Spectra, Rice, Carrizo Report Third Quarter Results

Third quarter results continue to be announced by companies active in the Utica shale.  The tough times for the oil and gas industry are evident, although production figures remain solid.

First, here is some of what The Intelligencer/Wheeling News-Register had to say about the struggle facing drillers:
In a depressed price environment due in part to a lack of pipeline infrastructure, Consol Energy lost an average of 28 cents for every unit of Marcellus and Utica shale natural gas, oil, liquids and condensate it sold from July through September. 
Consol is not the only company coping with lower commodity prices, as EQT Corp. saw its third quarter profit drop from $98.6 million in 2014 to $40.8 million this year, despite increasing its production levels by 27 percent from the previous year. The decline corresponds with a New York Mercantile Exchange natural gas price that is nearly $2 less per unit than at the same time last year. 
Even global oil giant Chevron, which maintains active operations in Marshall County, is not immune to the struggles. The firm realized a loss of $603 million from drilling in the U.S. from July 1 to Sept. 30, compared to earnings of $929 million from the same time in 2014.
Read more of that article by clicking here.

Now, here are some of the results announced by other companies.

First, Rice Energy:
Utica Shale 
Utica net production averaged 199 MMcfe/d for the quarter, a 58% increase from the prior quarter and a 1,227% increase over third quarter 2014. Through September 30, 2015, we have turned to sales 14 gross (10 net) operated Utica wells, which encompasses our entire planned online activity for the year. As of September 30, 2015, our Ohio Utica leasehold position consisted of approximately 56,000 net acres, primarily in Belmont County. 
In late August 2015, we turned to sales our first operated Pennsylvania Utica well, John Briggs 50U, approximately three months ahead of schedule. Located in western Greene County, the 5,800 foot lateral was completed with a 41-stage frac. After a 60 day test period, the well is currently producing under our designed restricted choke rate of 12 MMcf/d with 8,000 psi of flowing casing pressure and favorable pressure declines. We are highly encouraged by the long-term production potential of the Pennsylvania Utica demonstrated by our initial results.
Read the whole press release by clicking here. 

Next, from Spectra Energy:
The Uniontown to Gas City project began delivering gas to the Midwest on August 1 and was fully in service September 1, two months ahead of schedule. The brownfield portion of OPEN also achieved an early startup, coming online about six weeks ahead of schedule. The remaining portion of the OPEN project will be placed into service in November, bringing incremental Marcellus and Utica supply to southern markets.

Construction is under way on the AIM project in New England, which is on track to be in service in the second half of 2016. The Express Enhancement crude oil project also began construction this quarter and is on track, with an estimated 2016 in-service date. 
The FERC application for PennEast was filed in September, and the applications for four other projects, Atlantic Bridge, Access South,Adair Southwest, and the Lebanon Extension, were filed in October. These projects are all on schedule for their respective in-service dates. 
The NEXUS project, in development with DTE and supported by local distribution companies and Marcellus and Utica producers, will allow customers to move gas through Ohio and Michigan markets to the 150 Bcf Dawn Hub. The Dawn Hub is owned and operated by the company's subsidiary, Union Gas, and is the second largest physically traded gas hub in North America. The company has also recently signed a number of interconnect agreements with industrial facilities and power generators, demonstrating additional support for the route and the project. Major contractors for the project have been selected, and NEXUS will file a formal FERC application this month.
Click here to read Spectra's whole release. 

And here is some of what Carrizo Oil and Gas had to say:
In the Utica Shale, Carrizo did not drill or complete any operated wells during the third quarter and does not currently plan to have any operated drilling or completion activity in the fourth quarter. Oil and condensate production during the quarter was almost 800 Bbls/d, an increase of more than 20% from the second quarter as the two-well Wagler pad was online for the entire quarter. Carrizo continues to be pleased with the performance of the Wagler wells. The wells have been online for more than 170 days and the condensate/gas ratio has remained strong at approximately 225 Bbl/MMcf, exceeding expectations. This has led to the performance of these wells exceeding the Company's condensate type curve by approximately 15% to date. Carrizo operates the Wagler wells with an approximate 83% working interest.
Check out the entire release by clicking here. 

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