Shale

Companies that missed out on the first round of leasing in the Eagle Ford Shale in South Texas that began in 2008 will have another chance as some of those leases will be expiring in the coming months, an industry analyst said recently.

Companies that missed out on the first round of leasing in the Eagle Ford Shale in South Texas that began in 2008 will have another chance as some of those leases will be expiring in the coming months, an industry analyst said recently.

Noting that while there are “important questions” about the environment, it has been reported that the Marcellus Shale could provide enough gas to meet U.S. demand for decades, while creating thousands of jobs, and most important can be developed responsibly, according to John Felmy, chief economist with the American Petroleum Institute (API).

Noting that while there are “important questions” about the environment, it has been reported that the Marcellus Shale could provide enough gas to meet U.S. demand for decades, while creating thousands of jobs, and most important can be developed responsibly, according to John Felmy, chief economist with the American Petroleum Institute (API).

A Barnett Shale landowner is suing units of Chesapeake Energy Corp. alleging underpayment of royalties via a scheme involving gas sales to an affiliate at less than full value. The lawsuit seeks class action status.

EQT Corp. has reported double-digit initial production (IP) results for two of its newest natural gas wells in the Pennsylvania portion of the Marcellus Shale. The Cooper 590384 well in Greene County, PA, completed in late July, had an average IP rate of 22 MMcfe/d over 30 days. The well has a total lateral length of 9,000 feet, with 8,411 feet of stimulated pay, and was completed with a 28-stage fracture. The direct well cost was about $7.1 million, with a preliminary estimated ultimate recovery of 18 Bcf, according to EQT. The Rosborough 590259 well in Armstrong County, PA, had a 24-hour IP of 15 MMcfe from 4,060 feet of stimulated pay. EQT holds a 100% working interest and an 87.5% net revenue interest in both wells.

Rex Energy Corp. said it completed its Marcellus Shale joint venture (JV) transaction with Summit Discovery Resources II LLC, a subsidiary of Sumitomo Corp. (see Daily GPI, Sept. 1). After final adjustments, Sumitomo paid Rex about $99.5 million in cash for close to 13,000 net acres, a partial interest in some producing wells and associated midstream assets. the cash payment included a $7.5 million reimbursement for drilling-related expenses incurred to date, which was applied against the drilling carry. At closing Sumitomo’s remaining drilling carry balance was about $51.2 million, which will be used to cover 80% of Rex’s costs to drill and complete additional wells within the areas of mutual interest identified in the JV agreement.

EQT Corp. on Wednesday reported double-digit initial production (IP) results for two of its newest natural gas wells in the Pennsylvania portion of the Marcellus Shale.

Long-term growth in shale production already is reshaping the North American markets and reconfiguring the world’s natural gas markets, a report by Ernst & Young asserts.