it was opening itself up to alternatives that could include a sale or merger. Another option would be for the Tulsa, Oklahoma-based energy company to move forward with its $13.8 billion plan to purchase the rema
http://www.shaledirectories.com/blog/energy-transfer-makes-next-move-in-bid-to-buy-williams/

WPX Energy storms the Permian Basin with $2.75 billion deal for RKI Exploration

U.S. independent producer WPX Energy on Tuesday announced its acquiring privately-held RKI Exploration & Production for $2.75 billion including the assumption of $400 million of debt.The majority of RKI’s leasehold is located in the Permian Basin, the Delaware Basin located Loving County, Texas, and Eddy County, New Mexico, where the company has four rigs deployed.RKI’s liquids-rich assets include roughly 22,000 barrels of oil-equivalent per day (BOE/d) of existing production, more than half of which is oil; approximately 92,000 acres in the core of the Delaware – with roughly 98% held by production; more than 3,600 drilling locations across stacked pay intervals; and more than 375 miles of scalable gas gathering and water infrastructureThe acquisition metrics include roughly $1.1 billion for the existing production at $50,000 per flowing barrel, approximately $500 million for the established midstream infrastructure, which equates to an average of $12,500 per acre – or $1.15
http://www.shaledirectories.com/blog/wpx-energy-storms-the-permian-basin-with-2-75-billion-deal-for-rki-exploration/

A Case Study for Agile Networks and M3 Midstream LLC

Agile Networks’ Last-Mile Agility Streamlines Rural Connectivity in Multi-Local Oil and Gas Project.
http://www.shaledirectories.com/blog/a-case-study-for-agile-networks-and-m3-midstream-llc/

Amount of Utica Shale play’s potentially recoverable resources exponentially increased.

The amount of potentially recoverable natural gas within the Utica Shale play could be 782 trillion cubic feet (Tcf) more than 20 times more than the estimate just three years ago, just-released research projects.The data, made public Tuesday by the Appalachian Oil and Natural gas Research Consortium at West Virginia University, also projects the amount of crude oil contained in the Utica totals nearly 2 billion barrels – more than 200% higher than the official estimate released in 2012.“The revised resource numbers are impressive, comparable to the numbers for the more established Marcellus and a little surprising based on our Utica estimates of just a year ago, which were lower,” said Doug Patchen, director of the consortium and an acknowledged Appalachian Basin expert.The estimates represent the average of a wider range of possibly recoverable amounts of oil and gas in the Utica, which stretches beneath parts of Ohio, West Virginia, Pennsylvania and other states and includes
http://www.shaledirectories.com/blog/amount-of-utica-shale-plays-potentially-recoverable-resources-exponentially-increased/

Letter on Behalf of PA Kenworth Employees

Shared by our friends at Cabot, Ask Cabot | Info@cabotog.com, read a letter from Kenworth PA 300+ employees, on how the severance could adversely impact these individuals. AND, look deeper to how the local small businesses are impacted; grocery stores, laundry services, gas stations, restaurants, salons retailors and mom & pop establishments and more importantly the lack of jobs for the next PA generation.Tim Mitchell Tim Mitchel is the President of Motor Truck Equipment Company, now known as Kenworth of Pennsylvania. The company has expanded its presence outward from central PA to include five major locations and three satellite stores throughout the state. Other divisions today include Motor Truck Thermo King, handling refrigeration needs, and Motor Truck PacLease, serving the truck leasing & rental markets.Below is a letter Tim Mitchel wrote to Governor Wolf regarding his companies opposition to the proposed Severance Tax on the oil and gas industry and how it would negatively affe
http://www.shaledirectories.com/blog/letter-on-behalf-of-pa-kenworth-employees/

June U.S. natural gas production fell slightly from May: Bentek Energy

Natural gas production in the Lower 48 States averaged 72 billion cubic feet per day (Bcf/d) in June, down about 0.6 Bcf/d, or less than 1%, from May s average, according to analytics/forecasting firm Bentek Energy. The month-on-month U.S. production decline observed in June was largely attributed to continued maintenance events in the Northeast, said Sami Yahya, a Bentek energy analyst. The combination of reduced drilling and completion costs, as well as considerable efficiency gains in the field, has helped producers across most regions better cope with the distressed commodity prices. According to Bentek, the average cost of service companies is down about 20% since last year. Also down are drill times, which have declined, on average, by three to five days this year in a number of plays. This translates into the ability of producers to utilize less rigs but drill more wells, Yahya said. He pointed to the fact some producers say previously, they tended to drill and complete a clust
http://www.shaledirectories.com/blog/june-u-s-natural-gas-production-fell-slightly-from-may-bentek-energy/

U.S. oil production fell in May, expected to continue falling

U.S. oil production fell slightly in May and will likely continue falling until early next year, as plunging crude oil prices continue.
http://www.shaledirectories.com/blog/u-s-oil-production-fell-in-may-expected-to-continue-falling-through-early-2016-eia/

Southcross Energy Partners completes NGL pipelines

Southcross Energy Partners on Monday announced the completion of 60,000 barrels per day (BPD) Y-Grade pipeline connecting Southcross’ Woodsboro processing facility to Southcross Holdings’ 63,000 BPD Robstown fractionator near Corpus Christi, Texas.The Dallas-based natural gas processor also said its 20,000 BPD propane pipeline from Southcross’ Bonnie View Fractionator to the Corpus Christi area for delivery to end-use customers also now is flowing product.The two pipelines were part of a drop-down transaction announced in May. In addition, the first of the two fractionation trains at Robstown is operating at roughly 32,000 BPD of Y-grade. The second fractionation train at Robstown is currently in the commissioning phase and remains on target to be operational by August.“The NGL pipelines, together with the continued progress toward the completion of the Robstown fractionation complex, are a critical component of our fully integrated processing and fractionation complex in the
http://www.shaledirectories.com/blog/southcross-energy-partners-completes-ngl-pipelines/

There’s a New Player in the Marcellus

One of the U.S.’s largest coal-mining companies, Alpha Natural Resources, is growing its Marcellus Shale natural gas exploration operations.The Bristol, Virginia-based company said July 1, it’s buying EDF Trading Resources share of their 50-50 joint venture for $126 million. We expect drilling on the first pad to begin in the next 30 days, with an estimated four wells completed by the first quarter of next year, said Brian Sullivan, Alpha’s chief commercial officer.PLR s (the JV’s formal name, Pennsylvania Land Resources Holding) concentrated position when it entered into the joint venture in May 2013 was 12,000 net acres, which has since more than doubled. Additionally, two well pads have been constructed with a total of 14 permitted wells. Our current leasehold position gives us an immediate drilling inventory of more than 50 locations, Sullivan added.Alpha and EDF entered into the JV in May 2013 and pledged to develop more than 20,000 acres in southwestern Pennsylvania with
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The Problem with Natural Gas Infrastructure

As Director of External Affairs for Cabot, I was honored to testify about the problem with natural gas infrastructure in the United States in relation to America’s energy security to members of the House of Representatives Natural Gas Caucus in Washington, D.C. Natural Gas Infrastructure is VitalTo begin my testimony I tried to convey just how abundant the natural gas production is within the Marcellus Shale. I highlighted that a natural gas well that produced between 1 to 1.5 BCF over its life was a good well, a few years ago, but that today in Pennsylvania, we expect our wells to produce 17 BCF of natural gas.With this amount of proven gas, being available for decades, I then moved to discussing that Pennsylvania does not have a wide distribution network necessary to get the vast amounts of natural gas that we are producing from the Marcellus Shale to the communities who need it. Natural gas is going to be here well into the future which means that the additional pipelines to tr
http://www.shaledirectories.com/blog/the-problem-with-natural-gas-infrastructure/

Fracking Gives U.S. Manufacturers an Advantage

The average cost to manufacture goods in the U.S. is now only 5% higher than in China and is actually 10% to 20% lower than in major European economies, a new Boston Consulting Group (BCG) study estimates.Further, BCG projects that by 2018, it will be 2% to 3% cheaper to manufacture in America than in China.BCG believes part of the reason for the narrowing gap is that wages have been rising in China, while American companies have been boosting productivity faster than many of their international competitors.But BCG states that perhaps the single largest factor in narrowing the wage gap is hydraulic fracturing, fracking, which has helped dramatically drive down the price of oil and gas that’s being used in energy intensive industries such as steel, aluminum, paper and petrochemicals.BCG calculates U.S. industrial electricity prices are now 30% to 50% lower than those of other major exporters.“America’s new energy abundance can not only help restore U.S. competitiveness, but can a
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