natural gas prices

A recently released study by the FrackTracker Alliance shows that water use and wastewater generated from horizontal hydraulic fracturing (fracking) has dramatically increased in the Appalachian Basin since 2010, leading to a corresponding increase in the use of Class II underground injection wells, especially in Ohio.

Occidental Petroleum Corp. (Oxy), which is preparing to spin off California operations and relocate worldwide headquarters to Houston, has appointed Todd A. Stevens, 47, as president and CEO for California Resources Corp. (CRC). William E. Albrecht, 62, was named executive chairman for the independent producer, which plans to focus exclusively on California exploration. Stevens is a 19-year veteran of Oxy, having served as vice president of corporate development since August 2012. Albrecht, who has been responsible for Oxy’s oil and gas operations in North and South America, has been president of the Oil and Gas-Americas unit since 2011. Oxy filed spin-off plans with the Securities and Exchange Commission in June (see Daily GPI,June 6). Once completed, CRC would hold 2.3 million net acres, 8,655 producing wells and about 15,185 additional net drilling sites in California.

With temperatures forecast to move little from seasonal norms, purchases for weekend and Monday volumes seemed to have little appeal in Friday’s trading.

Talisman Energy Inc. and Statoil ASA have apparently abandoned a plan to sell their Eagle Ford Shale joint venture after failing to secure an acceptable bid for the asset, Bloomberg reported, citing unnamed sources. A little more than a year ago press reports said Talisman was shopping its Eagle Ford Acreage and hoping to raise up to $2 billion from a sale (see Shale Daily,June 20, 2013). The company would not comment.

Losses ruled for both physical and financial natural gas markets, with the NGI Weekly National Spot Gas Average falling 22 cents to $4.01 for the week ended July 11. All actively traded points posted losses, with the norm being a decline from 10 cents to a touch above 20 cents.

Spot gas for Friday delivery continued to sink in Thursday trading on double-digit declines in the Northeast and Eastern points along with a weak screen that set, in the words of one trader, “no rallying power at all.”

Gulfport Energy Corp. has hired Aaron Gaydosik to serve as its chief financial officer. Gaydosik fills a position vacated by Michael G. Moore, who was appointed CEO in April (see Shale Daily,April 24). Most recently, Gaydosik served as vice president of finance at Kodiak Oil & Gas Corp. Prior to that, he worked in the investment banking industry, including time in energy-related positions with Credit Suisse and Wachovia Securities. He holds a bachelor’s degree in finance from Southern Methodist University and a master’s degree in business administration from the University of Chicago.

Penn Virginia Corp. (PVA) is acquiring 11,660 net acres in the Eagle Ford Shale, which would give it about 101,800 net acres total with more than 1,600 drilling locations. The Radnor, PA-based operator agreed to $45 million for property in Lavaca County, TX from an undisclosed seller. The transaction, set to close by the end of August, includes $35 million to be paid at closing and $11 million paid over time as a drilling carry. The acreage is adjacent to PVA’s Shiner development and is estimated to contain around 150 gross potential drilling locations. In 1Q2014, PVA set a quarterly oil production record on a 15% increase in output from the Eagle Ford (see Shale Daily,May 14).

Natural gas futures continued lower following the release of government storage figures that were somewhat on the high side of what the market was expecting.