Methanex, Chesapeake strike natural-gas deal
Methanex Corp. and Chesapeake Energy Corp. have announced the execution of a 10-year agreement to supply all the natural gas required for Methanex’s 1 million metric-ton-per-year methanol plant in Geismar, La. Commencement of natural-gas deliveries will coincide with the startup of the plant, which is expected by the end of 2014.
Methanex is a Vancouver-based company and is the world’s largest supplier of methanol to major international markets.
Consol maintains low costs of development
Consol Energy Inc. announced it added 954 Bcfe — or billions of cubic feet equivalent — of proved reserves through extensions and discoveries. The measurement represents the total heat value of natural gas and oil expressed as a volume of natural gas.
The company’s estimate of drilling and completion costs incurred during 2012 directly attributable to extensions and discoveries was $440.7 million. When divided by the extensions and discoveries of 954 Bcfe, this yields a drill-bit finding and development cost of $0.46 per Mcfe. This is the third-consecutive year that Consol Energy has achieved sub-$0.50 per Mcfe drill-bit finding and development costs. The company believes this is among the lowest in the industry.
Triad Hunter opening features CEO Evans
Gary Evans, chairman and CEO of Magnum Hunter, recently was in Marietta, Ohio, for the grand opening of the new regional office building for Magnum’s Marcellus and Utica Shale subsidiary Triad Hunter. Triad has thus far leased 85,500 acres in the Marcellus Shale and 81,800 acres in the Utica Shale.
The new office is located centrally to both the Marcellus and Utica plays — together referred to as Appalachia. Triad spent $1 million to remodel a downtown Marietta building that will be its Marcellus/Utica regional headquarters. So far, more than 40 Triad employees have moved in. Magnum Hunter, through subsidiaries including Triad Hunter, Alpha Hunter, Eureka Hunter, Green Hunter Water and Viking International Resources has its fingers in a lot of different pieces of the drilling pie. Evans said their commitment to Appalachia is long-term.
BP announces lower earnings for 2012
BP announced its financial results for the fourth quarter and full year of 2012. Overall profit, adjusted for nonoperating items and fair-value accounting effects, was $4 billion for the fourth quarter, compared with $5 billion for the same period in 2011. For the full year, profit was $17.6 billion, compared with $21.7 billion in 2011. “We have moved past many milestones in 2012, repositioning BP through divestments and bringing on new projects. This lays a solid foundation for growth into the long term,” said Bob Dudley, BP Group chief executive.