Swepi

The Pennsylvania Department of Environmental Protection (DEP) finalized more than $374,000 in penalties Aug. 20 against three of the state’s leading natural gas producers for methane migration violations that affected private drinking water wells.

XTO Energy Inc.’s natural gas liquids (NGL) recovery facility in Butler County, PA, has entered service processing wet gas from Marcellus and Utica shale drilling in southwestern Pennsylvania.

Members of the Pittsburgh Presbytery voted to end a one-year moratorium on shale development, a decision that could potentially open property from the organization’s 150 churches to Marcellus Shale oil and gas leasing.

A professor at Ohio’s Cleveland State University (CSU) said permitting activity in the Utica Shale this year is in line with projections but further success in the play depends on obtaining accurate decline curve data for production over a longer period of time.

The Marcellus Shale’s location near high-consumption centers, its bountiful reserves and its chameleon-like ability to produce wet or dry natural gas in abundance have made it a worthwhile destination for midstream operators, and it should remain so for several years, according to Fitch Ratings.

Comstock Resources Inc. agreed to purchase oil and gas properties from SWEPI LP, an affiliate of Shell Exploration & Production, for $170 million. With the acquisition, Comstock will acquire 11,500 (7,600 net) acres of producing properties in the Dinn Ranch, Fandango, Rosita and Rosita East fields in Duval and Zapata counties in South Texas. The properties include 70 (43.3 net) producing wells that are currently producing 21.9 MMcf/d. Comstock estimates that the properties have net proved developed reserves of approximately 57.8 Bcf. In addition to the proved reserves, the Frisco, TX-based producer estimates that the properties could yield an additional 90 Bcf from future exploitation. The transaction is expected to close in December.