Shale Daily

EP Energy Corp. is tightening up its portfolio with a Texas-Louisiana two-stepper: buying in the Midland Basin and selling in the Ark-La-Tex Cotton Valley and South Louisiana Wilcox areas, the company said Thursday.

Consol Energy Inc. grew its Marcellus Shale production by about 94% during the first quarter of 2014, and executives said the company plans to expand the use of reduced cluster spacing (RCS) and short stage lengths (SSL) over the course of the year.

After receiving upwards of 5.5 Bcf/d in shipping interest from Appalachian producers during a nonbinding open season launched in January for its east end backhaul from Ohio to Illinois, Rockies Express Pipeline LLC (REX) announced holding a binding open season on Wednesday for the 1.2 Bcf/d it has available on the stretch.

Rex Energy Corp. reported an 11% increase in production in 1Q2014 compared with 1Q2013, a 15% increase in propane price realizations, and earnings per share well above consensus estimates during a conference call with analysts Wednesday that was overflowing with good news.

North Dakota Gov. Jack Dalrymple has rejected a request by state house minority Democrats for a special legislative session to address possible funding problems tied to keeping up with the Williston Basin oil boom. Dalrymple expressed confidence that the state could provide the financial assistance needed to help communities affected until lawmakers reconvene in January.

The Appalachian Basin is the “biggest, baddest basin there is” in terms of natural gas production, and the Marcellus Shale will be an abundant source of gas for years, even with higher transportation costs, according to analysts with U.S. Capital Advisors LLC (USCA).

Accelerated completions and more pad drilling helped Houston-based Sanchez Energy Corp. triple first quarter production from a year ago. Eagle Ford Shale operations are in full development mode, and the company expects to spud its first Tuscaloosa Marine Shale (TMS) well next month.

BP plc is taking a $521 million impairment on its Utica Shale acreage in Ohio and will not proceed with development in the play, top management said Tuesday.

Already considered the leader of the pack in the Marcellus Shale, Range Resources Corp. padded its lead in the play during 1Q2014 with record-setting production from one super-rich well in southwestern Pennsylvania and decreasing well costs.