E&P

A group of U.S. oil and gas producers has asked the Texas Supreme Court to reconsider a 5-4 decision against Chesapeake Energy Corp. in a natural gas royalties lawsuit concerning leases in the Barnett Shale.

Three environmental groups received a favorable opinion from the U.S. District Court for the Ninth Circuit in San Francisco last Monday, remanding their challenge to U.S. Bureau Land Management (BLM) leases to the federal district court judge in Montana who previously rejected their claims.

Chesapeake Energy Corp. and Encana Corp. have the highest maintenance capital costs and debt in their peer group, while EOG Resources Inc., Range Resources Corp., and EQT Corp. may be among those best positioned, enabling them more easily to replace forecasted production this year with cash flow, according to IHS Inc.

California regulators on Thursday issued civil penalties of $4,500 each to 30 oil/gas operators that failed to report water use data required under a state law (SB 1281) passed last year. More fines are expected.

The oil-directed rig count took a big step down in the latest tally by Baker Hughes Inc. Declines in oil drilling mean eventual declines in associated natural gas production. But not to worry, there’s still the Marcellus Shale.

The U.S. oil and gas rig count saw a net decline of 13 as 16 rigs retreated from land drilling while three joined the hunt offshore, according to Baker Hughes Inc. in its report for the week ending Sept. 4. Texas took the biggest hit, losing 11 rigs to the ongoing price route.

Schlumberger Ltd. is expanding its repertoire after purchasing synthetic diamond expert Novatek Inc., a frequent drillbit technology partner.

Patterson-UTI Energy Inc. (PTEN), one of the biggest onshore contract drilling and pressure pumping companies in North America, reported that its rig count in August fell by almost half from a year ago and was down 5% month/month.

Privately-owned Chief Oil & Gas LLC has confirmed that it plans to close its Appalachian headquarters in Western Pennsylvania by the end of October as part of a broader administrative consolidation within the company.