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Magnum dry well begins production
Magnum Hunter Resources Corporation announced that its first dry-gas well in the Utica Shale has begun producing at a peak production rate of 32.5 million cubic feet of natural gas per day.
The Stalder #3UH well, located on the Stalder Pad in Monroe County, began production in mid-February. It has a vertical depth of 10,653 feet, with a 5,050- foot horizontal lateral.
Triad Hunter LLC, a wholly owned subsidiary of Magnum Hunter is operating the well with a 47 percent working interest. Other operators include Eclipse Resources, Statoil and Northwood Energy Corporation.
Consol Energy Inc. to supply cracker plant
Consol Energy Inc. announced that it plans to supply European cracker facilities with ethane from Western Pennsylvania’s Marcellus Shale.
Consol entered the agreement last month with Ineos Europe AG, part of the Ineos Group, to export ethane via Sunoco Logistic’s Mainer East pipelines to the Marcus Hook Delaware River port. It will then be shipped oversees for use in Ineos’s European cracker plants.
Before that announcement, Consol said it had entered an agreement with Royal Dutch Shell to supply ethane to its planned cracker facility in Beaver County.
Commission: Pipeline would pose little threat
The Federal Energy Regulatory Commission announced that a Cabot Oil & Gas Corp. and Williams Partners LP pipeline project stretching from Pennsylvania to New York would have little environmental impact if the proper steps are taken.
The nearly 125-mile Constitution Pipeline and a related compressor transfer station could pose a less-than-significant threat to the environment, as long as the projects follow applicable laws and regulations, the FERC found.
The process for building the Constitution Pipeline is now more than two years old, and Williams Partners anticipates it will be online in 2015, according to the company’s website.
The public will have until April 7 to weigh in on the findings.
Rice acquires assets
Rice Energy Inc. announced that its subsidiary, Rice Poseidon Midstream LLC, will purchase $110 million in gathering assets in eastern Washington and Green counties in Pennsylvania from M3 Appalachia Gathering LLC, a wholly owned subsidiary of M3 Midstream LLC.
The assets include a 28-mile pipeline system and permits and rights of way in Washington and Green counties in order to build an 18-mile gathering system to connect to the Texas Eastern pipeline.
Once complete, the company expects the systems to have a combined capacity to handle more than 1 billion cubic feet per day.
Gulport to buy land from Windsor Ohio
Oklahoma-based Gulfport Energy will buy 22,000 acres in eastern Ohio’s Utica Shale from the Wexford Capital LP affiliate Windsor Ohio LLC for $220 million.
The agreement brings Gulfport’s leasehold interests in the Utica Shale to 137,000 gross acres, or 128,000 net acres.
It does not include Windsor Ohio’s interest in 14 existing wells and 16 proposed future wells.
NiSource Inc. announced net operating earnings from continuing income of $493.9 million for the full year 2013, compared with $425.8 million the previous year.
Fourth-quarter income was $151.8 million, compared with $134 million during the same period in 2012, the company announced Feb. 18.
Earnings across all three of NiSource’s major segments increased for the year, as well.