Last year Chesapeake Energy paid out nearly $300 million in Barnett Shale royalties and this year plans to drill over 300 new wells.
Texas Gas
Chesapeake Will Drill Over 300 Barnett Wells in 2011
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.
Range Resources: Methane and Benzene in Household Wells
Two household water supplies in Texas were found to contain methane and benzene. Range Resources is working to restore their water supplies and determine the source of the gas. More at the New York Times.
Chesapeake Energy Buys More Eagle Ford Shale
Chesapeake Energy will purchase rights to 23,180 acres of Eagle Ford Shale in Texas from Antares Energy Ltd. for $200 million. More at the Oil and Gas Journal.
Natural Gas Reserves Shoot Up for Shale States
The Energy Information Administration has published a map that shows the increase in wet natural gas proved reserves by state for 2008-2009. There were huge increases for the states with large shale gas plays such as Marcellus Shale, Haynesville Shale, Fayetteville Shale, Eagle Ford Shale and the Barnett Shale.
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.
The Bovine Natural Gas Play (Texas)
A company in Texas is offering to take manure from farmers and convert it into natural gas. More at BusinessWeek.com.
Macquarie and Freeport Propose a Texas LNG Export Terminal
Macquarie Group Ltd. and Freeport LNG propose a $2 billion LNG export terminal on the Gulf coast, near Galveston, Texas to ship Barnett Shale gas to overseas markets. More in the Star-Telegram.
Record Well in the Barnett Shale – 17.8 MMcf/day
Chesapeake Energy had a Barnett Shale well in north Texas produce an average of 17.8 million cubic feet per day for the month of September. The well now holds the Barnett Shale record for monthly natural gas production from a single well. More at iStockAnalyst.com.
Recycling Hydraulic Fracturing Water
A company working in the Barnett Shale play has a portable unit that recycles hydraulic fracturing fluid. The unit distills the fracturing fluid – which recovers clean water for reuse and concentrates dissolved materials for disposal. More on the Star-Telegram.com website.
Two New Eagle Ford Pipelines
An article on the Oil and Gas Journal website describes two new pipeline projects by Energy Transfer Partners that will serve wells in the Eagle Ford Shale.
Natural Gas Liquids: The Bonus in Some Eagle Ford Wells
A well with some natural gas liquids production can be worth a lot more than a well that simply produces gas. An article in the WinnipegFreePress website explores natural gas liquids increasing the value of Eagle Ford properties.
Determining the Real Price of Natural Gas Shale Acreage
How much is an acre of natural gas shale rights worth? Perhaps the best way to determine that is to calculate how much the big companies pay when they buy assets from one another. Shouldn’t they have a better handle on the value of the gas than just about anyone? Sometimes the prices will surprise you. An article in Daily Worth looks at big transactions and sees prices of $10,000 and $12,000 per acre in the Eagle Ford.
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.
Drilling for Natural Gas Under Houston Parks
The City of Houston, Texas is considering a plan to allow a horizontal well to drain natural gas from beneath several city parks in exchange for lease payments and potential royalties. More at the Houston Chronicle.
Barnett Shale Production Plateaus as Prices Fall
“Despite a sharp decline in Henry Hub spot prices from the levels reached in the summer of 2008, natural gas production in the Barnett shale in Texas continued to climb through the middle of 2009 and appears to have reached an undulating plateau since then. Production growth in the Barnett shale comes from several large natural gas producers who continued to maintain strong production even in an environment of relatively low natural gas prices.” Quoted from the Energy Information Administration’s Natural Gas Update.
36″ Pipeline Blast in Texas
Workers drilling utility pole holes are blamed for hitting a 36-inch natural gas pipeline in Texas that triggered an explosion, killing three people. More at Reuters.com.
New Pipelines in Texas and Louisiana
Energy Transfer Partners is building pipelines in Texas and Louisiana to carry natural gas produced from the Haynesville Shale. More in an article at UPI.com.
First LNG Export Plant for the Conterminous US
An abundance of natural gas in the Louisiana-Texas-Arkansas area has prompted Cheniere Energy to consider building the first LNG (liquefied natural gas) export terminal in the conterminous United States. More at Businessweek.com
140 Miles of Eagle Ford Pipeline
The Oil and Gas Journal reports on a 140-mile oil pipeline that originates in Karnes County, Texas and connects to the main system in Austin County.
Lawsuit Over Broken Barnett Shale Promises
A few landowner associations in Texas reached agreements with large natural gas producers in early 2008 but the producers never delivered leases to individual landowners. Now the landowners are organizing for a court challenge. More in the Star Telegram.
Goodrich Petroleum Buying Shale Acreage
Goodrich Petroleum is buying acres in the Eagle Ford and Haynesville Shale gas plays. More at Reuters.
Using Infrared Cameras to Find Emission Violations
An article on the DallasNews.com website explores how infrared cameras might be used in Texas to identify natural gas industry facilities with illegal emissions.
Errors in EIA Natural Gas Production Data
The United States Energy Information Administration admits that it has been overestimating the natural gas production for Texas and Louisiana. More at Reuters.
Royal Dutch Shell Leases 150,000 Eagle Ford Shale Acres
An article in the Houston Chronicle reports that Royal Dutch Shell has leased 150,000 acres over the Eagle Ford Shale bringing their estimated gas holdings to a total of 21 trillion cubic feet.
Water Injection Correlates with Texas Earthquake Activity
A study of seismic activity near Dallas/Fort Worth International Airport by researchers from SMU and UT-Austin reveals that the operation of a saltwater injection disposal well in the area was a “plausible cause” for the series of small earthquakes that occurred in the area between October 30, 2008, and May 16, 2009.
Home Rule and Natural Gas Drilling
Calvin Tillman, the Mayor of Dish, Texas gave a two hour presentation on how to prevent the harmful effects of natural gas drilling at the Elmira Heights Theater in Elmira Heights, New York. He encouraged local officials to “take control” of what happens in their jurisdiction. More at The Online Leader.
17 mmcf/day From An Eagle Ford Well
Pioneer Natural Resources reports that one of their wells in the Eagle Ford shale of Texas had an initial production rate of 17 million cubic feet of natural gas per day. A fantastic yield for a shale well. More in a Reuters article.
Hazardous Emissions from Natural Gas Wells?
The Texas Commission on Environmental Quality conduced toxic vapor tests to detect hazardous emissions from natural gas drilling sites in the Fort Worth area. None of the 126 sites tested had contaminant levels that exceeded regulatory standards. More in a Star-Telegram article.
