Monthly Archives: July 2015

Goodrich sells proved reserves, piece of Eagle Ford leasehold in $118 million dealIndependent oil and gas producer Goodrich Petroleum said Monday it’s selling to an unidentified buyer its proved reserves and associated leasehold in the Eagle Ford Shale for $118 million.The Houston, Texas-based company is retaining approximately 58% (roughly 17,000 acres) of its undeveloped leasehold in the play in Texas’ LaSalle and Frio counties for future development or sale, Kallanish understands.Assets being sold produced an average of roughly 2,850 barrels of oil-equivalent per day (BOE/d, approximately 75% oil) during the first quarter.The company said it expects to book a gain of roughly $50-60 million on the sale at closing, with the funds used to pay off its bank revolver, retaining the difference in cash. The monetization of our proved reserves and associated acreage from our drilling efforts to date greatly improves our liquidity while maintaining a position in the Eagle Ford for future


Crude oil storage company Fairway Energy Partners on Thursday announced the closing of an undisclosed amount of private equity financing from Haddington Ventures, with proceeds to be used to construct the first phase of the Pierce Junction crude oil storage facility.Fairway will convert three existing underground storage caverns at the Pierce Junction Salt Dome in south Houston, Texas, into crude oil storage service and will build-out all requisite pipelines, brine ponds, interconnects and pumping capacity to put the facility into commercial service, Kallanish learns.The initial phase of the project is expected to be in service by the end of 2016 and has been designed to allow for storage of roughly 10 million barrels (MMBbl). Overall, Fairway has expansion rights up to a total of approximately 20 MMBbl at Pierce Junction.Phase I also includes the construction of two separate bi-directional, 24-inch pipelines to connect the facility to the existing Houston area crude oil grid, adding

EQT Midstream Partners on Thursday said it’s signed an agreement with Range Resources–Appalachia to construct a $250 million natural gas header pipeline in southwest Pennsylvania to support Range’s dry Marcellus and Utica Shale development.The 32-mile pipeline’s projected capacity is in excess of 500 million cubic feet per day (MMcf/d), and is backed by a long-term firm capacity reservation commitment, according to EQT Midstream.The master limited partnership midstreamer plans to complete the project in two phases, with phase one expected to be in-service by the third quarter of 2016, and phase two online by mid-year 2017.The majority of capital investment is expected throughout 2016 and the first half of 2017.Note: Read all of the Kallanish Commodities Energy News which is published daily online,  Kallanish also publishes a daily newsletter, and will be happy to add your name to the distribution list.  Simply email The post EQT Mi

Houston, Texas-based independent producer Noble Energy said this week its $3.9 billion acquisition of Rosetta Resources, effective July 20.Rosetta stockholders overwhelmingly approved the deal, according to Noble. Rosetta is now a wholly-owned subsidiary of Noble.Rosetta stockholders will receive 0.542 shares of Noble common stock for each of their shares and cash in lieu of fractional shares, and Noble will issue roughly 41 million shares of common stock in the transaction.Noble, which has focused its U.S. drilling in Colorado and the Marcellus Shale, gains access to Rosetta’s more-than 100,000 acres in Texas’ Permian Basin and Eagle Ford Shale play. The assets produced 66,000 barrels of oil equivalent per day (BOE/d) in the first quarter. The addition of Rosetta s Eagle Ford Shale and Permian positions expands our onshore business with high-quality acreage in two premier unconventional basins, increasing our development inventory and further diversifying our portfolio, said Dave

The following is a guest post by Russ Miller, Vice President of Gas Supply and Marketing and a Managing Board Member for Leatherstocking Gas Company (LGC). For those of you who don’t know LGC is the newest natural gas utility in Pennsylvanian in forty years. It received authorization to serve parts of Susquehanna and Bradford County in September 2012. The Company is Joint Venture between Corning Natural Gas Holding Corporation and Mirabito Holdings Inc.LCG started building its system a few years ago. How large is the LGC system in Susquehanna and Bradford Counties now?As of July, LGC has installed 16 miles of pipe in Susquehanna County. The system currently serves 135 residential, 33 commercial and 11 public authority customers in the Bridgewater/Montrose area. And 81 additional customers are scheduled for connection on this system by November 2015.Montrose System EnlargedIn Elk Lake we serve the Elk Lake School Complex, which includes K-12 facilities, the Susquehanna County Career

An Oklahoma Corporation Commission just-released directive means oil and gas operators in the state will face additional restrictions on disposal wells linked to man-made earthquakes, the regulator said Friday.The updated directive from the commission expands the areas for additional scrutiny of disposal wells in so-called earthquake areas of interest. It also requires operators to reduce the depths of disposal wells injecting into the Arbuckle formation, a change from earlier when they could opt to just reduce volumes.In March, the commission issued a directive to operators of more than 300 disposal wells to prove they weren t injecting through the Arbuckle and into the crystalline base. If they were, operators were told to plug the wells or reduce volumes. Seismologists have warned of the potential risks of causing earthquakes from injecting into the rock below the Arkbuckle. Though it s too soon to know the results of the first directive, seismologists agree that injection into or

Energy Transfer Equity, which earlier this week said it continues to pursue if proposed acquisition of Williams, said Thursday it has entered into a confidentiality agreement with Williams to pursue the Oklahoma pipeline company’s strategic alternatives process.“ETE [Energy Transfer Equity] is looking forward to engaging with Williams and working toward a transaction that will deliver compelling value to both companies stakeholders,” said Energy Transfer spokeswoman Vicki Granado.Last month, Williams rejected Energy Transfer’s unsolicited bid worth roughly $53 billion, saying the offer “significantly undervalues” the midstreamer, which has 33,000 miles of pipeline from the Gulf of Mexico to Canada, Kallanish previously reported.In response to the bid, Williams said it was opening itself up to alternatives that could include a sale or merger. Another option would be for the Tulsa, Oklahoma-based energy company to move forward with its $13.8 billion plan to purchase the rema