Chesapeake signs on to gas deal
Chesapeake Energy Corp. has struck a 10-year deal with Methanex Corp. to supply all of the natural gas needed at the Canadian company's methanol plant in Louisiana, the companies announced late Wednesday. The plant, which will produce 1 million tons of methanol a year, is expected to be operational by the end of 2014. It will start receiving natural gas from Chesapeake at that point. “The unique structure of this transaction provides return certainty and price diversification for Chesapeake while providing margin protection and price stability for Methanex,” said James C. Johnson, Chesapeake's senior vice president of marketing.
Marathon exec joins OERB panel
A Marathon Oil Corp. executive has been appointed to the board of the Oklahoma Energy Resources Board. Michael J. Stover, who is Marathon's Mid-Continent asset manager, was appointed by state Senate President Pro Tem Brian Bingman. Stover will be one of 20 members of the board. “The OERB reflects the dedication and commitment of the oil and natural gas industry in Oklahoma,” Stover said. “I'm excited to be joining the organization and look forward to helping with its efforts in education, well site restorations and more.”
WPX reports new discovery
TULSA — WPX Energy could significantly increase its daily natural gas production and reserves, thanks to a new discovery in western Colorado's Niobrara shale. WPX announced this week that a discovery well produced an initial high of 16 million cubic feet of gas a day. The well produced 12 million cubic feet a day over the past 30 days as WPX worked to ensure maximum resource recovery. WPX has lease rights to about 180,000 acres in the play, which underlies its position in the Piceance Basin. “We have a large-scale position in the Piceance, where we are the lowest-cost, most efficient producer in the basin. We know the Piceance is a world-class asset. Now the results of our Niobrara well are showing that our acreage has even greater reserves potential,” CEO Ralph A. Hill said. He said the discovery could double WPX's current reserves of 18 trillion cubic feet of gas.
Ala. governor is new chairman
Alabama Gov. Robert Bentley has been named chairman of the Interstate Oil and Gas Compact Commission for 2013. The Oklahoma City-based group promotes conservation and efficient recovery of domestic oil and natural gas. “A strong energy supply is crucial for job creation, for economic stability and for making oil and natural gas more affordable,” Bentley said. “We must reduce our dependence on foreign oil while making wise use of our domestic energy resources. As chairman of the IOGCC, I will work closely with other states on policies that help us achieve that goal.” Oklahoma Energy Secretary Mike Ming is the group's second vice chairman.
Blueknight plans cash payout
Blueknight Energy Partners will pay a quarterly cash distribution of 11.5 cents a unit, the partnership announced this week. That is a 2.2 percent increase over the previous quarter. The distribution will be paid on Feb. 14.
Rose Rock to boost distribution
TULSA — Rose Rock Midstream LP on Thursday announced it will pay a cash distribution of 40.25 cents a share on Feb. 15. That is an 11 percent increase over the previous quarter. “We are pleased to announce the fourth consecutive increase in the distribution to RRMS limited partner unit holders since our initial public offering in December 2011,” CEO Norm Szydlowski said.
Osage reports well production
Osage Exploration and Development Inc. achieved one-day production of 623 barrels of oil equivalent from its latest Horizontal Mississippian well in Logan County, the California company announced this week. The well, which had its first oil sell Dec. 30, has produced more than 6,700 barrels of oil equivalent to date, with crude oil accounting for more than 90 percent of its production. “We are very pleased with the initial production of the Krittenbrink 1-1H and with the early results of our accelerated drilling program,” CEO Kim Bradford said. Osage and its partners intend to drill more than 20 wells in the area this year.
From staff reports