The deal that Chesapeake Energy Corp. made on Monday to sell half its leasehold in the Mississippian Lime was calculated at around $2,500/acre gross, or less than $1,000/acre net, not necessarily the price that the market had been expecting. The lower expected price may be attributed to several things, said analysts: foreign firms getting more savvy about undeveloped leaseholds, the value of the formation, or Chesapeake’s hurry to fix its balance sheet.
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Carrizo 4Q: Oilier Is Better
The fourth quarter was Carrizo Oil & Gas Inc.’s ninth consecutive quarter of revenue growth and one during which it charted record oil production and oil revenue, affirming the wisdom of management’s decision to transform Carrizo into an oil company, CEO Chip Johnson said.
Controversy Gushes from Reservation in Bakken
Lawsuits have been filed in federal and state courts over a part of North Dakota’s prosperous Bakken Shale that lies under the Fort Berthold Reservation, which according to the state’s latest statistics makes up nearly 20% of the play’s ever-growing oil production.
Pennsylvania Official: Drilling on Public Lands Will Raise $60M
A Pennsylvania official said royalties from Marcellus Shale natural gas drilling on public lands will add about $60 million to state coffers this year.
Shale Gas Prices At Bottom, Say E&P Execs
Most exploration and production (E&P) executives believe shale natural gas prices have bottomed out, with 87% predicting that prices will stay the same or increase over the next two years, according to a survey of 357 North American executives.
Cline Shale Spurs Pipeline Capacity Restart
As producers’ interest in the Permian Basin’s Cline Shale oil play continues to grow, Occidental Petroleum Corp. unit Centurion Pipeline LP is reactivating and expanding an existing pipeline system overlying the Cline, the company said.
EMG Finalizes Increased Stake in Utica Midstream Venture
Appalachian midstream provider MarkWest Energy Partners LP and private equity fund The Energy and Minerals Group (EMG) have completed an amendment to give EMG a larger stake in their joint venture (JV) in the Utica Shale.
Horn River Pipeline Setback Aids Quicksilver’s Timing
Quicksilver Resources Inc. found a silver lining in the recent decision by Canada’s National Energy Board (NEB) to reject TransCanada Corp.’s Komie North Extension pipeline project in the Horn River Basin.
Industry Brief
KW Express LLC a partnership of Kinder Morgan Energy Partners LP (KMP) and Watco Companies LLC, has entered into a long-term agreement with Mercuria Energy Trading Co. Inc. to construct a 210,000 b/d crude-by-rail project at the Greens Port Industrial Park on the Houston Ship Channel. The project will allow Mercuria Energy Trading Inc. to source crude from various locations, including Cushing, OK, West Texas, the Bakken Shale area and Western Canada for delivery by rail into the Houston Ship Channel for distribution to various refiners via pipeline and barges. The facility will have the capability to unload and load up to three unit trains per day of crude oil and condensate as well as provide for up to 100,000 b/d of barge loading capacity. KW Express will own 85% of the project and, together with Watco, operate the project once completed. Mercuria will own the remaining 15% interes
Shale Gas, Liquids Growth Reality Impacting Global Balances
The “reality and potential” of expanding natural gas and liquids from shale continues to have a dramatic impact on the regional and global balances for both economies, PIRA Energy Group said Monday in a new report.