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.