Penn Virginia Corp. (PVA) has agreed to sell its Mississippi assets to an undisclosed buyer for gross cash proceeds of $72.7 million. The sale is expected to close in July, subject to customary conditions. The effective date of the sale is April 1, 2014. The properties, which target the Selma Chalk with horizontal wells, had net production of about 11.9 MMcfe/d during the first quarter, almost 100% of which was natural gas. As a result of the divestiture, the company’s 2014 production will decrease by about 1.9 Bcfe. Estimated proved reserves associated with the divested properties at year-end were 85.3 Bcfe, 69% of which was proved developed and about 100% of which was natural gas. During the first quarter, PVA set a quarterly oil production record, thanks to a 15% increase in output from its Eagle Ford Shale operations as it continued to grow and delineate its South Texas acreage (see Shale Daily,May 14).
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Cash Leads Futures Higher In Weather-Driven Trading
Spot natural gas prices were able to post double-digit gains in Monday’s trading as near-term temperature forecasts called for above-normal temperatures and cast doubt about continuing hefty additions to storage.
Enviros: Industry Executives Could Be Liable for Opposing Climate Change Mitigation
In a letter sent to the CEOs of 32 global energy companies and 44 insurance firms that provide risk management services to them, a group of nongovernmental organizations (NGO) warned each executive that he or she may be subject to personal liability risks in the future if their organizations oppose efforts to rein in climate change.
Pipeline Leak Detection Must Step Up, Report Says
A new “norm” in natural gas pipeline safety programs needs to be a proactive, sustainable approach to leak detection, said PricewaterhouseCoopers LLP (PwC). It calls for a “cultural transformation” in pipeline operators.
Latest Goodrich TMS Well Continues Winning Streak
Goodrich Petroleum Corp. has turned in additional encouraging well results from the Tuscaloosa Marine Shale (TMS). Analysts following the TMS progress of Goodrich and others said Monday they are encouraged but still more needs to be learned.
EPA Proposal Would Slash Power Plant Carbon Emissions 30% by 2030
The Obama administration on Monday issued proposed new rules to cut carbon emissions from the power generation sector 30% below 2005 levels by 2030, a move cautiously embraced by the natural gas industry, characterized as a “coal killer” by some critics, and hailed by environmental groups as a major effort to address climate change.
Corpus Christi LNG Terminal Signs Another Spanish Offtaker
Cheniere Energy Inc.’s Corpus Christi Liquefaction LLC has signed up its second foundation customer for the second train of its liquefied natural gas (LNG) export terminal being developed near Corpus Christi, TX.
Bidweek Traders Mulling Power Usage, Maintenance; June Quotes Tumble
With futures prices stuck in a range, and weather forecasts uninspiring, bidweek traders didn’t have a lot to go on to make their June trades. Utilities, as always, were making sure their bidweek purchases aligned with their need to refill storage, but marketers needing to ensure their customers get the lowest cost gas possible were faced with a different set of challenges. Nationally theNGIBidweek Average Price for June fell 36 cents from May to $4.12. Most individual pointslost about 20 cents and only a few locations made it into positive territory. The Northeast saw the greatest swings, and of the actively traded points June bidweek at the Algonquin Citygates jumped 98 cents to average $5.58 and Tennessee Zone 4 Marcellus dropped $1.01 to average $2.41. All regions declined.
Gas in Water Wells Not From Barnett, RRC Says, Again
Another investigation by the Railroad Commission of Texas (RRC) has concluded that the evidence does not support allegations that Barnett Shale drilling and hydraulic fracturing activities contaminated a number of water wells with methane in the area of Range Resources Corp. gas wells.
Industry Brief
MarkWest Energy Partners LP said Friday that its Houston Processing and Fractionation facility in southwest Pennsylvania was still shut down and will remain so until further notice. Severe thunderstorms that rolled through much of the region on Wednesday led to a lightning strike at one of the complex’s three processing plants (see Shale Daily,May 29). The company said it will likely notify investors and the news media when the plant is brought back online. A company spokesman said damage at the plant was still being assessed and repairs were being made. The 355 MMcf/d facility primarily serves Range Resources Corp., which said Thursday that some of its wells were shut in as a result of the problems at the Houston plant. Some production is being rerouted to MarkWest’s Majorsville complex in Marshall County, WV, about 30 miles southwest of the Houston facility in Chartiers Township in Washington County.
