Shale Daily

Range Resources Corp. said its estimated unproved resource potential at the end of 2010 reached 35-52 Tcfe, versus 2009’s estimate of 24-32 Tcfe, which was fueled by stronger drilling results. By itself, the resource potential in the Marcellus Shale leasehold jumped to 20-31 Tcfe on higher per/well reserves.

Copano Energy LLC said it has struck long-term contracts with several Eagle Ford Shale producers, including Abraxas Petroleum Corp., Paloma Resources, Petrohawk Energy Corp., Pioneer Natural Resources, Reliance Eagleford Upstream Holding LP, Newpek LLC and Riley Exploration. It has also expanded its contract with GeoSouthern Resources to include a larger acreage dedication. Copano will provide gathering, compression, processing and fractionation services for the producers in portions of DeWitt, Karnes and Live Oak counties, TX, under the contracts, which are primarily fee-based. Copano has secured firm producer commitments for aggregate production of up to 120,000 MMBtu/d and additional commitments for production from approximately 135,000 gross acres in the Eagle Ford. Copano also said it will extend its DK Pipeline by 58 miles through Lavaca County, TX, to connect with the DK Pipeline system into its Houston Central Complex.

Consol Energy Inc. has proved gas reserves of 3.7 Tcf as of the end of last year, marking an increase of 1.8 Tcf, or 95%, from the 1.9 Tcf reported at year-end 2009. Coalbed methane (CBM) and a “nice jump” in the Marcellus Shale were credited for the growth.

New York should proceed cautiously as it considers how to regulate hydraulic fracturing (hydrofracking) in shale drilling operations, but the state shouldn’t wait for federal authorities to complete a lengthy review, the incoming Department of Environmental Conservation (DEC) chief said Tuesday.

Whether Range Resources unit Range Production Co. drilling in the Barnett Shale caused alleged water well contamination is a tough call, but it can be made on the evidence available, staff of the Railroad Commission of Texas (RRC) told hearing examiners in its closing statement on the case Tuesday.

A Louisiana government official’s statement that the state will see a decrease in tax revenues in coming years due to natural gas drillers moving their operations from taxable areas in South Louisiana to tax-exempt fields in North Louisiana “could not be further from the truth,” according to Louisiana Oil & Gas Association (LOGA) President Don Briggs.

The natural gas industry needs to improve its image in Pennsylvania, and sitting down with elected officials and environmental leaders might be the best way to begin that process, according to former Gov. Tom Ridge, now a strategic adviser for the Marcellus Shale Coalition (MSC).

Global gas producer BG Group plc, which has substantial production under way in the Haynesville Shale and growing output in the Marcellus, said Tuesday its net production in the United States by 2015 will nearly double to 190,000 boe/d from the current 100,000 boe/d.

Merger and acquisition (M&A) activity in the midstream sector last year got back to the all-time high level of 2006. Nearly all (94%) of the activity last year was driven by spending on gas pipelines and gas gathering and processing facilities in the United States, and shale gas plays featured prominently in that activity, according to the “IHS Herold 2011 Global Midstream M&A Review.”