Thursday, April 18, 2019

Permitting Up, Rig Count Consistent in Utica Shale Last Week




New permits issued last week: 13 (Previous week: 8)  +5
Total horizontal permits issued: 3059 (Previous week: 3046 +13
Total horizontal wells drilled: 2571 (Previous week: 2568)  +3
Total horizontal wells producing: 2179 (Previous week: 2179)  +-0
Utica rig count: 16 (Previous week: 16)  +-0

Progress Slowly Continues Towards Construction of Belmont County Cracker Plant

From NGI:
PTT Global Chemical pcl (PTTGC) and Daelim Industrial Co. continue to work towards sanctioning the multi-billion dollar ethane cracker proposed for Southeast Ohio, a project spokesman said this week.

A final investment decision (FID) has been in the offing since 2015, when PTTGC committed $ 100 million for preliminary design work on the facility and initially expected to have a decision by 2017. The timeline was later pushed back to 2018 and passed. decision is imminent, pieces continue to fall into place that suggest the plant will ultimately get built, sources said.

Project spokesman Dan Williamson said PTTGC is currently focused on selecting an engineering, procurement and construction (EPC) firm to build the massive facility. The recently contracted with a local business to remove trees from the proposed site. major regulatory approvals, having secured its air permit late last year from the Ohio Environmental Protection Agency.
Click here to read more (subscription required).

Tuesday, April 9, 2019

Permitting Picks Back Up a Bit in the Utica Shale



New permits issued last week: 8 (Previous week: 0)  +8
Total horizontal permits issued: 3046 (Previous week: 3042 +4
Total horizontal wells drilled: 2568 (Previous week: 2559)  +9
Total horizontal wells producing: 2179 (Previous week: 2167)  +12
Utica rig count: 16 (Previous week: 16)  +-0

Division of Oil and Gas Resources Chief Predicts Utica Drilling Consistency

From the Akron Beacon Journal:
Oil and gas companies have drilled more than 2,500 horizontal shale wells in Ohio, causing the state’s oil and natural gas production to surge. 
Drillers came to Ohio planning to explore the Utica and Marcellus shales beneath the eastern half of the state, but most horizontal drilling — sometimes called fracking — has concentrated in the Utica Shale deposits in counties near the Ohio River. 
In the early days of shale drilling, the average well was 6,000 feet deep and 4,000 feet long. Now, the average well is being drilled 8,500 to 10,000 feet deep and 12,000 feet long; some wells are as long as 20,000 feet, Simmers said. 
Last year, 358 new horizontal shale wells were drilled, according to the Division of Oil and Gas, which is part of the Department of Natural Resources. 
“These numbers, we project, are going to be pretty consistent for the next two years,” Simmers said.
Read on by clicking here. 

BlackGold Closes Royalty Investment in the Utica Shale

HOUSTON--(BUSINESS WIRE)--BlackGold Capital Management LP (“BlackGold”), a private credit investment firm focused on the energy industry, today announced the acquisition of a portfolio of Overriding Royalty Interests (ORRI) in the Utica shale of Ohio. The acquisition was completed in conjunction with co-investors.

The ORRI will provide investors a portion of the revenue from natural gas production. BlackGold has also partnered with an established management team with a track record of investing in ORRIs.

“The energy sector is in a multi-year transition and the industry remains under stress,” said Adam Flikerski, co-founder of BlackGold. “We believe there is strong demand for us to fill a gap left by banks and provide capital to middle market energy companies, as evidenced by our robust pipeline of funding opportunities.”

Erik Dybesland, co-founder of BlackGold added, “Given the demand for capital in the energy industry and traditional sources curtailed, we believe that our platform provides the skills necessary to source opportunities, provide creative solutions for companies, and deliver solid outcomes for our institutional partners.”

BlackGold Capital Management, founded in 2006, has invested over $7.5 billion in both public and private energy companies, across upstream, midstream, and oil field services.

About BlackGold
BlackGold Capital Management LP is a leading investment firm focused on opportunistic catalyst-driven investments in the energy industry. The firm’s team has decades of experience and expertise in energy with extensive long-standing industry relationships. Founded in 2006, BlackGold seeks to generate compelling returns for its investors by employing a deep fundamental research-driven approach in analyzing energy assets and capital structures. The firm manages approximately $1 billion in capital across its investment platform which includes public and private commingled strategies as well as managed accounts. KKR & Co. LP, a global investment firm that manages investments across multiple asset classes, holds a 24.9% passive minority interest in BlackGold Capital Management LP. For more information, please visit www.BlackGoldCap.com.

Rover Pipeline Tax Revenue Having Positive Impact in Ohio

From the Sentinel-Tribune:
The Rover Pipeline paid more than $4 million to Wood County in annual property taxes for 2018, with more than $69 million paid across the state, according to a press release issued by the company. 
Across the full four-state project, the pipeline paid nearly $73 million in annual property taxes, and is expected to pay more than $180 million across the entire route in property taxes for 2019. This takes into account the full operations of the pipeline going service in the last quarter of 2018.

The property taxes generated by the pipeline are paid to the local taxing authorities, which are then responsible for distributing the money based on the individual taxing guidelines set forth by each taxing jurisdiction, or county.
That article also notes:
Additionally, Rover has donated more than $375,000 to a variety of local non-profits and emergency management associations along the route, which includes the Ann Arbor YMCA, the Mountaineer Food Bank and the Ohio 4H Youth.
Read the whole article by clicking here.

And from Richland Source:
The Shelby City Schools District is attempting one last Hail Mary to build a new Pre-K through eighth grade building in the district. 
After failing three times in 12 months to pass a bond issue in the district to fund a new facility, Shelby City Schools has one last option to build a new building without needing any additional taxpayer money. 
The Ohio Facilities Construction Commission (OFCC) is still considering funding half of a new building in Shelby if the district can come up with their half - which could be possible thanks to the Rover Pipeline.
Click here to read the rest of this article.

ODNR Posts April 2019 Shale Activity Maps





Tuesday, April 2, 2019

Permitting Grinds to a Halt in Utica Shale



New permits issued last week: 0 (Previous week: 5)  -5
Total horizontal permits issued: 3042 (Previous week: 3042 +-0
Total horizontal wells drilled: 2559 (Previous week: 2554)  +5
Total horizontal wells producing: 2167 (Previous week: 2167)  +-0
Utica rig count: 16 (Previous week: 15)  +1