Gulfport Energy buying Paloma Partners III
Gulfport Energy Corp., Oklahoma City, agreed to acquire Paloma Partners III LLC, Houston, for $300 million in a transaction that will boost Gulfport's Utica shale holdings.
Paloma holds 24,000 net nonproducing acres in the Utica's dry gas window in the Ohio counties of Belmont and Jefferson. Following closing, expected in the third quarter, Gulfport's core Utica holdings would total 212,000 gross acres (208,000 net).
Paloma Partners III is funded by EnCap Investments LP and a subsidiary of Macquarie Group.
Gulfport also recently signed additional firm gas transportation agreements with Rockies Express Pipeline (REX) and Texas Gas Transmission (TGT).
The company's agreement with REX provides transportation for an additional 50,000 MMbtu/d beginning in mid-2016 for 15 years. Gulfport's agreement with TGT provides transportation for an incremental 54,000 MMbtu/d beginning in April 2017 for 15 years. Gulfport says it has total firm commitments covering 900,000 MMbtu/d of gas production by yearend 2016.
PTTGC considers Ohio for ethane cracker
Thailand's PTT Global Chemical (PTTGC) and Marubeni Corp. of Japan confirmed a site in Belmont County, Ohio, was the finalist for possible construction of an ethane cracker that would process natural gas from the Utica and Marcellus shale plays.
The specific site is a former FirstEnergy power plant in Mead township. Previously, Belmont County was considered for a Royal Dutch Shell PLC cracker, but Shell named a Pennsylvania site instead in 2012.
PTTGC and Marubeni said they will take 12-16 months to complete detailed engineering design and permitting activities for the proposed Ohio site. For nearly 2 years, PTTGC and Marubeni considered sites across the Utica and Marcellus shale formations.
If authorized, construction of the ethane cracker was expected to take 3-4 years.
Antero grows net output, slows completion rates
Antero Resources Corp. of Denver reported its first-quarter net production averaged 1,485 MMcfe/d, including 40,000 b/d of liquids. As expected, the company reduced its rig count to 11 from 21 while cutting its completion crews to 7 from 10.
First-quarter production represented an organic production growth rate of 89% compared with Antero's first quarter 2014.
Completions were limited in the Utica while Antero transitions to seven-well pads. The company plans 45 completions for the rest of 2015, including three seven-well pads to be completed in the third quarter.
Antero operated four drilling rigs and five completion crews in the Utica as of Apr. 15.
Meanwhile in the Marcellus, Antero completed 41 wells during the first quarter. The company said its average lateral length was 8,150 ft. Antero operated seven Marcellus drilling rigs and two completion crews during April. Previously, Antero said it would slow completions (UOGR, Mar/Apr 2015, p. 18).