Engineers enhance value in a prolific gas/liquids province
View the DUG East Fact Sheet
The American oil and gas story is filled with examples of remarkable resilience. For decades, industry leaders have found innovative ways to lead their companies through commodity cycles and past technological limitations. After every challenge, the industry has emerged in a position of strength.
Today's Appalachian producers are no exception. It only took them four years to unlock one of the world's largest natural gas reservoirs. Since 2010, Marcellus natural gas production has grown from 2 Bcf/d to more than 16.5 Bcf/d and Utica production has increased 12-fold. The region now accounts for almost 20% of the natural gas production in the lower 48 U.S. states. And in the face of declining natural gas prices, producers have slashed breakeven costs in half by constantly evolving the technologies and strategies behind drilling and completions.
Innovation and collaboration are key to remaining successful in the prolific Marcellus and Utica formations. At DUG East, you'll connect with over 3,100 oil and gas professionals, 20+ executive-level speakers and over 320 exhibitors for two days of in-depth discussions on how to continue to improve operational efficiencies. Click here to learn more about why you can't afford to miss this essential industry gathering.
Day Rates For Midcontinent Premium Rigs Down 40% Spot market rig rates have fallen 40% for premium Tier I rigs in the Midcontinent and 36% on average for all other rig classes in concert with the collapse in drilling activity. Operators are only drilling to hold leases outside the Cana Woodford/Scoop play where rig count remains static. Roughly half of regional drilling activity is on a well-by-well basis with operators elsewhere finishing out contracted drilling programs and holding off on renewing contracts and activity. Spot market rates are anecdotal because of a lack of demand for drilling services. Contractors meanwhile are folding add ons, such as top drives, back into the day rate, further exasperating the steep decline in pricing. A few survey respondents indicated operators are looking towards late third quarter before venturing back into the market. Watch for the next Midcontinent land drilling survey in July 2015.
New Source Energy Partners’ Deal Hands Over E&P Power Larry E. Lee, who helped create the company that became Halcón Resources Corp. (NYSE: HK), is on the move again, buying Permian Basin assets and, more recently, interest in the general partner of an MLP.
Through the deal, Lee would be able to acquire control of the E&P activities of New Source Energy Partners LP (NYSE: NSLP) if certain conditions are met, including the purchase of some of Lee’s oil and gas assets. The transaction is another sign that E&P MLPs may be struggling more than their publically traded cousins in the downturn.
New Source said April 27 that Lee’s 2100 Energy LLC acquired an 18.4% interest in New Source Energy GP LLC. The interest was purchased from Kristian B. Kos, New Source’s chairman and CEO. New Source is an Oklahoma City company with conventional resource reservoirs in east-central Oklahoma and oilfield services that specialize in increasing efficiencies and safety in drilling and completion processes.