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From: jrhana10/8/2010 8:45:56 PM
   of 6158
 
Norse acquires 30K+ acres of 3D seismic while pipeline interconnect built
Norse Energy

waytogoto.com

Lysaker, Norway-based Norse Energy Corp. (OTCQX: NSEEY), or its North American subsidiary, Nornew, Inc. (aka Norse Energy USA), with offices in Norwich, New York, northeast of Binghamton, is the most active driller in Chenango County, NY. It had drilled dozens of wells in the sandstone formations in both Madison and Chenango counties, especially in the towns of Lebanon, Plymouth and Smyrna. A company spokesman stated that it had purchased most of the available Marcellus and Utica shale acreage in these two counties or else already had it under lease. As of January, 2010 its leasehold consisted of 180,000 acres. 130,000 of the total acreage had stacked potential not only for the Herkimer formation, but also for the Marcellus and Utica shales.




N.Y. map courtesy Norse Energy

Contents

* 1 Latest Company Developments
* 2 2008 Development Timeline
o 2.1 Many Herkimer wells drilled - Central NY leasehold grows
o 2.2 Setting up infrastructure
o 2.3 Acreage grows - Marcellus shale permits
o 2.4 Drilling results
o 2.5 Acreage prospective for Marcellus and Utica shales
o 2.6 Shoots seismic and looks for a strategic partner
* 3 2009 Development Timeline
o 3.1 Lebanon Rig Fire
o 3.2 More drilling results
* 4 2010 Development Timeline
o 4.1 Large scale seismic testing
o 4.2 Herkimer drilling suspended due to water in wells
o 4.3 Gas gathering trunk interconnects with Dominion pipeline
* 5 Spotlight Issues
* 6 Executive Contacts
* 7 Resources

Latest Company Developments

At the conclusion of 2009, Norse's production from the Herkimer formation amounted to 12 Mmcf/d. While much of its acreage is prospective for Marcellus and Utica shales too, drilling is on hold for these pending final approval of New York State's Supplemental Generic Environmental Impact Statement. Final approval of it is expected to occur before the end of the second quarter of 2010. Horizontal drilling is permissible in the Herkimer formation so long as the limit of 80,000 gallons per fracture stimulation is not exceeded.

2008 Development Timeline

It was reported in August, 2008 that Norse had drilled eleven wells in the previous twelve months in Chenango County. It had been active there since 1996. Later reports indicated that all eleven had been successful in fractured Silurian Herkimer sandstone.

Many Herkimer wells drilled - Central NY leasehold grows

By Septeber, 2008 the company announced that two of its wells in northern Chenango County eacn had been producing approximately 1 Mmcf/d of natgas from the Herkimer formation. Neither well location was disclosed, yet most of Norse's Herkimer wells are located on various country roads west of State Route 12 and 12B between South Oxford and Pine Woods in rural Chenango County. There is also a small cluster of wells near Coventryville off State Route 41. Production from these wells flows out either through a New York State Gas & Electric or a Dominion line.

An October, 2008 report indicated Norse's leasehold had grown to 130,000 acres in Broome, Chenango and Madison counties in New York. It had drilled two additional wells near Norwich, New York, and also built a gathering system there.

Setting up infrastructure

The company planned to drill in central Broome County from where it could ship gas out through the Millennium Pipeline.

It had also set up a gas compression station at the northern end of its zone of operations so gas could be flowed into a Dominion pipeline running through Madison County. Covering more than fifty miles, Norse's gas transportation and gathering pipelines anchored the company's acreage and added considerable value.

Nornew had a pipeline underway that ran south through Chenango Co. to connect up with the Millennium Pipeline in Broome County. It was to be completed by 2010, and it traveled from Plymouth to Preston, Oxford, Coventry and Afton. Offshoots from this main line were to connect up with individual well locations along the way.
[edit]
Acreage grows - Marcellus shale permits

According to a November, 2008 report, Norse's total leasehold had swollen to roughly 175,000 acres. It had applied for several permits for Marcellus shale wells in the same general area as mentioned above for its Herkimer wells--off State Route 12 between South Oxford and Smyrna. There is also another small cluster of permits near Coventryville off Route 41.

Drilling results

In December, 2008 the company stated that it had drilled 33 wells during 2008 in New York State.

The company's Q4, 2008 Quarterly Report stated that its reserves are estimated at 1.2 Bcf of natgas per Herkimer well, and that the last five horizontal wells drilled had averaged 1 Mmcf/d.

Acreage prospective for Marcellus and Utica shales

The lion's share of Norse's 175,000 acre New York leasehold was prospective for Marcellus shale, and the evaluation of its potential production had led to a large increase in the company's contingent reserves. Some of the central New York leases were also prospective for Utica shale. That also had a positive impact upon contingent reserves.

Shoots seismic and looks for a strategic partner

The company had been very active researching prospective Marcellus and Utica locations as well as in the Herkimer. In the process, its exploration department shot over 500 miles of 2D seismic data during 2008. The company had retained an investment bank to assist it in locating a strategic partner to help fully develop its shale potential in New York.

2009 Development Timeline

Norse/Nornew planned 25 more New York Herkimer wells in 2009. The company continued to drill numerous wells in Chenango Co. along with those in other counties.



Norse Energy U.S.A. Herkimer Formation Drilling Rig In Madison Co., NY
Courtesy of Norse Energy

Lebanon Rig Fire

The company was in the news in March, 2009 when there was a gas rig fire in southern Madison County near the town of Lebanon on the border with Chenango County. According to the report, another well fire had occurred a couple of months earlier two miles from this location. It was mentioned that Nornew had around 100 wells in the area of Lebanon and the neighboring town of Smyrna. This fire occurred in a very isolated area, and the cause of the fire was unknown.

More drilling results

An April, 2009 update mentioned that Nornew had identified a minimum of 250 prospective locations in the Herkimer formation on its 130,000 acres in central New York. The report also mentioned that the company's two most recent wells had production rates of 2.5 Mmcf/d. As of late April, five successful horizontal Herkimer wells had been drilled in 2009, and 18 previously drilled to various formations were awaiting pipeline hookup.

2010 Development Timeline

A January, 2010 company update noted that Norse Energy's leasehold had grown to 180,000 acres and 130,000 of them had "stacked potential". By stacked the company meant that this acreage also had potential for Marcellus and Utica shale development as well as Herkimer. The company noted that horizontal shale wells were presently prohibited in New York State pending final approval of the State's Supplemental Generic Impact Statement (sGIS) that was expected by the second quarter of 2010. At year end 2009, Norse was producing 12 Mmcf/d primarily from the Herkimer formation. Horizontal drilling had been permitted in that formation but with a limit of 80,000 gallons per fracture stimulation.

Large scale seismic testing

A news account in July, 2010 reported that Norse had crews out shooting 38,000 acres of 3D seismic data, representing approximately around 21% of its total acreage. Analysis of the 3D data was to help highlight the stacked potential of the multiple formations on Norse's land.

Herkimer drilling suspended due to water in wells

Drilling had been halted during the second quarter of 2010 due to water in a few of its Herkimer formation wells. Norse wanted to take time to analyze this issue, and also was awaited results of its seismic studies. It was later decided that the water was unlikely to affect production from these wells. Drilling was to resume during the fourth quarter of the year once the aforementioned 3D seismic became available.

Gas gathering trunk interconnects with Dominion pipeline

In late August, 2009 Norse announced that it had secured the last right of way it needed to complete an 87 mile-long gas gathering line providing access to most of its acreage in central NY State. By early October, the company stated that it had begun construction of a new pipeline interconnect for this gathering line with Dominion Transmission near the Village of Morrisville in Madison Co., NY. The new tap was to have capacity of 25 Mmcf/d and provide gas delivery access into two of Dominion's parallel pipelines as well as future interconnection to the Tennessee Gas and Millennium Pipelines.

Spotlight Issues

* Assuming New York State's sGIS blesses horizontal Marcellus and Utica shale drilling and DEC issues permits, Norse could be one of the biggest beneficiaries with its 130,000 acres prospective for both formations.
* Norse has been active in central New York since 1996. The company has had time to establish its gathering lines and compression plants. It is well positioned to take advantage of new production coming from horizontally drilling these presently off-limit shale formations.
* The aforementioned issue of water in a few of its Herkimer wells that resulted in a drilling shutdown during the 2nd quarter of 2010 is not expected to be any impediment to future production.
* Higher natgas production from Norse's newer wells demonstrates a learning curve effect and that the company's drilling efforts are gaining in productivity with experience. Combined with utilizing its new 3D seismic data the company should be in very good position to continue drilling some very productive Herkimer wells. These will hold its acreage until Utica and Marcellus reserves can be drilled once DEC begins issuing drilling permits.

Executive Contacts

* Øivind Risberg is Norse's Chief Executive Officer.
* Steven Keyes is its Vice President of Norse Operations.
* David Holbrook is a company spokesman and attorney.
* Mark Dice is President and COO of Norse Energy USA.
* Richard Broughrum is CFO of Norse Energy USA.

Resources

* Nornew Inc. Exploration Company In USA (Wiki), - Wikispaces
* Norse Energy Corp. (All wells.) -Google Maps
* Norse Energy Corp. - Active wells -Google Maps

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To: jrhana who wrote (3819)10/8/2010 9:03:09 PM
From: jrhana
   of 6158
 
Finally, Cabots Reply to Dimock Water Well Contamination

gomarcellusshale.com

I put this in the "Finally, some science to go along with the Hysteria" category.
As a geologist I have never been comfortable with the shoddy "proof" that
the DEP used to confirm that Marcellus drilling ruined the Dimock water
supply. I have heard A LOT of anecdotal evidence from both industry and
the field level DEP inspectors that gas was in the water supply long
before any drilling even started in Susquehanna County. And I have been
very critical of Cabot for not speaking up sooner if they believed they
were innocent of the accusations.
Well, looks like the industry just fired a salvo back across the bow of the governmental agencies. No,
maybe more like a direct hit...broadside.
This is a long read but Cabot seems to have proof, including testing and signed affidavits.
Every anti drilling group uses Dimock as their poster child...looks like they won't be able to anymore...IF THEY ARE HONEST!

This will get interesting.

Article with links to Cabots letter to Secretary Hanger
pressconnects.com.

Cabots letter to Secretary Hanger
pressconnects.com

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To: jrhana who wrote (3868)10/8/2010 9:47:06 PM
From: jrhana
   of 6158
 
Rather lengthy but very interesting and IMO convincing letter by Cabot refuting all the stuff they have been accused of relative to the Dimock situation. Worthy reading by anyone with an interest in the pollution issues and frac drilling.

pressconnects.com

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From: jrhana10/8/2010 10:05:55 PM
   of 6158
 
Is the Niobrara the next Eagle Ford?

pennenergy.com

The 'surprise factor' of the Niobrara may lure investors away from 'mature' Bakken

Investors will continue to abandon natural gas sensitive areas and refocus on oil, specifically the Niobrara, noted a September 29 report from Jefferies & Co. Inc.

Because the Niobrara is in its infancy, Jefferies called the play “ripe for investing” as “the market likes room for surprises.” While the company points out the Bakken as the “premier shale oil play,” it is “more mature and hence has less potential for surprises.”

The company points out, however, that the Niobrara “is not well understood and data has been spotty.” On the other hand, the Bakken is “verifiably economic with growth potential in Montana and extensional counties to the south of North Dakota.”

The company calls the Eagle Ford in the first quarter of 2010 the last “resource catalyst” that the E&P sector has seen and is looking to well results that should come from the Niobrara this quarter, noting that limited results from EOG Resources and Noble Energy Inc. have, thus far, been promising. The company expects to see results from Carizo, SM Energy, QEP Resources, Rex Energy and Voyer Oil and Gas by the end of the year.

Source: Jefferies & Co. Inc.

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From: jrhana10/9/2010 2:24:42 PM
   of 6158
 
Marcellus Shale Drilling: Environmental Impact

kdka.com

ct 8, 2010 9:24 pm US/Eastern

Drilling for natural gas in the so-called "Marcellus Shale" deposit is creating thousands of jobs and turning farmers into millionaires. But critics say it's also scarring the land, creating noise and dirt. (File)

PITTSBURGH (KDKA) ?

Drilling for natural gas in the so-called "Marcellus Shale" deposit is creating thousands of jobs and turning farmers into millionaires. But critics say it's also scarring the land, creating noise and dirt. (File)


KDKA Investigator Andy Sheehan has been looking at drilling in the Marcellus Shale, examining concerns about water contamination and other environmental impacts.

Can drilling be done safely without major impacts on the environment? An environmentalist believes it can.

"It's a gold rush. It's a modern day gold rush," Gov. Ed Rendell said.

From the governor on down, that much is clear – there's big money in drilling for natural gas, but can it be done safely?

Environmental activist Robert Kennedy, Jr., shocked drilling critics at a clean water conference here last week by saying it could be done with proper regulation.

"You need really strong regulations and you need a really tough, vigilant, aggressive, regulatory agency," Kennedy said.

A strong proponent of wind and solar energy, Kennedy acknowledges those sources will not meet America's shorter term energy needs and said natural gas is far cleaner than coal with less than half the carbon and without fly ash, acid mine run-off and mountain top mining.

"There's costs to every kind of energy and the cost of gas, if it's done correctly, to local communities is dwarfed by the cost of coal," Kennedy said.

But make no mistake – natural gas drilling is an industrial activity and there are horror stories.

For more than a year, June Chappel in Hickory Township had to endure a round-the-clock cacophony of drilling and truck traffic, dust and dirt and noxious odors.

Just beyond her property line is a pit which until recently held the water and chemicals used in the drilling process. She says it smelled of gas and kerosene.

"We had to sit in our house with the windows closed and all the doors closed up," she said.

Sheehan: "You couldn't breathe?"

Chappel: "No, it was sickening. It would make you sick."

Even the industry agrees there's no getting around the fact that drilling can be disruptive and widespread activity will have an impact on the peaceful, rural life in Washington and other counties.

Kennedy wants drills to be a minimum of a mile apart.

"Then you don't get the generators, you don't get the road, the traffic and all of the local impacts of an industrialized landscape on these communities like Washington County which do not want to be industrialized," Kennedy said.

The state Department of Environmental Protection has more than doubled its inspectors and in the past two-and-a-half years have identified 1,435 violations accrued by Marcellus drillers and in a recent three-day enforcement, State police placed 208 frackwater hauling trucks out of service for deficiencies.

Rendell says the hefty severance tax will pay for enforcement, ensuring safe drilling while allowing Pennsylvania to reap the benefits of jobs and economic development.

"I don't want to kill the golden goose. I just want to make sure the goose pays its fair share, and that we do things right," Rendell said.

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From: jrhana10/9/2010 2:28:10 PM
1 Recommendation   of 6158
 
Oil shale drilling OK at $75/bbl.

glgroup.com

October 8, 2010

* Analysis by: Michael Lynch

Summary

Bentek Energy based in Evergreen, Colorado reports that horizontal drilling and hydraulic fracturing is transforming the domestic crude oil industry. U.S. crude oil production is on the rise for the first time in 23 years. Technology used to develop shale gas also work in oil shale. The most explosive growth is in the Bakken shale of North Dakota. Production is up 79% in the past year. North Dakota now exceeds Louisiana as the 4th largest oil producing state. This is an important development.
Analysis

The above is an extract from a Rigzone Staff report published on October 5. In a recent presentation, Whiting Petroleum Company indicated that average acquisition, finding and development costs for Bakken crude oil was $42.92/bbl. other sources suggest the threshold price is closer to $50/bbl. Still as long as prices stay in their present range, development will continue in the Bakken and explorers will seek similar plays across the U.S. Parts of the Monterey shale in California look promising. The Barnett "Combo" in the Fort Worth basin appears commercial and recent drilling in the northern echelon of the Eagle Ford shale in south Texas also appears to be commercial. The truth of the matter is that horizontal drilling with multiple stage fracturing has transformed not only shale formations but also depleted sandstone and limestone reservoir all over the world. The growth of shale oil production will continue until such time as natural gas becomes a widespread transportation fuel and because of its low cost will undercut gasoline and diesel. Despite the efforts of Apache Corporation, Questar and T. Boone Pickens, this may take ten years or so. Nevertheless, the move to greater use of natural gas is relentless. Will this result in putting a cap on crude oil prices?

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From: jrhana10/9/2010 2:31:53 PM
   of 6158
 
ND oil rig count breaks record set in 1981

businessweek.com

The Associated Press October 8, 2010, 10:56AM ET


BISMARCK, N.D.

A record number of rigs are drilling in North Dakota's oil patch.

The state Department of Mineral Resources on Friday said that 154 rigs were drilling in western North Dakota. That breaks the record 148 rigs set in October 1981.

Government and industry officials say modern drill rigs that use advanced horizontal drilling techniques are four to eight times more efficient than rigs that drilled vertical wells in the 1980s. Each active oil rig represents about 40 direct jobs and 80 indirect jobs in North Dakota.

Nearly all the rigs drilling at present are aimed at the rich Bakken shale and Three Forks-Sanish oil reservoirs.

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From: jrhana10/9/2010 3:11:11 PM
   of 6158
 
Chesapeake gets permits for 18 compressors in Wetzel Co., WV

waytogoto.com

Chesapeake Energy Corporation (NYSE: CHK) is the number two driller of natural gas in the U.S. It is the most active driller in the Marcellus shale play as well as the largest leaseholder. Its headquarters is in the near-northwest side of Oklahoma City, Oklahoma.

Chesapeake has approximately 1.55 million net acres under lease in the Marcellus shale with total proved reserves of 265 Bcfe. It is the largest leaseholder in the Marcellus play and its most active driller. The company has projected its ultimately recoverable unrisked unproved reserves almost 70 Tcf.


Chesapeake well site, Susquehanna Co., PA
Photo credit - Dave Messersmith, Penn State Cooperative Extension

ontents

* 1 Latest Operating Results
* 2 2008 Development Timeline
o 2.1 Leasing and Drilling Activities
o 2.2 Delaware Basin Water Withdrawals
o 2.3 Statoil-Hydro Oil Joint Venture
* 3 2009 Development Timeline
o 3.1 Robson Well
o 3.2 Towanda Field Office
o 3.3 West Virginia: Parks and Helicopters
o 3.4 Drilling in Bradford County
o 3.5 Water issues in northeast Pennsylvania
o 3.6 Leasing In Wyoming, Susquehanna, Bradford and Broome Counties
o 3.7 Well results from the 2nd and 3rd quarters
o 3.8 Drilling in a Pittsburgh's suburb
o 3.9 New Pipeline Facility
o 3.10 2009 Year-end Results
* 4 2010 Development Timeline
o 4.1 Susquehanna County Joint Venture
o 4.2 West Viginia Northern Panhandle Leasehold
+ 4.2.1 Marshall Co., WV Leasing Activity
+ 4.2.2 Well fire on Pleasants Ridge
+ 4.2.3 The Highlands
+ 4.2.4 Wetzel Co. acquisition
+ 4.2.5 Wetzel Co. compressors
o 4.3 Bradford County Road Work
* 5 Spotlight Issues
* 6 Executive contacts

Latest Operating Results

During the second quarter of 2010, Chesapeake's Marcellus shale production was 105 Mmcfe/d. At the close of first half (June 30), production had risen to 130 Mmcfe/d. The company expected to add another 60 Mmcfe/d from the West Virginia portion of the play in the second half of the year. The company was fielding 26 operated rigs and planned to add 2 more to drill a total of 150 net wells during 2010.

A few of its most notable wells from the second quarter '10:
Well Qtr. Location 24 hr. peak rate Mmcf/d
---- ---- -------- ------------------------
Mowry 1H 2Q10 Bradford Co., PA 9.9
Przybyszewski 4H 2Q10 Susquehanna Co., PA 9.7
White 2H 2Q10 Susquehanna Co., PA 9.0

2008 Development Timeline

Chesapeake pursued a very aggressive leasing program throughout the Marcellus shale formation during 2008.
Leasing and Drilling Activities

Typical activities during the year:

* A September, 2008 report indicated that Chesapeake was drilling in the Elmira, N.Y area.

* The company also had a large number of drilling permits either accepted or pending in Pennsylvania especially in Bradford, Susquehanna, and Wyoming Counties.

* An October, 2008 report noted a great deal of leasing activity by Chesapeake Appalachia LLC in Bradford County, Pennsylvania. The Bradford County Registrar of Deeds stated that as of that date 2,018 gas leases had been signed with Chesapeake and recorded during 2008.

* Also in late December, 2008 the company had taken out drilling permits in the Town of Hancock in Delaware County, New York. Five wells were proposed with drilling slated to begin in 2009.

Delaware Basin Water Withdrawals

In October, 2008 Chesapeake had applied for a permit to the Delaware River Basin Commission (DRBC) to withdraw roughly 100,000 gallons per day of water from the East Branch at Peas Eddy, Delaware County, New York. The water was for use use in drilling and fracing gas wells.
Statoil-Hydro Oil Joint Venture

In November, 2008 Statoil-Hydro Oil bought about a one-third share in Chesapeake's Marcellus leasehold for $3.4 billion. This sum consisted of $1.25 billion in cash and an agreement by Statoil-Hydro to fund $2.13 billion of Chesapeake's Marcellus drilling costs. As of February, 2010, Statoil-Hydro's leasehold position amounted to 590,000 net acres of Marcellus shale.

Update: A late March, 2010 press release mentioned that Statoil-Hydro had purchased another 9,000 acres of Chesapeake's Marcellus shale leasehold in Pennsylvania. The purchase price had been $253 million which amounted to $4,325 per acre. This increased Statoil's stake in its joint venture with Chesapeake to 42%.
2009 Development Timeline

During the first half of 2009 Chesapeake intensified its Marcellus exploration activities especially in northeastern Pennsylvania and northern West Virginia.

Much of the company's activity in the Marcellus shale formation has been conducted through a wholly-owned subsidiary, Chesapeake Appalachia LLC headquartered in Charleston, West Virginia. While still maintaining a presence in Charleston, the bulk of the personnel for the company's Eastern Division were transferred to Oklahoma City in early 2009.
Robson Well

In January, 2009 the company was found taking out a drilling permit for the Robson Well on Foxhill Road near Brill Road in Oregon Township, about four miles north of Honesdale in Wayne County, Pennsylvania. According to one account, Chesapeake has approximately 100,000 acres leased in the county. The Robson well targeted the Oriskany Sandstone. Since considerably less fracing fluid is required for Oriskany wells, there was no review of the well permit by the Delaware River Basin Commission, nor did the Pennsylvania Department of Environmental Protection (DEP) need a Marcellus Addendum for it.


obson well site shrouded in fog, Wayne Co., PA
Photo credit - Dave Messersmith, Penn State Cooperative Extension

Nevertheless, there was some concern expressed by environmental advocacy groups that once the well infrastructure, such as holding pit and gas pipelines, was in place that Chesapeake might then reapply to permit the well for drilling to the Marcellus formation. DEP approved clearing the well pad, and the drilling permit was issued in February. A late April, 2009 report found Ziegenfuss Drilling, casing the well point with reinforced steel. In July, 2009 there was a spectacular partial rig collapse as drilling was underway. No injuries were reported.
Towanda Field Office

In 2009, Chesapeake opened a field office in Towanda, Bradford County, Pennsylvania located on Fox Chase Road in a former Ames department store. This office coordinates Marcellus shale development for the company and outreach to residents, community groups and local governments.
West Virginia: Parks and Helicopters

A June, 2009 report found Chesapeake having proposed to the Wheeling, WV Park Commission to lease drilling rights near Oglebay and Wheeling parks in northern West Virginia. The lease was to be approximately 2,200 acres.

Update #1: The Park Commission approved the proposal in early October, and a similar motion was later approved by the Wheeling City Council on October 21, 2009.

Update #2: According to a June, 2010 report terms of the lease called for a 14% royalty and $386,629 signing bonus for each of the City of Wheeling and the Park Commission. The latter organization also received $100,133 to lease property at Wheeling Park. Drilling was to be located in the woods near Oglebay Stables. Chesapeake was to cut a road southwest of the stables to a point in between W.Va. 88 and GC&P Road. A 300 by 400 foot well pad was to be built there. The bridle horse trails close to the stables were to be temporarily closed during the work.

Another separate report, in June 2009, was made of Chesapeake using helicopters to conduct seismic testing in Wetzel County, West Virginia. Dawson Geophysical Co was contractor.

According to one September, 2009 account, Chesapeake was believed to own a large leasehold in Marion, Monongalia, and Preston counties.
Drilling in Bradford County

A late June, 2009 report identified one site where two wells had been drilled by Chesapeake in Bradford County, PA on the 80-acre Morris Otten farm in rural Asylum Township about 45 northwest of Scranton, PA. Another location was identified at year-end 2009 on the Eileen farm in Smithfield Township, PA. It was the site of the horizontal well, Eileen #5h. Smithfield Twp. is roughly 10 miles northwest of Towanda, PA.
Water issues in northeast Pennsylvania

A March, 2009 report indicated Chesapeake had applied to the DRBC to withdraw 1 million gallons of water per day for 30 days from the East Branch of the Delaware River, near Hancock, NY in Delaware County.

Also, in a June, 2009 report Chesapeake had applied for withdrawal of 499,000 gallon/day from Wyalusing Creek, in Rush Twp about twenty miles west of Montrose in Susquehanna County, PA. It was approved by the Susquehanna River Basin Commission for use on a well on the Venderfeltz farm.

July, 2009 found Chesapeake again applying to the DRBC for permission to withdraw one million gallons of water per day from the West Branch of the Delaware River in Buckingham Township, located in Wayne County, PA. In order to minimize the environmental impact on the neighboring communities, the company planned to remove the water using a pipeline system rather than with tanker trucks.
Leasing In Wyoming, Susquehanna, Bradford and Broome Counties

Chesapeake was in the news in September, 2009 when it had made nearly identical offers to two large landholder groups in northeastern Pennsylvania:

* Wyoming County Landowners Group - 37,000 acres - 600-700 landowners.
* The Friendsville Group in Susquehanna and Bradford Counties, PA and Broome County, NY - 30,000 acres - 600 landowners.

The terms of both offers were very similar - $5,750 signing bonus, 5 year lease, 20% royalties. The Friendsville offer had essentially been a counter-offer to one made earlier to the group by Fortuna Energy.
Well results from the 2nd and 3rd quarters

A few of its most notable wells from the second and third quarters '09:
Well Qtr. Location peak rate Mmcf/d
---- ---- -------- -----------------
Vargson-1H 209 Bradford Co., PA 4.6*
Evanchick-2H 209 " " 5.3*
Messenger-3H 209 Wetzel Co., WV 3.5*
Clapper 2H 309 Susquehanna, Co., PA 10.1
Otten 2H 309 Bradford, Co., PA 8.9
White 2H 409 Susquehanna Co., PA 8.7
White 5H 409 Susquehanna Co., PA 8.6
Benscoter 3H 409 Susquehanna Co., PA 8.4
_____________
* 30 day Mmcfe/d average only

Drilling in a Pittsburgh's suburb

In late December, 2009 a news account appeared about Chesapeake proposing to drill two Marcellus shale wells in Allegheny County's North Fayette, an outer suburb of Pittsburgh, PA. The wells were to be drilled on a property owned by Champion Processing Inc. that had been used as a strip mine. Chesapeake had leased 143 acres for the wells located in an industrial zone bordered by State Route 980, Steubenville Pike, Beech Hollow Road and Candor Road very close to the Washington County line. As of December 15, the wells were conditionally approved by the North Fayette Planning Commission pending final approval. The wells were to be drilled vertically to a depth of 7,000 feet with a horizontal leg extending out 4,000 to 5,000 feet. The drilling was expected to last about 3 months. Chesapeake planned to drill additional wells on Champion Processing's adjacent land in Washington County.

Update: In March, 2010 a follow-up article mentioned that Chesapeake's proposal had been approved by the township supervisors of North Fayette and Robinson. Chesapeake had finalized plans to drill five wells on the formerly strip-mined Champion Processing Inc. property. Three wells were to be drilled in Robinson and two in North Fayette.

In July, 2010 Chesapeake was also reported as having made agreements with landowners in Lincoln Place, a distant suburb southeast of Pittsburgh.
New Pipeline Facility

In December, 2009, a press release appeared noting that Chesapeake and Spectra Energy had teamed up to expand two pipelines bringing natural gas from the Marcellus shale into New York City. The expansion was to include Spectra Energy's Texas Eastern pipeline as well as its Algonquin system. There was also to be included in the expansion a 16-mile, 30 inch pipeline segment connecting Staten Island to Manhattan. The expansion was expected to be complete by the end of 2013 and to give Chesapeake 800 Mmcf/d of additional pipeline capacity.
2009 Year-end Results

Chesapeake's production at the end of the fourth quarter, 2009 (45 Mmcfe/d) represented a 26% increase from the third quarter of 2009. As of the end of the fourth quarter, Chesapeake had 56 company-owned horizontal wells in the Marcellus shale. The company was fielding 24 rigs.
2010 Development Timeline

As of February 16, 2010 Chesapeake had a record average net production from the Marcellus shale formation of approximately 65 Mmcfe/d. The number of rigs deployed was expected to grow from 24 at the end of 2009 to 32 during 2010 to drill 175 net wells.
Susquehanna County Joint Venture

In January, 2010 a press release surfaced regarding a planned joint venture between Chesapeake and Epsilon Energy regarding the latter's Highway 706 acreage and several producing Marcellus shale wells located roughly 8 miles southwest of the Borough of Montrose in Susquehanna County, PA. According to the agreement, Chesapeake was to earn a 50% interest in Epsilon's project assets in exchange for $5 million up front as well as a $95 million carry, spread over 30 months, for Epsilon's 50% of drilling and other expenses in the joint venture. Epsilon's leasehold consisted of 11,500 acres located in close proximity to acreage already controlled by Chesapeake. Epsilon's management estimated that at least 120 wells could successfully be drilled on the property. The existing wells there already produced in excess of 10 Mmcf/d. Update: The deal closed on February 1, 2010. All told, Chesapeake planned to invest $195 million in developing the Highway 706 Project. The $95 million carry requirement was to be met by by August 1, 2012.
West Viginia Northern Panhandle Leasehold

As of August, 2010 Chesapeake had in excess of 100,000 acres leased in West Virginia's northern panhandle including the aforementioned acreage in Wheeling's Oglebay Park.
Marshall Co., WV Leasing Activity

Chesapeake was in the news in June, 2010 when it offered to lease a 53 acre parcel from the City of Moundsville located along the Ohio River in the Wheeling, WV metro area. The terms offered were $2,800 an acre and 18.75% royalty. The company wanted to drill under the Valley Fork ball fields on 12th Street. The article mentioned that the City of Wheeling and the Marshall Co. school district had also recently signed leases. At the end of August, the city apparently turned down this offer and had proposed, as an alternative for leasing, a site located about 1 mile away from the ball fields.

Also in August, 2010, Chesapeake was reported clearing a drilling site near the town of Fish Creek, WV in Marshall Co. A few local residents had criticized this site as it was located in a potential flood plain. A company spokesman promised to contact them to address any concerns.
Well fire on Pleasants Ridge

In September, 2010 a Chesapeake well located on Pleasants Ridge close to the border of Wetzel and Marshall counties caught fire. West Virginia Department of Environmental Protection (WVDEP) reportedly cited Chesapeake, among other things, for an uncontrolled release of natural gas and shut down operation of the well site.
The Highlands

The company also had leased land near The Highlands development in neighboring Ohio County, WV. Signing bonuses for the leases had run between $750/acre to $3,600/acre with royalties ranging from 12.5% up to 18.75%. According to a September, 2010 news account, Chesapeake planned to drill private property on the south side of I-70, turn the well horizontally towards The Highlands on the north side of the freeway, and extract gas from under the county's land. It was to be known as the Gantzer well and scheduled for development in early 2011. Ohio County had leased its 2,180 acre parcel to Chesapeake for $3,600/acre and an 18.75% royalty on gas sold. The well was expected to have a total depth of approximately 8,000 feet before turning in a horizontal direction under I-70 and on to county land.
Wetzel Co. acquisition

Also, in September, 2010 the company was reported purchasing drilling rights to 22,000 acres in Wetzel County for $22 million ($1,000 per acre) from Ed Broome, owner of an oil and gas company in Glenville, WV. The land consisted of 250 separate parcels stretching from New Martinsville to Marion and Monongalia counties.
Wetzel Co. compressors

Chesapeake was in the news in October, 2010 when it obtain permits during September from DEP to install 18 compressor units in Wetzel Co. as part of the company's effort to deliver its Marcellus shale production to interstate pipelines and then on to market.
Bradford County Road Work

The company was in the news in late August, 2010 when it paid for upgrading two roads in Bradford County which had received excessive wear related to Marcellus drilling in the area. At the time of the article, work had already begun on Routes 1008 (Crow Hill Road) and 2017 (Marshview Road). Traffic was detoured from Crow Hill Rd. to Route 706, Turkey Path Rd. and Spring Hill Rd. while road work was underway. Crow Hill Road was to be rebuilt and resurfaced with black top all the way from Route 706 beginning in Camptown (Wyalusing Twp.) and extending 2.7 miles to Spring Hill Rd. in Tuscarora Twp. Similar work was to take places for 3.2 miles along Marshview Road going from the North St. intersection in Terry Twp. to the Liberty Corners Rd. intersection in Asylum Twp. Traffic was to be detoured to North St., Rt. 187, and Liberty Corners Rd. All work was scheduled for completion by October 26, 2010.
Spotlight Issues

* Water disposal issues became a key concern throughout the Marcellus shale play industry during the second half of 2009. While water remained very plentiful, the disposal of flowback water from hydraulic fracturing gas wells became the focus of much public debate. Chesapeake sought to avoid most of the controversy by placing its emphasis on frequent recycling and reuse of water from fracing operations.
* Chesapeake continued to ramp up its acquisition of 3-D seismic data with 70 square miles in its database. According to an October, 2009 update it was in the process of shooting 400 miles of 3-D seismic and planned to grow this total up to 900 square miles by the end of the first quarter of 2010.
* The July, 2009 Chesapeake operations update indicated a very high investment return on wells in the Marcellus shale--as estimated at a long run price of $7 for gas and $70 for oil. At 71%, it is more than twice the IRR for Chesapeake's Barnett shale wells. IRR, or "internal rate of return", is a measure often used for comparing rates of return on alternative investments.
* In the same report the company increased its estimated ultimately recoverable (EUR) gas from 3.75 to 4.2 Bcfe per Marcellus well and indicated that decline rates on their wells were lower than expected. This is in line with the experience reported by at least one other major company that has been extensively drilling the Marcellus shale formation. Chesapeake later advanced this in July, 2010 even further to 5.2 Bcfe per Marcellus well.

Executive contacts

* Aubrey McClendon is Chesapeake's Chairman, CEO and co-founder.
* Jeffrey A. Fisher is Senior Vice President—Production.
* Martha A. Burger is Senior Vice President for Human and Corporate Resources.
* Scott Rotruck is Vice President of Corporate Development and spokesman on Marcellus shale drilling.
* Yvonne E. Marciano is an Albany, NY-based attorney who represents Chesapeake Energy in New York State.
* Mike John is Vice President of Corporate Development for Chesapeake’s Eastern Division, headquartered in Charleston, West Virginia.
* Tom Layman is Vice President of Geoscience-Eastern Division.
* Dave Spigelmyer is Vice President of Government Relations for the Eastern Division
* Steve Turk is Vice President of Operations–Southern Division.
* Paul Hagemeier is Vice President of Regulatory Compliance.
* Bill Wince is Vice President of Transportation.
* B.J. Carney is a Senior Geophysicist-Appalachia.
* Matt Sheppard is Senior Director of Corporate Development.
* J. Kevin McCotter is Director of Corporate Development.
* Brian L. Grove is Director of Corporate Development in Chesapeake's northeastern Pennsylvania field office located in Towanda, Bradford County.
* Maribeth Anderson is one of Chesapeake's Corporate Development Manager.
* Stacey Brodak is also a Manager of Corporate Development.
* Dave McDougal is a Chesapeake representative in Allegheny County, PA.
* Tom Price, Jim Gipson, and Michael Brownell are Chesapeake spokesmen.

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From: jrhana10/9/2010 3:21:46 PM
   of 6158
 
Chesapeake doing more road work in Bradford Co., PA

waytogoto.com

Later in October another news article appeared that mentioned a contractor working for Chesapeake was in the process of upgrading 5.9 miles of Litchfield Road (state Route 1058) in Litchfield Township, also located in Bradford Co. The road was to be improved so it could handle heavy truck traffic. The repairs were to take place between the Front Street intersection on up to the New York State line. Traffic was to be detoured on to Front Street, Cottons Hollow Road (state Route 1056) and Macafee Road.

Note the above seems to be the only or at least the major difference with or revision to the Wiki article I just posted.

Message 26877340

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To: jrhana who wrote (3871)10/9/2010 3:43:27 PM
From: jrhana
1 Recommendation   of 6158
 
Well, it's back to reality for RFK, jr.

<Environmental activist Robert Kennedy, Jr., shocked drilling critics at a clean water conference here last week by saying it could be done with proper regulation.

"You need really strong regulations and you need a really tough, vigilant, aggressive, regulatory agency," Kennedy said.

A strong proponent of wind and solar energy, Kennedy acknowledges those sources will not meet America's shorter term energy needs and said natural gas is far cleaner than coal with less than half the carbon and without fly ash, acid mine run-off and mountain top mining.>

He had made some similar comments a year or two ago, but then had gone off the deep end with his environmentalist wacko buddies.

But praise the Lord he has come back to the realization that, as has been posted here, shale NG in the balance actually produces significantly less pollution as an energy source than just about whatever it is going to replace.

I remember posting some similar stuff from the National Sierra Club which brought it in conflict with some of the local activist (and once again wackoo) chapters.

Yes that's right once again NG frac drilling reduces the amount of overall pollution.

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