August 14th 2017: Working-rig counts falls for 2nd ...
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Top Headlines
Working-rig counts falls for 2nd time in 4 weeks
Industry bankruptcy filings down markedly from one year ago 🔓
OPEC output climbed 173,000 BPD in July 🔓
B.C. provincial government may delay Trans Mountain line
FERC set to resume open meetings on Sept. 20
US crude posts second straight weekly loss
North America
Keystone XL hearing ends with foes, backers still divided
Carrizo closes $648M deal for Delaware Basin assets
Holly Energy acquiring remaining interests in Frontier, SLC lines
PennEast requests expedited approval of its 120-mile line
Plan for gas line under Potomac draws protest
Fourchon LNG begins permitting process for export facility
Texas drilling permits jump 60.2% in July from year earlier 🔓
North Dakota oil production slips roughly 1% in June
Maine pipeline says could ship 100,000 BPD of crude
BLM schedules Dec. 14 oil, gas lease sales in Wyoming
Pennsylvania conducts hearing on Atlantic Sunrise air permits
Working gas in storage up less than 1%: EIA
North Dakota liquids boost Enerplus in Q2
Ranger Energy Services prices IPO
Commodity Prices (USD)
WTI Crude Oil 48.82 -0.47%
Brent Crude Oil 52.10 +0.38%
Natural Gas 2.98 -
Heating Oil 1.63 -
Gasoline 1.61 +0.63%
FX Rates - Aug 14 2017
USD/MXN 17.816700 -0.0106
USD/EUR 0.846141 +0.0001
USD/GBP 0.768791 +0.0003
USD/CNY 6.665550 +0.0008
USD/AED 3.673014 -0.0
Working-rig counts falls for 2nd time in 4 weeks
August 14th, 2017  |  Read online

For just the second time since mid-January – but the second time in four weeks – the number of rigs working onshore last week in the Lower 48 U.S. states fell, oilfield services firm Baker Hughes, a GE company, reported.

For the week ended Aug. 11, 923 rigs were working onshore, down six rigs from the previous week. Despite the six-rig drop, the latest working-rig count was up 466 rigs from the 457 rigs working during the week ended Aug. 12, 2016, Kallanish Energy calculates.

Looking at individual drilling areas, five areas reported a week-to-week increase in rigs, another five reported a week-to-week drop inn working rigs, and 21 drilling areas reported no change.

The big “loser” last week – a rare occasion – was Texas, which fell by seven rigs, to 459 from 466 one week earlier.

This is the largest drop in working rigs in the “Lone Star State” since mid-May 2016, when Texas also lost seven working rigs.

No state gained more than a single rig last week, Baker Hughes found.

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Industry bankruptcy filings down markedly from one year ago 🔓
August 14th, 2017  |  Read online

Fourteen North American oil and gas exploration and production companies filed for bankruptcy protection in the first half of 2017 — down from 50 in the first six months of 2016, according to Dallas-based law firm Haynes & Boone.

The cases filed this year included roughly a combined $5.09 billion in debt. All told, 128 U.S. and Canadian exploration and production companies have carried some $79.27 billion in debt into bankruptcy court since Jan. 1, 2015.

E&P bankruptcy filings have continued to dwindle over the summer. While five E&P companies with cumulative debt of $77 million filed for bankruptcy in June, there were no E&P company bankruptcy filings during the months of May or July, according to Haynes & Boone.

“Many companies that needed to restructure either have gone through bankruptcy or reached out-of-court settlements with creditors,” said Ian Peck, a partner at Haynes & Boone, in a statement.

And it appears producers have adjusted to oil prices hovering between $45 and $55 a barrel. But that resiliency may not last forever, he said, adding bankruptcy cases may increase again in coming months.

“Despite the industry’s new stability at this price point, a prolonged pricing trough may ultimately be too difficult for some players to bear,” Peck said. Some companies, he said, may have to go through bankruptcy proceedings a second time.

Meanwhile, 33 oilfield services companies have filed bankruptcy papers from January through June of this year, down from 40 in the first half of 2016. The cases filed this year involved $16.40 billion in debt, Kallanish Energy calculates.

Four midstream companies have through June filed for bankruptcy this year, carrying more than $3 billion in debt into court. One year ago over the same six months, nine midstreamers field for bankruptcy, with debt totaling roughly 12.68 billion.

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OPEC output climbed 173,000 BPD in July 🔓
August 14th, 2017  |  Read online

Total crude oil production from the Organization of Petroleum Exporting Countries increased 173,000 barrels per day (BPD) in July from June, to average 32.87 million barrels per day (MMBPD), according to secondary sources used in the cartel’s August Monthly Oil Market Report.

Preliminary data indicate global oil supply increased 170,000 BPD in July from June, to average 97.3 MMBPD.

Libya output gained 154,000 BPD from June, to roughly 1 MMBPD. Nigeria rose 34,300 BPD, to 1.75 MMBPD. Both countries are exempt from the deal by OPEC and certain non-OPEC members to curb output, although Nigeria recently agreed to cap its output at 1.8 MMBPD.

Saudi Arabia, the leader of the output curtailment deal, lifted its output by 31,800 BPD from June, to 10.07 MMBPD.

OPEC said non-OPEC supply rose 520,000 BPD in July from June, to average 64.49 MMBPD, primarily driven by the 310,000 BPD increase in the U.S, Kallanish Energy calculates.

OPEC revised down forecast non-OPEC oil supply growth for 2017 by 28,000 BPD, to 780,000 BP, representing total non-OPEC supply of 57.77 MMBPD.

The main reason for this downward revision was a lower assessment of oil supply in OECD America following weak output in Q2 2017.

Global oil demand is projected to average 96.49 MMBPD this year, with demand growth expected at 1.37 MMBPD following an upward revision of 100,000 BPD primarily due to better-than-expected second-quarter data from regions in the Organization for Economic Cooperation and Development (OECD), OPEC said.

Total oil consumption is anticipated to set a record high of 97.77 MMBPD in 2018, up 0.44 MMBPD from 2017’s average, a 2.54% increase.

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B.C. provincial government may delay Trans Mountain line
August 14th, 2017  |  Read online

Kinder Morgan’s $7.4 billion Trans Mountain oil pipeline expansion has run into a new obstacle: the British Columbia provincial government, Kallanish Energy understands.

It announced last week it will not allow Kinder Morgan to begin construction on public lands until it has had “meaningful discussions” with aboriginal communities along the pipeline route.

British Columbia Environment Minister George Heyman told the media in Vancouver that B.C. has rejected five of eight plans to mitigate environmental impacts because they did not adequately include aboriginal consultation.

He said it is unlikely Kinder Morgan can begin work on public lands by its September construction target. He also said the province intends to join in court fights against federal approval of the pipeline.

Kinder Morgan, in a statement, said it takes the province’s comments seriously and remains willing to meet provincial officials.

The company has “undertaken thorough, extensive and meaningful consultations with aboriginal peoples, communities and individuals and (we) remain dedicated to those efforts and relationships as we move forward with construction activities in September,” said Ian Anderson, president of Kinder Morgan Canada, in a statement.

The company said the B.C. announcement will not affect its timeline for pipeline construction.

In late 2016, the project won federal approval, but a new, left-leaning provincial government took office in June. That raised doubts about the pipeline project, although the parties have recently scaled back criticism.

The pipeline expansion would run 715 miles from Edmonton, Alberta, to Barnaby, B.C., near Vancouver.

The current oil pipeline transports about 300,000 barrels per day (BPD). The new line will be built parallel to the existing line for crude and refined oil. The expansion would nearly triple capacity, to 890,000 BPD.

The new pipeline to move crude from Canada’s tar sands is scheduled to begin service in late 2019.

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FERC set to resume open meetings on Sept. 20
August 14th, 2017  |  Read online

Faced with a backlog of projects, the Federal Energy Regulatory Commission will resume open meetings on Sept. 20, Kallanish Energy reports.

That announcement came late Thursday from new FERC acting chairman Neil Chatterjee.

With a quorum finally restored, the commission will begin voting notationally on the orders that have been on hold since early February when FERC lost its quorum, he said, in a statement.

The Sept. 20 meeting will be at 10 a.m. in the Commission Meeting Room at FERC’s headquarters in Washington, D.C.

Without a quorum, FERC staff has been acting under limited delegated authority under federal rules. That delegation period that began Feb. 4 ends 14 days from Aug. 10 when the quorum is re-established.

Chatterjee of Kentucky and Robert Powelson of Pennsylvania were sworn in last week as FERC commissioners. The nominations of two additional commissioners, Kevin McIntyre and Rich Glick, are pending in the U.S. Senate. The fifth commissioner is Cheryl LaFleur.

President Trump has nominated McIntyre to be the FERC chairman.

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US crude posts second straight weekly loss
August 14th, 2017  |  Read online

Oil prices moved slightly higher Friday, but posted another weekly decline after the International Energy Agency said market rebalancing was taking time due to weak OPEC compliance with output cuts.

Brent crude was up 10 cents, at $52 per barrel by 2:37 p.m. ET (1837 GMT). On Thursday, the contract touched an 11-week high at $53.64/Bbl.

U.S. West Texas Intermediate (WTI) crude ended Friday’s trade up 23 cents, at $48.82/Bbl, after falling to a 2½-week low of $48.01/Bbl earlier in the session, Reuters reported.

The contract fell 1.5% last week, its second straight weekly decline, as doubts remain the world will consume enough crude to end a global glut, Kallanish Energy understands.

“There would be more confidence that re-balancing is here to stay if some producers party to the output agreements were not, just as they are gaining the upper hand, showing signs of weakening their resolve,” the IEA said in its monthly report.

The IEA said OPEC’s compliance with the cuts in July had fallen to 75% — the lowest since the cuts began in January. It cited weak compliance by Algeria, Iraq and the United Arab Emirates (UAE).

Russian oil producer Gazprom Neft is considering resuming production in mature fields after the OPEC-led production cut agreement, a representative of the company said Thursday, Reuters reported.

Saudi Arabian Energy Minister Khalid al-Falih said the kingdom did not rule out additional oil production cuts, the Saudi-owned Al Sharq Al Awsat newspaper reported Friday.

“Crude oil prices failed to hold recent gains, with a nervous market starting to doubt recent falls in inventories,” ANZ bank said, in a research note. “Supply-side issues also weighed on prices.”

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Keystone XL hearing ends with foes, backers still divided
August 14th, 2017  |  Read online

Nebraska’s hearing over the proposed Keystone XL pipeline ended Thursday as it began, with opposing sides disputing the benefits and beneficiaries of the controversial project, Kallanish Energy learns.

After four days of testimony, and the submittal of an estimated 20,000 pages of documents and written testimony, an official with TransCanada, the pipeline giant hoping to build the $8 billion project, said it’s been shown the crude oil line is in Nebraska’s best interests.

“This is the most-studied cross-border pipeline in history,” said Matthew John, a spokesman for the Calgary-based company, the Omaha (Neb.) World-Herald newspaper reported.

But a group of roughly 40 Nebraska landowners cheered as the founder of the anti-pipeline group Bold Nebraska pledged to fight the pipeline all the way to the U.S. Supreme Court.

Jane Kleeb said allowing a private, foreign corporation to use eminent domain to force rights-of-way agreements from ranchers and farmers is wrong.

“We think this widens the door to erode property rights in this country,” Kleeb said, calling the project a foreign pipeline that would use foreign-made steel to transport oil designated for foreign markets, the World-Herald reported.

Kleeb also said that if construction on the pipeline begins, opponents will employ “creative” civil disobedience measures that would make the massive protests last year over the Dakota Access pipeline in North Dakota look like a “dress rehearsal.”

The 36-inch Keystone XL, first proposed in 2008, is designed to carry 830,000 barrels a day (BPD) of heavy, tar sands crude oil from Alberta to Steele City, Neb., interconnecting with another line and eventually flowing crude to oil refineries on the U.S. Gulf Coast.

TransCanada executives have said the company will make a final decision by December on whether the project is financially feasible after seeing if more oil producers will sign 20-year contracts to use the XL.

The five members of the Nebraska Public Service Commission have until Nov. 23 to decide on the line.

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Carrizo closes $648M deal for Delaware Basin assets
August 14th, 2017  |  Read online

Carrizo Oil & Gas said Friday it completed transactions with ExL Petroleum Management and ExL Petroleum Operating for roughly 16,508 net acres in the Delaware Basin in Texas’ Reeves and Ward counties, for approximately $648 million in cash.

The Houston-based independent producer also agreed to pay an additional $50 million annually if the average daily closing spot West Texas Intermediate (WTI) crude oil price as measured by the Energy Information Administration is above $50 a barrel for any of the calendar years 2018 through 2021.

The assets are currently producing roughly 9,500 barrels of oil-equivalent per day (BOE/d) (48% oil, 67% liquids) from 14 gross wells, Kallanish Energy learns.

Of the five rigs currently operating on the ExL assets, four are expected to be released after their current well. Carrizo has contracted for two newer-vintage rigs to work the acreage, with the first scheduled to arrive later this month.

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Holly Energy acquiring remaining interests in Frontier, SLC lines
August 14th, 2017  |  Read online

Pipeline/terminal operator Holly Energy Partners last week said it’s acquiring a 50% interest in Frontier Aspen, owner of the Frontier Aspen Pipeline, and a 75% interest in SLC Pipeline, owner of the Salt Lake City Pipeline, from affiliates of Plains All American Pipeline for $250 million in cash.

Once the deals are consummated, Holly will own 100% of both Frontier and SLC, and the two companies SLC will become wholly-owned subsidiaries of Holly, Kallanish Energy understands.

The Frontier Aspen Pipeline is a 289-mile pipeline from Casper, Wyo., to Frontier Station, Utah, that supplies Canadian and Rocky Mountain crudes to Salt Lake City area refiners through a connection to the SLC Pipeline.

The Salt Lake City Pipeline is a 95-mile line that transports crude into the Salt Lake City area from the Utah terminal of the Frontier Pipeline and from Wasatch station.

The acquired interest in both pipelines is expected to generate roughly $23 million in annual forecasted EBITDA (earnings before interest, taxes, depreciation and amortization).

Dallas-based Holly said it expects to finance the transaction with a combination of debt and equity, subject to market conditions and other factors.

In addition, the general partner of Holly Energy has agreed to waive its incentive distribution rights for a period of three years following the closing of the acquisitions on any new units issued in connection with the financing of the acquisitions. Holly anticipates the deals will be immediately accretive to its unitholders.

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PennEast requests expedited approval of its 120-mile line
August 14th, 2017  |  Read online

PennEast Pipeline Co. officials have requested the Federal Energy Regulatory Commission expedite final approval of the company’s 120-mile pipeline since the commission again has a quorum after a six-month wait.

In a letter sent to FERC Thursday, PennEast Board of Managers chairman Dat Tran cited the needs of the 12 utility companies — ie., shippers — under contract to purchase 90% of the gas transported by the pipeline, the Allentown (Pa.) Call newspaper reported.

The letter touts the economic benefits of the roughly $1 billion, 1 billion cubic feet per day capacity line, such as reduced natural gas prices and the creation of jobs and tax revenue, the Call reported.

PennEast spokeswoman Patricia Kornick told the Call Friday the pipeline company hopes to have the project completed by the second-half of 2018. It was first proposed in 2014.

The New Jersey Sierra Club quickly opposed PennEast’s latest request, calling it “outrageous” and sending a letter Friday to FERC asking the commission to reject it, Kallanish Energy learns.

“FERC must deny PennEast’s ridiculous request to speed up the approval process and instead consider their application deficient,” wrote Jeff Tittel, director of the New Jersey Sierra Club, the Call reported. “PennEast has not been able to prove they can get the necessary permits for construction and operation,” he said, referring to Pennsylvania Department of Environmental Protection permits that will be necessary, even with FERC approval, for construction to begin.

The New Jersey Department of Environmental Protection has yet to approve PennEast’s application for permits to construct in wetlands and across waterways.

PennEast would transport natural gas from the Marcellus Shale play region in northeast Pennsylvania to markets in New Jersey, Pennsylvania, New York and adjacent states.

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Plan for gas line under Potomac draws protest
August 14th, 2017  |  Read online

A proposed 3.5-mile underground natural gas pipeline crossing below the Potomac River in Western Maryland would link Marcellus Shlae gas in Pennsylvania and manufacturers in West Virginia’s Eastern Panhandle, proponents say.

But opponents are calling on Gov. Larry Hogan and the Maryland Department of the Environment to reject the project because it would carry gas produced by hydraulic fracturing, banned by Maryland lawmakers, while also threatening a river that provides drinking water to millions.

“It does pose a serious threat to drinking water,” Denise Robbins, spokeswoman for the Chesapeake Climate Action Network, told the Baltimore Sun newspaper. “This pipeline and fracked gas pipelines in general are becoming the new threat to this country.”

Maryland Environment Secretary Ben Grumbles said in a statement state officials are “taking a hard look” at the proposal, which would run a pipeline underground across the narrowest part of the state near Hancock and under the Potomac River to Berkeley Springs, W.Va.

TransCanada, the Calgary-based natural gas pipeline giant behind the Maryland project, has more than a century of experience building pipelines in the area, spokesman Scott Castleman told the Sun.

The pipeline’s construction will be vital to the economy in eastern West Virginia, which has no underground natural gas reserves of its own, said H. Wood “Woody” Thrasher, that state’s Secretary of Commerce.

“The TransCanada pipeline is fundamental for the economic future of the eastern panhandle of West Virginia,” Thrasher said, in a statement.

The region’s existing pipeline system is limited and “basically out of capacity,” John Reisenweber, executive director of the Jefferson County Development Authority in West Virginia, told the Sun.

“We definitely have lost out on investment opportunities for companies that need natural gas,” he said. “If we can’t check that box on the list of infrastructure a company needs, we’re not going to be able to compete.”

The Federal Energy Regulatory Commission is set to rule on the project in January, Kallanish Energy understands.

If the project receives all necessary approvals, TransCanada expects to begin construction next April.

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Fourchon LNG begins permitting process for export facility
August 14th, 2017  |  Read online

Fourchon LNG last week began the federal permitting process for a proposed 5 million-metric-tonne annually (MTPA), $888 million, liquefied natural gas export facility at Port Fourchon, La. 

Phase 1 of the project will produce 2 MTPA of LNG, the Baton Rouge (La.) Advocate newspaper reported. Phase 2 will increase export capacity to 5 MTPA.

Fourchon LNG also plans to reserve up to 500,000 metric tonnes of LNG annually for domestic use, which the company said it hopes will fuel the next generation of offshore supply vessels operating in the Gulf of Mexico.

The Fourchon LNG facility is to be constructed on the southern tip of Lafourche Parish, on the Gulf of Mexico, on a site of up to 150 acres located on port-owned property outside of the port's existing developments.

Fourchon LNG is a newly established company owned by Hong Kong energy provider Energy World, and is part of the Energy World International Ltd. group of companies.

EWI develops, builds and operates property investment, infrastructure, power generation and energy-related projects, Kallanish Energy finds. 

"We welcome this critical milestone for the Fourchon LNG project by our tenant Energy World, and we are excited to have the opportunity to add their proposed facility and its services to Fourchon's diverse and extensive list of offerings," said Chett Chiasson, executive director of the Greater Lafourche Port Commission, the Advocate reported. 

Fourchon LNG filed its formal letter to request initiation of the prefiling review process with the Federal Energy Regulatory Commission. Once the prefiling process is complete, Fourchon LNG plans to ask FERC for permission to build the facility.

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Texas drilling permits jump 60.2% in July from year earlier 🔓
August 14th, 2017  |  Read online

The Railroad Commission of Texas issued a total of 1,011 original drilling permits in July, up from 631 permits in July 2016, a 60.2% jump, Kallanish Energy learns.

The July 2017 total included 893 permits to drill new oil or gas wells, 10 to re-enter plugged well bores and 108 for recompletions of existing well bores.

The breakdown for those permits included 273 oil, 77 gas, 601 oil or gas, 53 injection and seven other permits, said the commission, which oversees oil and gas drilling in Texas.

In July, the commission processed 437 oil, 50 gas, 27 injection and two other completions. That compares to 566 oil, 243 gas, 44 injection and one other completion in July 2016.

Total 2017 well completions, to date, are 4,388, down from 7,285 recorded completions in the same period in 2016, the commission said, a 39.7% drop.

The top areas for permits to drill were around Midland, 482, and San Antonio, 120, Third was San Angelo area, with 82.

For oil completions, the Midland area was No. 1 with 225, followed by the San Angelo area with 58 and the San Antonio area with 54.

For natural gas completions, the Lubbock area was No. 1 with 28, followed by the San Antonio area with 12 and Southeast Texas with 11.

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North Dakota oil production slips roughly 1% in June
August 14th, 2017  |  Read online

North Dakota's crude oil output slipped roughly 1% in June, but should remain above 1 million barrels per day (MMBPD) for the foreseeable future, state officials said Friday.

The No. 2 U.S. oil-producing state, has largely taken a back seat in the past year as companies in the Permian Basin of Texas and New Mexico — the largest U.S. oil play — battles the Organization of the Petroleum Exporting Countries for global energy market dominance.

"That's two elephants fighting it out and North Dakota gets caught in the middle," Lynn Helms, head of the North Dakota Department of Mineral Resources (DMR), said on a Friday conference call, Reuters reported.

The state pumped 1.03 MMBPD in June, down from 1.04 MMBPD in May, according to the DMR, which reports on a two-month lag, Kallanish Energy reports.

"We should be staying in that 1 MMBPD to 1.05 MMBPD range for the foreseeable future," Helms said.

Natural gas production dipped slightly, to 1.85 million cubic feet per day (MMcf/d).

The state's oil well count hit 13,915 during the month, an all-time high, Reuters reported.

Even as the rig count climbs, the state's oil industry has been hydraulically fracturing (fracking) fewer wells due to a labor shortage. There are only 25 frack crews in the state today, less than half the number of rigs. Many of the state's oil industry workers left last year as oil prices plunged, forcing thousands of layoffs, Reuters reported.

As the industry ramps up, oilfield service companies Halliburton, Baker Hughes and Schlumberger are finding it difficult to get new workers the experience they need, with many oil producers unhappy with the quality of their work, Helms said.

"The oilfield service providers are training people, but the operators are not happy with the performance of inexperienced crews," he said, Reuters reported. "It's been a struggle."

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Maine pipeline says could ship 100,000 BPD of crude
August 14th, 2017  |  Read online

The president of the company behind a proposed crude oil pipeline in Maine says the line could flow 100,000 barrels per day (BPD) of crude if allowed to reverse the pipeline’s flow.

The Portland Press Herald newspaper reported the Portland Pipe Line Corp. disclosed how much oil it could transport from Canada for the first time since the company  filed a federal lawsuit against South Portland, Maine, in 2015.

Their lawsuit is challenging the city’s Clear Skies ordinance, which bans the loading of crude into tankers on the South Portland waterfront, Kallanish Energy understands.

Attorneys for the city fought to dismiss the new information from pipeline President Thomas Hardison. A judge ruled against their motion last week, saying Hardison concluded there is “sufficient volume available” to support the flow reversal project, the Press Herald reported.

South Portland-based Portland Pipe Line operates a system of pump stations and crude oil lines from Maine to Quebec. The company’s pipelines deliver crude oil directly to a refinery in Montreal, Quebec; and through connections with other pipelines in Montreal, the system provides crude to other refineries in Ontario.

The 76-year-old Portland Pipe Line also has a tanker unloading facility and tank farms in South Portland and Montreal, Canada. Portland Pipe Line is a subsidiary of Montreal Pipe Line Ltd.

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BLM schedules Dec. 14 oil, gas lease sales in Wyoming
August 14th, 2017  |  Read online

The federal Bureau of Land Management will offer oil and natural gas lease sales on nearly 73,000 acres in Wyoming on Dec. 14, Kallanish Energy reports.

A total of 45 parcels in the agency’s High Desert District will be offered in the quarterly lease sale at Bidding begins at 8 a.m. Mountain Standard Time.

Offered will be three parcels in Laramie County, seven parcels in Sweetwater County, four parcels in Uinta County and 31 parcels in Lincoln County.

Information on the Wyoming offerings are available at

The state of Wyoming gets 50% of the proceeds from each lease sale.

In fiscal year 2016, the state got more than $664 million from royalties, lease sales and other income from federal minerals, including oil and natural gas.

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Pennsylvania conducts hearing on Atlantic Sunrise air permits
August 14th, 2017  |  Read online

The Pennsylvania Department of Environmental Protection is holding a public hearing on an air permit for the Atlantic Sunrise natural gas pipeline from 6:30 to 9:30 tonight, at the Lancaster Farm and Home Center, in Lancaster, Kallanish Energy reports.

The state is accepting comments on air emissions from pipeline construction activities in Lancaster County through Aug. 21

No decisions have been reached on permits for the pipeline. The project will require Emission Reduction Credits to cover 106 tons of nitrogen oxide from pipeline construction. The credits will be sourced from a resource recovery facility in Harford County, Md.

The air plan is available at

The 197.7-mile pipeline will carry Marcellus Shale natural gas to market, including to Maryland and Dominion Energy’s Cove Point liquefied natural gas export facility.

The $3 billion under-construction pipeline is being developed by Houston-based Transcontinental Gas Pipe Line, a Williams’ subsidiary.

Full service on the pipeline is unlikely until 2018, but the company hopes to begin partial service in late 2017. The pipeline would move roughly 1.7 billion cubic feet per day of natural gas.

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Working gas in storage up less than 1%: EIA
August 14th, 2017  |  Read online

The volume of working natural gas in storage in the Lower 48 U.S. States rose by less than 1% during the week ended Aug. 4, from the previous week, the Energy Information Administration reported last week.

At Aug. 4, total working gas in storage was 3.04 trillion cubic feet (Tcf), up 28 billion cubic feet (Bcf) from 3.01 Tcf the previous week.

The latest total was down 275 Bcf, or 8.3%, from the year-ago total of 3.31 Tcf, but was up 61 Bcf, or 2.0%, from the five-year average of 2.98 Tcf, Kallanish Energy calculates.

Three of the five drilling regions recorded a week-to-week increase in working gas in storage, EIA found.

The biggest week-to-week increase was in the East Region, up 22 Bcf, or 3.4%, to 673 Bcf, from 651 Bcf for the week ended July 28.

The latest East Region total was down 71 Bcf, or 9.5%, from the year-ago total of 744 Bcf, and was down 25 Bcf, or 3.6% from the five-year average of 698 Bcf.

The South Central Region recorded the largest week-to-week drop inn working gas stored, down 9 Bcf, or 0.8%, to 1.10 Tcf, from 1.11 Tcf.

The latest South Central total was down 95 cf, or 7.9%, from the year-ago total of 1.20 Tcf, but was up 83 Bcf, or 8.1%, from the five-year average of 1.02 Tcf, EIA found.

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North Dakota liquids boost Enerplus in Q2
August 14th, 2017  |  Read online

Calgary-based Enerplus reported second quarter net income of $129.3 million, compared to a net loss in the year-ago quarter of $168.6 million, Kallanish Energy reports.

The company reported Q2 production averaged 86,209 barrels of oil-equivalent per day (BOE/d), including 40,944 Bbl of crude oil and natural gas liquids.

Liquids production increased to 48% of total company production, growing 13% from Q1 2017. It produced 41,000 BPD.

That was driven largely by strong North Dakota and Montana volumes from the Bakken Shale, the company said.

The company said operations in North Dakota have been “trending ahead of schedule.” North Dakota production in Q2 was 28,047 BOE/d, a 35% increase from the previous quarter, Enerplus said.

Williston Basin production averaged 32,240 BOE/d (90% liquids) in Q2 2017. That is a 29% increase from the prior quarter, the company said. That was 28,047 BOE/d from North Dakota and 4,193 BOE/d from Montana.

The company has raised its 2017 annual average production guidance range to 84,000 BOE/d to 86,000 BOE/d, from 81,000 BOE/d to 85,000 BOE/d.

It also increased its 2017 annual average liquids guidance to 39,500 BPD to 41,500 BPD, from 38,500 BPD to 41,500 BPD.

Enerplus spent $101.7 million in Q2 on exploration and development. That included $70.7 million in North Dakota, $9.9 million in the Canadian waterfloods and $17.5 million in the Marcellus Shale.

The company brought on-stream 14 gross (11.1 net) wells in Q2, mostly in the Williston Basin.

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Ranger Energy Services prices IPO
August 14th, 2017  |  Read online

Well service rig provider Ranger Energy Services last week priced its initial public offering of 5.86 million shares of its Class A common stock at $14.50 per share, which would raise $84 million.

The shares now trade on the New York Stock Exchange under the ticker symbol “RNGR”, Kallanish Energy reports.

The Houston-based company granted the offering’s underwriters a 30-day option to purchase up to an additional 879,310 shares of Ranger’s Class A common at the IPO price.

Ranger intends to contribute all of the roughly $75.2 million of net proceeds, or $87.1 million if the underwriters exercise their option from this offering to its RNGR Energy Services LLC unit.

In exchange for said contribution, Ranger LLC will issue limited liability company units to Ranger Inc. Ranger LLC intends to use such net proceeds to repay amounts outstanding under its debt agreements, pay cash bonuses to certain employees, fund the remaining cash portion of the consideration for the acquisition of substantially all of ESCO Leasing’s assets and certain of its liabilities, and for general corporate purposes.

Credit Suisse, Simmons & Company International, Energy Specialists of Piper Jaffray and Wells Fargo Securities are acting as the lead book-running managers for the offering.

The offering is expected to close on Aug. 16.

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