"Utica Shale — Antero is currently operating four drilling rigs...In addition to its 12 wells on line, Antero has 12 wells either in the process of drilling, completing, or waiting on completion...Antero recently placed on line the Gary 2H well that produced at a 24-hour peak rate of 24.2 MMcf/d of natural gas, 162 Bbl/d of condensate and 3,053 Bbl/d of NGLs assuming full ethane recovery (per current industry practice and assuming typical ethane plant product recoveries of 85% to 90%). The Gary 2H had a natural gas shrink of 16% associated with 1220 Btu wellhead gas and an oil-equivalent rate of 7,246 Boe/d (44% liquids). This rate is the fourth highest peak rate announced in the Utica Shale to date. The well is located in Monroe County, Ohio..
"Marcellus Shale — Antero is currently operating 15 drilling rigs in the Marcellus Shale play...The 217 horizontal Marcellus wells that Antero has completed and placed on line since project inception had an average 24-hour peak rate of 14.9 MMcfe/d (9% liquids in ethane rejection)...Antero has access to a total of 400 MMcf/d of cryogenic processing capacity at the MarkWest Sherwood processing facility located in Doddridge County, West Virginia. Currently the Sherwood complex is running at near full capacity. Antero has committed to a third 200 MMcf/d cryogenic processing plant, Sherwood III, which is expected to go on line in the fourth quarter of 2013, a fourth 200 MMcf/d plant, Sherwood IV, expected to go on line in the second quarter of 2014 and a fifth 200 MMcf/d plant, Sherwood V, expected to go on line in the fourth quarter of 2014. These commitments provide Antero access to a total of 1 Bcf/d of Marcellus cryogenic processing capacity. Ethane is currently being rejected at the processing facility and left in the gas stream. Recently, additional third-party compression capacity came on line in eastern and central Doddridge County relieving some of the constraints on the Company's rich gas production...."
As these wells start producing, more data will be made available to the industry and about the northern tier of the play, says Harry Schurr, general manager of the Consol Energy and Hess Corp. Utica joint venture.
Consol has drilled three wells at two separate pad sites in Mahoning County, and Schurr says it’s still too early to make a determination on the northern potential of the Utica.
“We’re going to understand what those wells can really bring to the table, and if we find that they’re economic, and looking good for revenue generation, then we have acreage positions in these areas,” he says.
Initial results from Consol’s MAHN2 well in Ellsworth Township, Schurr notes, “fit what we were expecting from that area. The question is, what’s the longevity of those reserves?”
Schurr says Consol is “excited” enough about the early performance of these sites to link them into a pipeline network.
“We are still planning to put those into pipelines and flowing them into market,” he says. “So, that’s a good indication we’re not walking away. We want to see what they’ll do.”
Should production of the Mahoning County wells hold up, this northern tier of the Utica play could elicit more investment by Consol, he adds. “We do have more acreage there, and if we see that it supports that, then of course we would be looking for other opportunities.”
Meantime, Consol has shifted much of its attention to the southern portion of the play, dominated by exploration in Noble, Belmont, Harrison, Monroe, Jefferson and Guernsey counties, where wells have turned in stronger than expected results.
“It’s always going to be this constant balance,” Schurr says.
“Is it better to spend our money in Noble, Jefferson, Belmont, or Guernsey? Or it better to spend it in Portage or Mahoning? It comes down to rate of return and what you can generate out of those areas.”
oth scenarios could make a case for the Petersburg site, he says.
First, should the Utica reservoirs in the northeast emerge as productive, the region would require additional processing plants.
Second, producers under contract with Blue Racer that are drilling and finding success in the southern tier of the play could transport natural gas north to the proposed location in Mahoning County via Blue Racer’s strong hydraulics system.
“We’re hopeful sometime in the near future we’ll be able to announce concrete plans to build the Petersburg processing complex,” Breon says.
If built, the plant in Petersburg would have an initial capacity of processing 200 million cubic feet of natural gas per day, Breon reports.
“We’re working very quickly to get final commitments to construct the Petersburg complex,” he says.
Producers such as Consol Energy, Halcon Energy, Hilcorp and BP America are among the major oil and gas exploration companies drilling in the northern section of the Utica shale. In the process, these companies attempt to figure out which techniques work and which do not, while simultaneously assessing the geology of the site.
Often, producers drill and complete the well without any pipeline hookup. However, when the producer tests such a well, it usually ends up “flaring” hydrocarbons to regulate pressure and burning up valuable natural gas in the process.
Blue Racer is helping producers in the Utica to forgo flaring during the testing phase by tying wells into its pipelines, so the producer can sell the methane and liquids gas via a transmission line rather than burn it off.
“If they can be tied to a pipeline, then they’re not wasting the gas and getting full liquid value for everything they’re producing,” Breon says.
The company has what he describes as “uninterruptible interconnects” with Halcon, Consol and other producers in test mode in the northern Utica. “There’s a mixed bag of results, as would be expected in the early stages of formation testing,” he relates.
The Pennant Midstream plant, as well as M3 Midstream’s larger scale complex that recently came online in Kensington, Columbiana County, separates “dry” gas from “wet” gas that is piped from wells in the region. The dry gas – in this case, methane – is transmitted to lines such as Dominion’s. The natural gas liquids are then sent to fractionation plants that separate it into products used to make ethane, propane and butane.
“There’s a reason why NiSource looked at [southeast Mahoning County.] There’s a reason we’re looking at it. There’s a reason Williams has announced looking at something here as well,” Breon says.
Methane gas leftover after liquid hydrocarbons are extracted also needs somewhere to go, and the Petersburg site offers two or three pipeline outlets that producers can tie into. “It gives them options,” he says.
Ultimately, a decision on the Petersburg plant depends on whether Blue Racer can secure enough producer contracts in northeastern Ohio and northwestern Pennsylvania to warrant such a huge investment, Breon says.
“Development in the drilling activity and some of the initial results in the Northeast seem to be a little bit less than what we’ve seen in some other parts of the formation,” Breon observes. “I don’t see Petersburg as being out. It’s just part of the progression of facilities that we believe will ultimately be needed to be built across the 500 miles of pipeline that we have.”
Blue Racer is in discussions with a “number of producers” drilling in this section of the Utica and ascertaining what their long-term and short-term processing needs are, Breon elaborates. More exploratory wells are likely to be drilled this year, while producers under contract with Blue Racer across the play are looking to expand their commitments.
Wednesday, September 18, 2013
YOUNGSTOWN,Ohio -- Options on the land have been secured. A vast network of pipelines that stretches hundreds of miles through Ohio is in place. Energy companies prospecting in the northeastern tier of the Utica shale have started production.
All these basic ingredients mix well in the hamlet of Petersburg, but whether it becomes the center of the region’s next major midstream and processing project may not be known for a year.
“Petersburg strategically is a great location,” says Brent Breon, vice president of business development at Blue Racer Midstream LLC, a partnership between Dominion and Caiman Energy II that is developing a midstream system that stretches from West Virginia through eastern Ohio. “You have access to Tennessee’s pipeline system. You have access to Dominion’s pipeline transmission system,” he says, “and access to Dominion East Ohio.”
Breon and other oil and gas executives spoke with The Business Journal following presentations delivered at the Youngstown Ohio Utica and Natural Gas, or Young, Conference and Expo at the Covelli Centre in Youngstown Sept. 12.
Within the next year, Blue Racer Midstream should know whether a business case exists to construct a new cryogenic processing plant in Petersburg, Breon reports. The general site in southeastern Mahoning County is less than 10 miles from where a $150 million processing plant operated by Pennant Midstream LLC, a joint venture between NiSource Transmission and Hilcorp Energy Co., is under construction in Springfield Township.
ruby discussion is 33 minutes long and majorty is very informative and pertinent to e&p mlps. sec has started review of arp's maintenance reporting as part of semi annual bond review and is perhaps looking for some consistency. suggest you either go to arp website to get to webcast or go to investorvillage mlp board and pick up webcast from my latest revision.
web address on iv mlp board
accidentally posted under family id, sorry, web address on iv mlp board
go to arp website to get to todays webcast
sec review starts around into 14:58 into webcast but worthwhile to listen to whole webcast
ays no disrespect meant but you seem confused. you say you hold a lot of units, then you say frequently something like "NRP is going much lower", then you are asked why you continue to hold and you seen to have no response.
based on their second half 2013 guidance of $235 mm to $245 mm ebitda after postle and they indicated they were on target for that range after 3rd quarter results; which would extrapolate to to $470mm to $490 mm for 2014. However there is usually a weak quarter at beginning of each year, there has been some improvement in ng/ngl prices but more weakness in brent/wti prices since then (and they are not 100% hedged) and a few of their areas have been doing better on volumes, so I would stretch the 2014 ebitda range at this point to $450 mm to $500 mm
MF-Brett Harvey comments "...That's been a big issue for coal miners like Alpha Natural Resources, which generates about 45% of sales from its Eastern coal assets. In fact, the EIA notes that "there are plans to retire the two largest coal-fired power plants in the region, as well as one of the region's nuclear units." So the shift away from coal in the Northeast is only going to accelerate.
This, along with the over 200 other coal plant closures Alpha is expecting across the country, helps explain why CONSOL decided to focus instead on its natural gas assets and export coal operations. Both appear to have better growth prospects right now. The broadly negative view of coal, however, could change quickly if natural gas prices move higher....
...As it stands, Powder River Basin, or PRB, and Illinois Basin, ILB, coal are price competitive with natural gas today. That's been a support for miners like PRB-focused Cloud Peak Energy and ILB centered Alliance Resource Partners . While competitors, including CONSOL and Alpha, have fallen into the red, this pair has remained handily in the black through the coal industry's darkest days. This shows that there remains demand for the fuel even as it has fallen out of favor.
In fact, Alliance has actually been posting record results as utilities switch from Central Appalachian coal to cheaper ILB coal. And while demand for the relatively cheap coal Alliance and Cloud Peak sell has been stable or growing, it could quickly pick up if natural gas prices stay at recent levels or head higher.
Not so crazy
Although it would take a sustained natural gas price increase for Alpha to really benefit, it wouldn't require much to bolster results at Alliance or Cloud Peak. And the problems the Northeast power system has faced in acquiring natural gas in recent years shows that a coal rebound isn't such a far fetched idea...."
forgot to mention this came from a motley fool write up on mwe today
...It recognizes its existing and future obstacles and opportunities and then implements effective solutions. MarkWest is positioning itself for the long haul....
nosweat good bet, my guess would also be oily so may also stay around Permian, but also many good "cheap" gas assets for sale
first line starts at cadiz-will have to see iv mlp board to get site link
"...The pipeline route would link two gas-processing facilities owned by MarkWest Energy Partners LP at Cadiz (185 MMcf/d cryogenic plant today – expanding to 385 MMcf/d in 3Q 2014) and M3 Midstream LLC (Momentum) at Leesville (200 MMcf/d cryogenic plant) and a fractionator at Scio also owned by M3 (90 Mb/d output)...."
all bleeding may not be from incident but lack of info is not helpful
Chrx very cool as always. Amazing amount of effort that goes in to building plants in hilly terrain. Can you differentiate for me Majorsville vs Liberty. Not sure what the difference is. Also what is the name of the river running along the property?