First Choice Energy

Friday, November 8, 2019

Gulfport Energy Looking to Sell Some Utica Assets

From the Times Reporter:
Gulfport Energy is looking to sell some of its interests in the Utica Shale. 
The company announced the plan ahead of its Friday conference call with investors to discuss third-quarter earnings. 
Gulfport said proceeds from its sale of non-operated interests would offset higher-than-anticipated spending this year in the Utica. The company expected to have an agreement on the sale before the end of the year, according to a press release.

Oklahoma City-based Gulfport lost $48.8 million, or 31 cents per diluted share during the quarter. 
The company’s average production was equivalent to 1.5 billion cubic feet of natural gas per day. Utica wells accounted for 80 percent of production.
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EQT Looking to Sell Off its Ohio Assets

From the Pittsburgh Post-Gazette:
One of Mr. Rice’s signature promises during the proxy battle was to bring EQT’s costs down to $735 per foot. For an average well being drilled next year in southwestern Pennsylvania, at 13,000 feet long, that would translate to $9,555,000. He said EQT will be below that level by the second half of next year in this area. Its West Virginia and Ohio programs have higher cost and shorter laterals. 
But while company leaders told analysts on Thursday that “West Virginia will become a larger part of EQT’s story going forward,” the Ohio assets that Mr. Rice personally negotiated at a critical point in his former firm Rice Energy’s trajectory may be headed for a sale. 
To pay off debt, EQT is also considering selling off holdings in central Pennsylvania and southern West Virginia. 
It is also looking at selling a stake in its mineral interests, as has become more common in the industry with players like Range Resources. A deal on royalty interests could come in “a matter of months,” EQT’s leaders said and might involve a cut of current and/or future production.
Read the whole article by clicking here. 

Murray Energy Corp. Files for Bankruptcy

From the Pittsburgh Business Times:
Murray Energy, the nation’s largest privately owned coal mining company — which owns facilities in West Virginia and Ohio — filed for Chapter 11 bankruptcy protection Tuesday. 
Murray Energy, which is based in St. Clairsville, Ohio, reported between $1 billion and $10 billion in estimated liabilities and assets between $1 billion and $10 billion in the filing in the U.S. Bankruptcy Court for Southern Ohio. Its top 10 unsecured creditors have $126.9 million in claims, according to the bankruptcy filing. 
Murray Energy founder Robert Murray, one of the strongest voices in the coal industry, will move from CEO to chairman. Robert D. Moore has been named president and CEO of Murray Energy and Murray Energy Corp.
Click here to read more. 

Tuesday, November 5, 2019

GOP Effort to Block Nationwide Fracking Ban Gets Stopped by House Democrats

From the Washington Times:
House Democrats blocked Tuesday consideration of a resolution in support of hydraulic fracturing as Republicans sought to protect the U.S. energy boom from Democratic presidential candidates seeking to ban fracking nationwide 
The resolution, sponsored by Rep. Rob Bishop, Utah Republican, affirmed that states should “maintain primacy for the regulation of hydraulic fracturing for oil and natural gas production on State and private lands,” and that no president should impose a moratorium without congressional approval. 
“In recent weeks, many of the Democratic candidates for president have pledged to ban hydraulic fracturing in the United States, a campaign promise straight out of the keep-it-in-the-ground playbook,” said Rep. Debbie Lesko, Arizona Republican, in a floor speech. 
Sens. Kamala Harris, Bernard Sanders and Elizabeth Warren, all 2020 Democratic presidential hopfeuls, have called for a nationwide ban on fracking, an extraction process used in the vast majority of U.S. natural gas production.
Read the whole article by clicking right here. 

Analysts Try to Quantify Effects of Fracking Ban Promised by Democratic Presidential Candidates

From Forbes:
A number of Democratic candidates have endorsed a fracking ban, recently including Elizabeth Warren, and as Bob McNally said, this would “vaporize the oil and gas boom in the United States.” In this piece, I will try to quantify the impact of a fracking ban on the U.S. natural gas supply, and the concomitant economic effects. 
Of course, there is some skepticism that she would actually do that if elected, and suspicion that the suggestion is nothing more than an attempt to appeal to the more liberal Democratic primary voters. Given that Democrats from Barack Obama to Jerry Brown have not opposed (regulated) fracking, and the pertinent fact that politicians often make promises they don’t intend to keep, (shocking I know), I would lean towards that myself. 
My belief is strengthened by the nature of the arguments in favor of a fracking ban. Yes, it’s done by big oil (I mean BIG OIL), except many of the companies are much smaller. Yes, it’s a novel method, except it’s been done for about a century in various forms. And yes, there is evidence of pollutants like benzene near fracking sites, but mainly because there’s benzene nearly everywhere. One would like to think that the public would recognize that argument resembles fears of radiation from nuclear power plants—which are trivial when compared to natural radiation levels.
Click here to read the rest of the article. 

AEP Sells Thousands of Acres to Ohio, Retains Subsurface Rights

From The Columbus Dispatch:
Thousands of acres of land the state of Ohio has agreed to purchase from American Electric Power for recreation and conservation does not include the subsurface rights. AEP is holding onto those rights for potential future drilling for oil and natural gas. 
The state’s planned $47 million purchase of more than 31,000 acres of land in eastern Ohio for recreation and conservation does not include the subsurface rights, and some of it likely will be the site of fracking activities, The Dispatch has learned. 
Ohio Gov. Mike DeWine — flanked by outdoorsmen and members of the General Assembly — announced the land purchase in eastern Ohio from American Electric Power a few weeks ago. The move was applauded by conservationists because the land, formerly used by the utility for strip mining, would be used by the Ohio Department of Natural Resources for recreation and conservation and designated as a state park. 
However, a draft of the purchase agreement obtained by The Dispatch shows AEP will retain the subsurface rights to the land for potential oil and gas drilling. 
The draft states that AEP retains the “right to construct, install, and maintain well site locations, access roads, production equipment, pipeline systems, and utilities and to conduct seismic and geological surveys and the right to drill and extract from new water wells and reasonable use of non-domestic surface water for such purposes.”
You can continue this article by clicking here. 

President Trump Praises Shale Drilling During PA Rally

From Kallanish Energy:
President Trump Wednesday celebrated a love-in in the Appalachian Basin. 
The president delivered a 64-minute salute to shale drilling and the U.S. energy industry at the 9th annual Shale Insight conference in Pittsburgh. Kallanish Energy was in attendance. 
“You are the No. 1 producer of oil and natural gas on the planet Earth, No. 1 by far,” he said. “America is a winner, a winner, a winner, a winner. We’re not being laughed at anymore.” 
Shale drilling has reshaped the American economy and Americans are benefitting from lower heating bills and more jobs, Trump said. 
‘I like energy people’ 
“I like energy people,” he said. He addressed an audience of roughly 5,200 persons at the David Lawrence Convention Center, including nearly 1,480 conference attendees and those involved in staging the conference. 
The conference was staged by the Marcellus Shale Coalition, the Ohio Oil and Gas Association and the West Virginia Oil and Natural Gas Association.
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November 2019 Well Activity Maps Posted by ODNR