Monday, July 30, 2012

U.S. Chamber of Commerce Expresses Optimism Over Ohio's Utica Shale Prospects

From Shale Daily:
The Columbiana County Recorder's Office has been packed with oil and gas company representatives searching out property deeds and mineral rights for months, and the county has issued 55 drilling permits, according to Youngstown's WFMJ-TV.
 
The Columbiana County Port Authority (CCPA) recently approved a memorandum of understanding to sell a portion of an industrial park in Wellsville, OH, to Marathon Petroleum Corp., which plans to use the property as a staging area for trucks transporting oil and gas collected from area shale wells, according to East Liverpool, OH's Review. The acreage is adjacent to a Marathon storage facility. The CCPA also agreed to lease acreage at the industrial park to Arrowhead Utica Pipelines, which plans to build a transfer facility on the site, the Review reported.
 
Last month the county's Board of Commissioners approved a three-year gas and oil lease agreement with DPS Penn for 548 acres at $5,850/acre (see Shale Daily, June 25). The $3.2 million deal came less than a year after the commissioners voted to a approve a letter of intent to sign a lease proposed by DPS that would have fetched $2,700/acre; however, that lease was never signed.
 
In September Rex Energy Corp. said it had acquired the rights to lease about 11,000 net acres in neighboring Carroll County for about $3,600 per acre, plus 20% royalties with no deductions (see Shale Daily, Sept. 12, 2011). The village council of Carrollton, the county seat of Carroll County, this week voted in favor of a nondevelopmental oil and natural gas lease agreement with Rex that was valued at $938,000 (see related story). Chesapeake last year paid a reported $2,250 per acre plus 17.5% in royalties for about 75,000 acres in eight Ohio counties (see Shale Daily, May 11, 2011).
 
Chesapeake Energy Corp., M3 Midstream LLC and EV Energy Partners LP are developing what they claim will be the largest integrated midstream service complex in eastern Ohio to serve Utica Shale production in Columbiana County (see Shale Daily, March 16). Engineering and procurement has begun for the project, with the first cryogenic processing and fractionation plants scheduled to be in service by the second quarter of 2013, according to Chesapeake.
Read the rest of the article here.

Connect with us on Facebook and Twitter!

No comments:

Post a Comment