Shale Daily

Acting West Virginia Gov. Earl Ray Tomblin on Wednesday night said he would continue to fight for the state’s huge coal industry, but he also urged state residents to embrace the opportunities that would come from natural gas drilling in the Marcellus Shale.

Dominion said Wednesday it has optioned land in Natrium, WV, to constructa natural gas processing and fractionation facility that would support wet natural gas production from the Marcellus Shale.

Three experienced state energy officials were selected by Pennsylvania Gov.-elect Tom Corbett on Tuesday to helm the Department of Environmental Protection (DEP) and another was tapped as the state’s first Energy Executive.

Questerre Energy Corp. CEO Michael Binnion has launched a blog on the company website to open a “dialogue on shale gas” and issues relevant to the Calgary-based independent.

By the middle of this year most of the Eagle Ford Shale region in South Texas will be blanketed with high-speed terrestrial wireless broadband provided by ERF Wireless unit Energy Broadband Inc., the company said.

Citizens for Pennsylvania’s Future (PennFuture) and 40 other state organizations have sent a letter to Gov.-elect Tom Corbett asking him to maintain the moratorium signed last year by Gov. Ed Rendell that prevents new leases for deep natural gas drilling in the state’s forests.

Radio talk show host Ron Morris has begun broadcasting a 12-part series on the Marcellus Shale on a Pittsburgh radio station, WMNY 1360, aimed at getting the facts about shale development.

Energen Resources Corp. has purchased three-year leases for about 17,000 net acres in the Bone Spring and Avalon shale trends in the Permian Basin from various Texas state agencies and other entities for $15.3 million, said parent Energen Corp. Based on 320-acre spacing, the company estimates that the acreage in Reeves, Ward, Loving and Winkler counties offers potential for approximately 50 Bone Spring locations and 50 Avalon Shale locations. The typical Bone Spring well has estimated ultimate recovery of 400,000-500,000 boe, the company said. Energen Resources estimates that drilling and completion costs are approximately $7.5 million per well. It has drilled eight Bone Spring wells in Ward and Winkler counties and participated in another 23 wells. The company announced plans in December to drill another 13 Bone Spring net wells in 2011 and at least one Avalon Shale well. Potential drilling plans on the new leases in 2011 have not been determined.

Houston-based Magnum Hunter Resources Corp. plans to spend a good chunk of its 2011 drilling and operational budget not far from home — in the Eagle Ford Shale play of South Texas. In outlining recent drilling results there the company emphasized that it’s learning as it goes.