
Company News
Neighbors have heard more about a plan to drill for gas in Jefferson Hills.
Representatives from DPS Penn, LP, which leases land for Chesapeake Energy, an oil and gas drilling company, spoke to residents at a meeting last week.
They didn't ask for landowners to sign agreements on the spot, but wanted to offer information about the company and give people time to consider it, said Chad Mackert, a DPS Penn representative.
"We want to let you kind of digest that over time. We're not making any offer to anyone tonight," he said. "We create relationships with the landowners and we want to build relationships with the community."
The yearend 2009 production figures are estimated to be 80 MMcfe/d net and 200 MMcfe/d gross operated. Yearend 2010 estimates are 200 MMcfe/d net and 500 MMcfe/d gross operated.
With current average production of 30 MMcfe/d net and 50 MMcfe/d gross operated, the company is the play’s largest driller with 15 operated rigs. Chesapeake has enlarged its leasehold by 150,000 net acres to 1.45 million net acres in the quarter ended June 30.
The study notes a consistent increase in annual drilling and projects a $25 billion contribution to the Commonwealth's economy in the year 2020. This level of activity would generate almost $1.4 billion in state and local tax revenue and create more than 176,000 new jobs.
The curtailment of drilling activity that would result from the imposition of the newly proposed severance tax would generate $1.4 billion less state and local total tax revenue between now and 2020 than if the industry is allowed to grow without the new proposed tax.
Members of the Marcellus Shale Committee also brought a drill rig and a computerized van used in the fracture stimulation process for the public to view and tour.
"The Marcellus Shale story is being told in many counties, but it also needs to be told here in Harrisburg. It's a story of new jobs, economic investment, energy development and environmental stewardship," said State Rep. Tim Solobay (D-Canonsburg), co-chair of the House Natural Gas Caucus. "Washington County was the home to the first Marcellus Shale well almost five years ago. It has improved all aspects of the county's economy, and has great promise for decades to come."
"This is a great opportunity for Pennsylvania to become a leader in developing the clean-burning energy our nation needs, and it is being realized without government subsidies, tax-increment financing or other incentives that are too often required for economic development initiatives," said State Rep. Brian Ellis (R-Butler), co-chair of the caucus. "We need to support this industry by working with them on challenges such as water treatment technology and infrastructure investment, and not work against them by imposing a severance tax just as drilling activity is getting a foothold here."
The Energy Information Administration releases its weekly report at 10:30 a.m. EDT.
A reading above or below estimates can influence market trading.
Click Here to download the May 2009 DPS Penn Newsletter. (1.4mb, pdf)
2008-2009 DPS Penn, LP All rights reserved.
4 Grandview Circle, Suite 201 | Canonsburg, PA 15317 | Phone: (724) 705-0444
Site design by Asayo Creative Inc.
