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Houston CEO: ‘There’s not a better growth story’ in U.S. for gas than Marcellus and Utica shale plays

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Houston-based Magnum Hunter Resources Corp. (NYSE: MHR) thinks it could soon take the throne as owner of the most productive well in the Utica shale play. Magnum Hunter’s well is only the second in the Utica shale in West Virginia (Chevron Corp. (NYSE: CVX) drilled the first in Marshall County earlier this year). It’s located on the Steward-Winland pad in Tyler County, just east of Marietta. “We think this well is on the equivalent of (Rice Energy Inc.’s Bigfoot 9H) well,” Gary Evans, Magnum Hunter’s CEO, told CNBC host Jim Cramer June 2. “We’ll be fracking that well over the next 30 to 45 days.”

Evans shared more news, telling Cramer that the company expects to sell off $100 million in noncore assets later this month and another $100 million later this year, bringing its total noncore sales to $300 million this year. It sold $500 million last year and sold its Canada holdings for .5 million in April. Magnum Hunter is focusing on the Marcellus and Utica shale plays more than North Dakota because its Eureka Hunter subsidiary has pipeline there to easily move its product. It doesn’t in North Dakota.

Read more: http://www.bizjournals.com/houston/morning_call/2014/06/houston-ceo-there-s-not-a-better-growth-story-in-u.html?utm_source=feedburner&utm_medium=feed&utm_campaign=Feed:+industry_5+%28Industry+Energy+&+the+Environment%29

 
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New Bakken crude testing facility opens in Williston

IBy Emily Aasand

Inspectorate, a core part of Bureau Veritas Commodities Division, has opened a new analytical testing facility in Williston, N.D., which specializes in the analysis of crude oil and gas production from the Bakken shale play in North Dakota.

Bureau Veritas also provides meter verification services for Williston and the surrounding areas. Meter verification ensures that both the government and the land owner are getting accurate representation of what is being pulled out of the ground, and that royalty payments are accurate.

“For my group, we provide gas testing in Williston, N.D., to ensure either compliance with regulations or compliance with the new department of transportation regulation,” said Neil Chapman, Operations Director for Bureau Veritas’ Commodities Division. “We are heavily involved in making sure the fuel is tested correctly to ensure the correct packaging group is applied for that oil movement.”

The recent focus on Bakken crude has put this testing facility in even higher demand. Companies want to know what the composition of the oil is in order to place an appropriate value on it, according to Chapman.

“We’re there as an independent third party to verify the quantity and the quality of the oil that is sold between operating parties,” Chapman said.

Read more:

http://thebakken.com/articles/664/new-bakken-crude-testing-facility-opens-in-williston

 

 
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Shale impact fee revenue rose in 2013, state reports

MoneyBy Stephanie Ritenbaugh

Shale drilling generated more than $225 million last year in impact fees that will go to counties and municipalities that bear the brunt of drilling activity, an 11 percent increase over 2012. Rising natural gas prices were the primary factor in pushing up fee revenue between 2012 and 2013, according to the Pennsylvania Public Utility Commission.The price of natural gas helps determine how much drilling companies will pay, said Jennifer Kocher, spokeswoman for the PUC. The average price of natural gas last year was $3.65 per thousand cubic feet, up from $2.78 in 2012.

Producers drilled 1,187 new wells in 2013, Ms. Kocher noted. Each horizontal well — about 1,129 last year — requires a $50,000 payment. There were about 58 vertical wells drilled, with a smaller $10,000 fee. The impact fee for older wells is on a sliding scale.

Read more: http://powersource.post-gazette.com/powersource/policy-powersource/2014/06/05/Shale-impact-fee-revenue-rose-in-2013-state-reports/stories/201406040194

 

 
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Why Zelienople’s Deep Well Services is sticking to its Appalachian roots

Deep well zeli logo1By Madasyn Czebiniak

The natural gas boom brought with it a boom of sorts in out-of-state license plates as operators tapped into the expertise of employees from energy hubs such as Texas, Oklahoma and Louisiana.  Zelienople oil well company Deep Well Services is changing that. One of the things the company prides itself on is its local affiliation. Sixty percent of its 91 employees are from Appalachia — meaning Pennsylvania or West Virginia. “We’re locally based. A lot of people — companies — operate out of here, but they’re from other parts of the country or the world,” Deep Well’s President Mark Marmo said.”That’s a key point for us,“ added John Sabo, the company’s chief operating officer.

And the company is on the hunt for more workers as its jobs and profits expand. The company anticipates a profit increase of 258 percent for the 2014 fiscal year and total revenue of approximately $25 million, Mr. Marmo said. The private company’s revenue grew from $7.2 million in 2012 to $14.2 million last year.

Read more: http://powersource.post-gazette.com/powersource/companies-powersource/2014/06/03/The-opportunity-to-grow-Deep-Well-Services-sticks-to-its-Appalachian-roots/stories/201406030004

Employment Opportunity:

Deep Well Services are currently seeking experienced Rig Hands, Derrickmen, Snubbing Lead Hands, Operators and Supervisors. If interested, please apply by submitting an employment application located on our   Contact Us page or click the link below to download application directly.

http://deepwellservices.com/wp-content/uploads/2014/06/Deepwell-Application.pdf

 

 

 
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Boom offers economic growth, opportunities in La.

Louisiana-300x171BY TED GRIGGS and TIMOTHY BOONE

Methanex’s decision to relocate two methanol plants from Chile to Geismar demonstrates the advantages driving the industrial boom in south Louisiana: easy access to the Mississippi River, natural gas and large plots of land, as well as a major limitation, transportation, said Jessica Kemp, vice president of policy and advocacy at the Center for Planning Excellence.

“If you drive down River Road, you’ll see a dozen similar sites and you’ll notice they all have these great big parking lots for these thousands of workers,” Kemp told attendees at the Connect Boom Without Bust Policy Forum. “You’ll also notice there’s only one way in and one way out.”

About 100 people were on hand for the opening session.

The challenge for the state and southeast Louisiana in particular will be figuring out the best way to accommodate the coming industrial, business and residential growth and the resulting traffic, Kemp said. The goal is to create sustainable growth and avoid the bust that often follows a boom.

The most conservative estimates show $60 billion in major project investment in the state, with $21 billion in the Baton Rouge-to-New Orleans corridor. “We don’t see a lot of what’s coming yet, but right now, it’s like a big cannonball moving through a python,” said Dan Borne, president of the Louisiana Chemical Association.

Read more: http://theadvocate.com/home/9306150-125/boom-offers-economic-growth-opportunities

 
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