Range Resources has entered into agreements that promise most of its 2011 natural gas production at a price of $5.12 per million BTU. Much higher than current market prices. More at the Star-Telegram website.
Natural Gas Companies
Range Resources Hedges 2011 Production
New Gathering and Processing Facilities for Marcellus and Eagle Ford Plays
El Paso Corporation and Kohlberg Kravis Roberts and Company will invest up to $500 million on natural gas gathering, processing and storage facilities in the Marcellus Shale and Eagle Ford Shale gas plays. See the KKR press release.
Chief’s Marcellus Well Averages
From a Chief press release: Recent wells placed online in Northeast Pennsylvania [...] are averaging between 4.7 and 8.0 MMcfd with an average lateral length of 2,568 ft. [...] In Central Pennsylvania, two recently completed wells had an average test rate of 4.9 MMcfd and 5.3 MMcfd with lateral lengths of 4,864 ft and 4,143 ft respectively.
Carrizo: Results from Two Eagle Ford Shale Wells
“Carrizo’s initial two Eagle Ford Shale wells were drilled from a common surface location in central La Salle County, Texas. The Mumme 10H had a 24-hour initial production rate of 1,011 barrels of oil per day while the Mumme 12H had a 24-hour initial production rate of 1,220 Bopd.” Quoted from the Carrizo press release. They are flaring 2Mmcf of gas per day waiting on pipeline.
Mozambique LNG? – First on the East Coast of Africa
Anadarko Petroleum has made a large natural gas discovery in the Rovuma Basin in the Mozambique Channel offshore of Mozambique. Three recent significant discoveries could position Mozambique to become the first LNG supplier on the east coast of Africa.
Drilling Companies Still Considering Luzerne and Columbia Counties
Encana recently announced that they are finished drilling the Marcellus Shale in Luzerne and Columbia Counties, Pennsylvania. Other companies are still considering the area or trying to sell their leases. A geologist at the Pennsylvania Survey says that at least some of the rocks there have been heated enough to advance the coal seams to anthracite rank. The Marcellus Shale was buried deeper than the coal. More at CitizensVoice.com.
Hess Corporation to Buy 167,000 Acres of Bakken Shale
Hess Corporation has agreed to purchase 167,000 acres of North Dakota Bakken Shale properties from TRZ Energy at a cost of $1.05 billion. That’s about $6300/acre. More at MarketWatch.
No Gas in Columbia and Luzerne Counties (PA)
Encana Oil and Gas announced that their two Marcellus Shale wells in Luzerne County were not commercial and that they will immediately stop drilling in Columbia County and Luzerne County, Pennsylvania. They have 25,000 acres under lease in those counties. More at The Times Leader.
Columbia and Luzerne counties are in the eastern part of the state where the rocks have been metamorphosed to a level where much of the natural gas has probably been driven off or destroyed.
China National Offshore Oil Corporation Buys into Eagle Ford Shale
CNOOC, China National Offshore Oil Corporation, has agreed to purchase a 1/3 stake in Chesapeake Energy’s Eagle Ford Shale properties in South Texas for over $1B. More at Reuters.com.
Recognizing the Potential of US Natural Gas
A blog post on the Financial Times website reviews how some of the most important oil companies from Europe and Asia were buying into natural gas plays in the United States long before major US oil companies made similar investments and before the US government seemed to pay much attention.
Major Oil is Investing Heavily in Natural Gas
An article on the St.LouisToday website explains how major oil companies are buying into the natural gas business and what might be motivating these investments.
Chevron to Buy Atlas Energy for $4.3B
Chevron announced that it will purchase Atlas Energy, a company with extensive holdings in the Marcellus Shale gas play of Pennsylvania for $4.3 billion. More at CNN Money.
Range Resources Selling Barnett to Bet on Natural Gas Liquids
Range Resources plans to sell off their Barnett Shale properties and use the money to buy into areas where natural gas liquids can be produced. More at the Star-Telegram.com website.
Natural Gas Shareholders Will Take a Beating
An article on the Business Insider website argues that the Marcellus shale will be a financial failure for shareholders of the companies involved in exploration and production. The reasons: low natural gas prices and rapid well decline curves.
If you think that this might be true maybe service companies and pipelines are better ways to invest.
CNOOC Buys Eagle Ford Shale Stake for $1.1B
CNOOC, Ltd., a Chinese company, has agreed to purchase a stake in the Eagle Ford Shale of southeastern Texas from Chesapeake Energy Corporation for $1.1 Billion. More at Yahoo! News.
Range Resources Produces 500 Mmcf/day in Third Quarter
Range Resources announced that during the third quarter of 2009 their Marcellus Shale gas wells had an average daily yield of over 500 million cubic feet.
Selling Your Natural Gas Stocks?
An article by Keith Kohl on the Energy and Capital website makes an argument for buying natural gas stocks based upon a growing demand for gas. He also weighs in on the fate of LNG import projects… but those same facilities might have some value as export terminals.
Chesapeake LNG at Sabine Pass, LA
Chesapeake Energy is working to get an LNG export terminal at their Sabine Pass, Louisiana facility. There they can receive gas from their Haynesville, Barnette and Eagle Ford fields and prepare it for shipment to other countries where the price of gas is much higher. More at PennEnergy.com.
The Impact of a Natural Gas Boom on Local Economies
An article in the TimesLeader explores the impact of a natural gas boom on local economies. Abundant natural gas jobs could draw workers away from other businesses and fuel consumption of apartments, hotel rooms, restaurant meals, building materials and drive up prices. As resource development matures the number of jobs will fall and the need for good and services will fall.
Questioning the Sanity of Big Natural Gas Shale Deals
An article in the Calgary Herald pokes at a few recent natural gas shale transactions that seemed to go for an awful lot of money considering the current price of natural gas and the abundance of natural gas opportunities.
Chesapeake Natural Gas Compression Stations
Chesapeake Energy now has permission to build compression stations in Wetzel County, West Virginia. These stations are an essential part of the pipeline system that will transport natural gas between wellhead and consumers. More at the Wheeling News-Register.
Twenty-Two Wells on One Pad
A drilling pad on the University of Texas at Arlington Campus produces in just one day, enough gas to supply nearly 1000 homes for an entire year. It can do that because 22 wells have been drilled there. More in the Star-Telegram.
Fracking Fluid Chemistry Disclosure in Wyoming
On September 15, 2010 new rules that require oil and gas companies to disclose the chemistry of their hydraulic fracturing fluids went into effect. The Wyoming Oil and Gas Conservation Commission reports that companies are providing the information as new wells are stimulated. More at Trib.com.
Chief Oil and Gas to Disclose Hydraulic Fracturing Chemistry
Chief Oil & Gas announced that they will voluntarily disclose the additives that are used in their hydraulic fracturing fluid at every Marcellus Shale well site in Pennsylvania and West Virginia. See the press release.
Estimate Natural Gas Royalties
Lots of people have leased their acreage for potential gas drilling and are curious about how much their royalties might amount to. We now have a tool to estimate gas royalty income based upon a few assumptions. You just type in your royalty rate, an assumed natural gas wellhead price, an assumed well production rate, the number of acres in the production unit and the number of production unit acres that belong to you – then push a button.
Chevron Hits More Gas in the Carnarvon Basin (Australia)
Chevron continues to find more natural gas off the northwest coast of Australia with two wells in the Carnarvon Basin. These fields are close to their Gogron LNG terminal. (See press releases from August 12 and 16.)
Driller’s Rights vs. Landowners Rights
Who owns the mineral rights beneath your property? That can determine what drilling companies can do and what rights a landowner has when drilling begins. More in an article on the ArkTimes.com website.
Chattanooga Shale Activity
Westmont Resources Inc. will acquire 92 wells in the Chattanooga Shale of Scott County and Morgan County, Tennessee that are presently owned by Domestic Energy Corp. This announcement reveals some information about the Chattanooga and the wells that have been drilled. More at the Oil and Gas Journal.
Talisman Energy Increases Shale Activity
Talisman Energy is increasing its activity as a producer of natural gas from shale with growing production in the Marcellus Shale and several wells drilled in the Utica and Montney Shales.
Indian Company Buys Into the Eagle Ford and Marcellus
According to TradingMarkets.com, Reliance Industries has a new deal to buy $1.3 billion in Eagle Ford Shale assets and in April paid $1.7 billion for Marcellus Shale assets.
