Shale

FERC Friday issued a favorable final environmental review of the the proposed Midcontinent Express Pipeline (MEP), which would give shale producers in Texas, Arkansas and Oklahoma access to eastern markets.

Ozark Gas Transmission LLC, an affiliate of Tulsa, OK-based Atlas Pipeline Mid-Continent LLC, is proposing to build a new pipeline to transport natural gas from the developing Fayetteville Shale area in Arkansas.

The Bureau of Land Management (BLM) has opened for comment a plan by a subsidiary of Devon Energy Corp. to conduct seismic testing on the Baxter Shale in a remote area of Wyoming — a controversial project that the state’s governor has tried to stop.

The Bureau of Land Management (BLM) has opened for comment a plan by a subsidiary of Devon Energy Corp. to do some 3-D seismic testing on the Baxter Shale, which is located in a remote area of Wyoming — a controversial project that the state’s governor has tried to stop.

Fort Worth, TX-based Range Resources Inc. has expanded its Barnett Shale holdings in sales agreements with a subsidiary of DTE Energy Co. and a private company for a total of $305 million. DTE earlier this month said it would sell some of its Barnett stake to an undisclosed buyer (see NGI, Dec. 10). The newly acquired properties are located in the Texas counties of Tarrant, Denton, Johnson, Ellis, Parker and Hill. Current production is 14 MMcfe/d, which is expected to increase to 18 MMcfe/d early next year when several newly drilled wells are placed in production, Range said. The company said the properties to be acquired now have 51 producing wells, and another 183 drilling locations have been identified. Proven and unproven reserves are estimated at 334 Bcfe. The combined transaction is expected to close in January, and Range intends to initially finance the purchase by drawing on its bank credit facility. However, it also has identified “several noncore properties” in its existing property base that it plans to sell next year to fund the acquisitions. Production from the acquired properties is expected to offset production lost through these property sales, Range said. The assets to be sold were not disclosed.

Constellation Energy Partners LLC (CEP) expanded its coalbed methane (CBM) and gas shale holdings in the Cherokee Basin of Oklahoma with an agreement to buy AMVEST Osage Inc. from the Osage Indian Nation for $240 million. The sale is expected to close by the end of the month.

Constellation Energy Partners LLC (CEP) expanded its coalbed methane (CBM) and gas shale holdings in the Cherokee Basin of Oklahoma with an agreement to buy AMVEST Osage Inc. from the Osage Indian Nation for $240 million. The sale is expected to close by the end of the month.

FERC last Monday gave the environmental go-ahead for Trunkline Gas Co.’s proposed pipeline expansion to increase access to Texas’ growing natural gas production, storage fields, pipelines and liquefied natural gas (LNG) terminals.

Backers of the Southeast Supply Header (SESH) gas pipeline project — designed to bring new supplies, including those from the Barnett Shale and Bossier Sands, as well as regasified liquefied natural gas (LNG), to the Southeast market — are expanding the project to reach new markets in conjunction with Southern Natural Gas (SNG), an affiliate of El Paso Corp.