the northeast ong marketplace - january 2016

PRSRT STDU.S. POSTAGE PAIDBECKLEY, WV 25801

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JANUARY 2016PO BOX 1001 • YOUNGWOOD, PA 15697 | WWW.ONGMARKETPLACE.COM

O&G: UPSTREAM - Page 6-7: Production: Flowing and Sustaining the Well

O&G: MIDSTREAM - Page 8: NEXUS Gas Transmission Project Moves Forward

INDUSTRY INSIGHT - 2-13: Steel Nation - Buildings, Engineering and Environment

NEW TECHNOLOGY - Page 16: Hand Held Ink Jet Printers for Asset ID

INDUSTRY DEVELOPMENT - Pages 18-19: LOLA Energy: Redefining Shale Success

S T E E L B U I L D I N G S • E N G I N E E R I N G • E N V I R O N M E N T A L724.225.2202 | www.steelnationbuildings.com

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January 2016

Formed in April 2015, the Appalachian Pipeliners’ Association is an Oil & Gas industry organization promoting pipeline engineering and operational best practices benefiting both association membership and the pipeline industry as a whole. The notion of forming the APA in the northeast came from co-founder, Louise Mancuso Wolf researching similar pipeliner organizations in, Tulsa, OK; Oklahoma City, OK; Houston, TX; Denver, CO; etc. Louise took her idea to industry professional Wendy Knafel-Driscoll and together filed the non-profit filings with the assistance of law firm Cohen Seglias Pallas Greenhall & Furman, PC. In eight months the APA has accomplished two successful fundraisers, recruited 165 members, administered three successful dinner/speaker events and voted in our Board of Directors to set a precedence and lead the organization forward. Supporters of the organization have included operating, transmission & midstream companies as well as several service companies.Please visit the APA’s website for a complete list of supporters.

The APA is both non-profit and non-political focusing on raising scholarship funds supporting secondary educational opportunities for the youth of the northern Appalachian region. Funds are raised through memberships, donations and annual golf & clay shoot events. Association membership

assembles socially each month for dinner and speaker presentations discussing matters relevant to the pipeline industry. These dinner meetings are held at the Hilton Garden Inn, Southpointe the third Tuesday of each month from September through May.

We are currently seeking membership from Pipeline Industry Professionals: owners, operators, midstream,transmission, and LDC organizations as well as encouraging representatives of operating companies, engineering & environmental firms, ROW/Land, and material suppliers to join and become actively involved in being on the forefront of the regulatory, environmental, and technological advances in the industry.

To reach a board member or for additional information on membership or registering for our upcoming events, please visit our website at www.appalachianpipeliners.org

ONG MARKETWATCH


ARTICLESO&G: UPSTREAM: Production: Flowing and Sustaining the Well ............................................. 6-7

O&G: MIDSTREAM: NEXUS Gas Transmission Project Moves Forward ........................................... 8

INDUSTRY INSIGHT:Steel Nation - Buildings, Engineering and Environment ........................ 12-13

NEW TECHNOLOGY: Hand Held Ink Jet Printers for Asset ID ................................................................ 16

INDUSTRY DEVELOPMENT: LOLA Energy: Redefining Shale Success ............................... 18-19

ADVERTISER INDEXALBERTA RIG MATS ........................................... 14ALPINE ELECTRIC .............................................. 15BRAD PENN LUBRICANTS................................. 14CALU ................................................................... 15CHANCELLOR INSURANCE ............................... 14CPI SERVICE ......................................................... 5CST INDUSTRIES ............................................... 19DIRECT RESULTS ............................................... 13ERNST SEED ....................................................... 17ETC ........................................................................ 3GUTTMAN ........................................................... 10HKRENTS.COM ................................................... 13LEE REGER BUILDS ........................................... 15LYDEN OIL COMPANY ........................................ 17MCCLUSKEY ....................................................... 14NEWSON-GALE .................................................... 2MID-ATLANTIC STORAGE ................................. 14NORTH AMERICAN FIELD SERVICES ............... 14OIL CENTER RESEARCH ...................................... 4OILFIELD CONNECT ............................................. 9PREMIER SAFETY & SERVICE INC ................... 17PSB INDUSTRIES ............................................... 15TANK CONNECTION ............................................. 5TOTAL EQUIPMENT ........................................... 15TRI TOOL .............................................................. 7WEAVERTOWN ENVIRONMENTAL ................... 15

CALENDARSASSOCIATION MEETINGS ................................... 4NETWORKING EVENTS ..................................... 17TRAINING & WORKSHOPS ............................... 14UPCOMING EVENTS .......................................... 11

EVENTSMARCELLUS-UTICA MIDSTREAM ..................... 20

CONTACT US FOR ADVERTISING,INFORMATION OR MAILING LIST CHANGES:


PO Box 1001 • Youngwood, PA 15697724-787-4451

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The Northeast ONG Marketplace will not be liable for any misprint in advertising copy which is not the fault of The Northeast ONG Marketplace. If a misprint should occur, the limits of our liability will be the amount charged for the advertisement.

We do not assume responsibility for the content of advertising or articles herein. Any warranties or representations made in the advertisements are those of the advertisers and not The Northeast ONG Marketplace. Any warranties, representations or opinions made in the advertisements or articles are those of the contributors and not The Northeast ONG Marketplace.

ASSOCIATION MEETINGS

AESC Annual Winter Meeting | February 10-11, 2016Marble Falls, TX - www.aesc.net

PIOGA Winter Meeting | February 23-24, 2016Seven Springs, PA - www.pioga.org

IOGAWV Annual Winter Meeting | February 2-3, 2016 Charleston, WV - www.iogawv.com

2016 OOGA Winter Meeting | March 16 – 18, 2016Columbus, OH - www.ooga.org

January 2016

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By: Adam Larson, Staff Writer, Shale Media Group

The entire year of 2015 was known for its low oil and natural gas prices. During this pricing environment, three notable trends emerged amongst producers. First, operators were drilling new shale wells, but pumping the brakes on completing the wells. Second, it was noted that operators were choking back already producing wells in an effort to reduce volumes altogether.

Thirdly, and most notably, in a time during which things are slow, operators are honing in on optimizing production at areas that are yielding high numbers. Some of this optimization includes installing more efficient artificial lift systems, choking back wells to find a balance between flowing condensate and gas, and finding unique ways to capture natural gas liquids.

Long-term, before operators start to streamline efficiencies, the production phase starts at the well and ends with product changing custody to midstream. After the flowback crew rigs down and moves out (RDMO), the well is now ready to flow through permanent production equipment and pipe on-site.

Starting at the wellhead, production runs 24/7, 365 days. On the wellhead, casing and tubing pressure gauges monitor pressure within the different annular areas and in the tubing. Once flowing, annular pressure comes from a variety of sources. The major source is heat from produced fluids and expanding fluids in the inner and outer annuli. Another source is leak points where there are threaded connections, packers, and seal assemblies.

Covered in the construction and facilities article in last month’s edition, the two-phase or three-phase flow routes to the sand trap, gas processing unit (GPU), heater treater (HT), and low pressure tower (LPT). If the well is running three-phase product, which includes gas, water, and condensate, there will also be a stop at the compressor, stabilizer skid, and production tank.

The stabilizer skid inlet will take a condensate stream through a plate exchanger, line heater, insulated three-phase separator, and cooling rack. After zigzagging a path on the cooling rack, NGLs will collect in the NGL separator and flow into a Blow Case via gravity feed. The key purpose for the stabilizer skid is to further stabilize the condensate stream and also capture valuable NGLs.

The NGLs will then be sent to the bullet tanks for storage. In wet spots of the Marcellus and Utica, some producers are implementing bullet tanks, but are also getting a helping hand from midstream companies to use NGL pipelines. The employment of these pipelines reduces operating costs for producers since hauling NGLs from bullet tanks is expensive.

On pads producing more than 50 BOPD (barrels oil per day) the compressor takes in flash gas from the HT, LPT, and stabilizer skid. The compressor will essentially push gas into the sales line by overcoming line pressure.After condensate runs into the production tanks, NGLs collect or run through a pipeline, the dry gas is routed to a meter station and sent on to midstream. The Custody Transfer Point (CTP) is officially where the product changes hands and becomes the responsibility of midstream. The midstream company will provide a connection for the producer to tap into a pipeline so the gas can be sent for further processing and separation.

More specifically, a gathering line (4-30 in diameter) will come off the pad and later on feed into a transmission line (24-36 in diameter), which often spans over a great distance at greater volume and pressure.

In addition to all of the production equipment, human interaction is vital to a well. A Production Superintendent supervises the operation of all production pads, whereas the Production Foreman oversees a group of Lease Operators. The Lease Operator is responsible for a large cluster of

PRODUCTION: FLOWING AND SUSTAINING THE WELL

O&G:UPSTREAM

January 2016

pads that are within close proximity to each other. The Lease Operator will follow a daily route.

Arguably, the Lease Operator is the bread and butter of production operations. Since problems with a pad can spontaneously pop up, especially in the winter, the Lease Operator is given the daunting task of keeping the

pad’s production equipment up and running. He or she will empty out the sand traps daily, empty out all drips on equipment, schedule tank unloads, use rebuild kits to patch up equipment, ensure that equipment is up to industry standards, and check production numbers off each well.

After the well is running for some time, production starts to decline. In fact, a decline curve analysis can be performed where engineers will predict the future production based on past production history. The analysis technique is leveraged to predict well performance and life. A production decline for a shale gas well experiences a hyperbolic decline followed by an exponential tail decline.

At a certain point in the well’s life, optimization comes into play and the well needs help to bring hydrocarbons to surface. An artificial lift system is installed; two prominent lift systems include plungers and downhole sucker-rod pumps.

A plunger lift is economically feasible in high-gas/liquid ratio (GLR) gas and oil wells. Plunger lift uses a free piston that travels up and down in the well’s tubing string, which minimizes liquid fallback and uses the well’s energy more efficiently. As with other artificial lift methods, the purpose of plunger lift is to remove liquids from the wellbore so that the well can be produced at the lowest bottomhole pressures (BHP).

When it comes to sucker-rod pumps, there are a slew of types and sizes. The science behind it is to ultimately optimize so that production sees little pump run time. To achieve this, all pump components, sizes, and materials must be custom-fitted to the specifications of that particular well. Third-party pump companies come on-site to evaluate the well and run computer models to best determine what equipment to fabricate and install. Production is the lifeblood of the upstream process. In a time where the industry is booming, this area is critical, but in a time of depressed commodity prices, it’s just as important.

*This article is the fourth and final in a series of articles looking at the entire upstream process. The first article in the series appeared in the October edition of ONG and focused on drilling; the second appeared in the November edition and centered on completions; the third article appeared in the December edition and focused on construction and facilities.

Shale Media Group (SMG) is the news, information, and education resource dedicated to the shale oil and gas industries by messaging across video, Internet, publications, events, and radio. For more, check out ShaleMediaGroup.com to access all platforms. Adam Larson is a Staff Writer with Shale Media Group. Adam also studies Petroleum and Natural Gas Engineering at Penn State University. Contact him at [email protected].

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By: Arthur Diestel, NEXUS Gas Transmission

The proposed NEXUS Gas Transmission (NEXUS) Project will relieve pipeline infrastructure constraints that are significantly impeding access to natural gas from the Marcellus/Utica Region. NEXUS proposes to construct approximately 255-miles of 36-inch interstate natural gas transmission pipeline to deliver 1.5 billion cubic feet per day (Bcf/d) of natural gas from eastern Ohio to existing pipeline system interconnects in southeastern Michigan, as well as new market connections in Ohio, as detailed below. In Michigan, NEXUS will contract for or lease capacity from DTE Energy Gas for transportation services in eastern Michigan to provide NEXUS with access to Vector Pipeline, Michigan markets and natural gas storage and balancing services. Vector Pipeline will provide NEXUS with additional access to eastern Michigan and Canadian markets and natural gas storage and balancing services.

In November of 2015, NEXUS reached a significant milestone as it formally applied to the Federal Energy Regulatory Commission (FERC) for a Certificate of Public Convenience and Necessity to construct and operate the approximately 255-mile interstate natural gas pipeline. By reaching this major milestone in the regulatory process, NEXUS remains on track for a fourth-quarter 2017 in-service date. The FERC review process will continue to provide opportunities for public input by landowners, residents and other stakeholders. The formal application requests that FERC issue an approval of the project in the fourth quarter of 2016 with construction anticipated to begin in early 2017.

The FERC application initiates the agency’s formal environmental review of the project as the lead federal agency charged with coordinating National Environmental Policy Act (NEPA) compliance in reviewing pipeline certificate applications. During this period, FERC will evaluate all potential environmental impacts, as well as the company’s plans to address and minimize those impacts. The application provides a full evaluation of alternatives that were identified and evaluated by NEXUS during the siting and refinement stages of the proposed project. The primary objectives in evaluating alternatives are to avoid, minimize, and if necessary, mitigate potential adverse effects while satisfying the project’s purpose and need.

The project’s development team has maintained a commitment to collaboration and comprehensive consultation with stakeholders. Over the past 17 months, NEXUS has worked with landowners and stakeholders to develop a viable pipeline route that lessens impacts to landowners and the environment while meeting or exceeding customer needs, constructability requirements and safety regulations. Approximately 87% of the preferred route filed in November is in agricultural areas and/or follows existing utility corridors in Ohio and Michigan, thereby limiting the

number of affected residential landowners and reducing environmental impacts. To date, NEXUS has surveyed the vast majority of the proposed route.

As NEXUS stated in its recent FERC filing, it has recently signed a number of agreements for market connections with industrial facilities, power generators and local distribution companies along the route. As demonstrated by these market connections contained in the filing, the route is strategically positioned to expand gas service while minimizing environmental impacts. The market-based approach of siting the NEXUS pipeline stands to benefit customers all along the route.

In addition to the eleven Ohio market connections disclosed in the recent FERC filing, NEXUS is in ongoing negotiations with additional potential customers along the route. While NEXUS already has the contractual commitments necessary to place the facilities in service, they are able to continue to provide access to prospective customers and businesses even after the project is placed into service. The access provided by NEXUS will help lay the foundation for long-term economic growth in Ohio, Michigan and communities across the U.S. Midwest.

NEXUS will enable communities along the proposed route to attract employers and provide low-cost energy to residential consumers and businesses. Local gas distribution companies as well as producers plan to use the NEXUS pipeline to provide their customers with a vital energy source, ultimately benefiting consumers and local economies. Businesses patiently awaiting the federal permitting process are eager to access the abundant supply of natural gas provided by NEXUS to attract, grow and keep jobs in the region. The construction and operation of the pipeline alone is estimated to create more than 6,000 jobs and add $2 billion in capital investment. Once the project is placed into service, the economic benefits and future opportunities for growth to the region are immeasurable.

Placing NEXUS into service on schedule will play a critical role in long-term energy security and economic viability for the region. A timely review of the NEXUS application will help meet national environmental goals and provide affordable, more reliable energy to consumers. As recently as 2010, Ohio met nearly 95% of

NEXUS GAS TRANSMISSION PROJECT MOVES FORWARD WITH FILING OF CERTIFICATE APPLICATION

O&G: MIDSTREAM

its energy needs from coal. The trend toward greater reliance on natural-gas-fired generation (shown below) is likely to continue in light of increasing retirement of coal-fired power plants. If authorized, the NEXUS Pipeline would provide the necessary infrastructure to support increased natural gas generation by the early 2020s, thereby supporting Ohio and Michigan in meeting the EPA’s proposed target emission rates.

By improving the region’s energy infrastructure and expanding access to affordable, reliable energy, NEXUS will serve as a foundation for long-term economic growth in Ohio and Michigan. This will not only help existing businesses to grow and prosper, but it will also enhance the region’s economic competitiveness by attracting new manufacturers and other large employers that rely on affordable energy to power their operations.

Once the pipeline is operational, NEXUS will generate tens of millions of dollars in annual tax revenue for local governments across the region that will allow counties to make important investments in schools, roads, public safety and other key priorities of local government – all of which improve the overall quality of life for the people who live in these communities.

As with any large-scale infrastructure project, NEXUS will also purchase a significant amount of goods and services from local businesses across the region. NEXUS encourages local vendors and suppliers to sign up on the NEXUS website to be considered as a potential vendor for the NEXUS project.

To learn more or to sign up as a vendor or supporter of the NEXUS project, please visit www.nexusgastransmission.com.

January 2016

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UPCOMING EVENTS

Denotes National EventVisit our website for links to these events

WWW.ONGMARKETPLACE.COM/EVENTS

26-28Marcellus-Utica Midstream Pittsburgh, PA | www.marcellusmidstream.com

2-3IADC Health, Safety, Environment & Training Conference Houston, TX | www.iadc.org

9-10Power and Gas M&A Symposium New York, NY | center.snl.com

9-11SPE Hydraulic Fracturing Technology Conference The Woodlands, TX | www.spe.org

9-12NAPE Summit Houston, TX | www.napeexpo.com

16-17Ohio Energy Management Conference Columbus, OH | www.mecseminars.com

16-18Midstream Summit Houston, TX | www.infocastinc.com

1-3IADC/SPE Drilling Conference Fort Worth, TX | www.iadc.org

22-23SPE/ICOTA Coiled Tubing and Well Intervention Conference Houston, TX | www.spe.org

6Utica Upstream Canton, OH | www.shaledirectories.com

6-8PESA Annual Meeting San Diego, CA | www.pesa.org

11OGIS New York New York, NY | www.ipaa.org

12-13National Fluids Conference & Exhibition Houston, TX | www.aade.org

19Upstream PA State College, PA | www.shaledirectories.com

21Michigan Petroleum Conference Acme, MI | www.michiganoilandgas.org

26-27Ohio Valley Oil and Gas Expo St. Clairsville, OH | www.ohiovalleyoilgasexpo.com

FEBRUARY

MARCH

APRIL

JANUARY


By: Mark Casey, President, SteelNation Buildings, Inc.Photos by midstreamphoto.com

From all of us at Steel Nation, we want to wish our clients, vendors, contractors, partners and all of our brothers & sisters in the Oil/Gas Industry a very safe and prosperous New Year! 2015 was a safe and productive year for Steel Nation, and 2016 is starting with exciting new changes that will benefit our clients and vendors as we continue our pursuit of excellence in designing and building the absolute

safest, coolest and quietest Compressor/Transmission/Gas Processing Plants in the energy sector.

Headquartered in the center of the Marcellus & Utica Shale plays in Washington, Pennsylvania, Steel Nation has quickly become the go to design/builder for all successful natural gas projects. In 2015, Steel Nation completed 65 projects in Pennsylvania, Ohio, West Virginia and Texas. Steel Nation was also awarded over 70 new projects, with most scheduled to be completed by the end of 2016. Our main goal is “Safety First – For Life” and we are very proud that we did not have any

safety violations or incidents in 2015, and our EMR Rates continue to among be the lowest of any supplier in the O&G industry.

In 2015, Steel Nation continued to serve many of our existing customers and gained many new clients in both the Mid-Stream and Transmission side of the industry.

We are pleased to announce many new changes for 2016, and beyond. Including a restructuring that includes the existing parent company, Steel Nation, Inc. and 3 new business entities outlined below:

1. Steel Nation Buildings, Inc.Since 2008, the design-build of pre-engineered metal buildings has been at the core of our business. This group represents our core business focused on providing the absolute Safest, Coolest and Quietest Compressor/Transmission/Gas Processing Plants in the energy sector. This will continue to be the core business at Steel Nation. We continue to offer a wide variety of services to our customers under this umbrella including: building maintenance, retro and demo work; combustion air intakes; electrical installation; fire detectors; gas detectors; heating (electrical & fuel gas); and new air handing systems. The other entities listed below have been created to supplement the buildings business and provide greater value added services to our existing customer base.

2. Steel Nation Engineering, Inc.Since 2014, Steel Nation has brought most of our engineering service “in house” to quickly serve our clients’ needs. Under the leadership of Ed Hirzel, P.E., we have continued to build our team to include full-time AutoCAD designers and detailers to focus on foundation, HVAC, process flow, electrical, sound mitigation, air handling and other critical disciplines that are crucial to designing safe and effective natural gas facilities. These services also include permitting and full interior design of office and occupied spaces. We also continued to provide a variety of ad hoc services such as building and crane investigations, above ground tank inspection services, and customized engineering solutions.

3. Steel Nation Environmental, Inc.Since our opening on October 1st 2015, Steel Nation Environmental has been dedicated to supplying the energy sector with quality landscape and erosion control products. Our product line contains limestone, gravel, sand, retaining wall materials, drainage systems, erosion control blankets, silt sock, silt fence, and many other industry specific items. Steel Nation Environmental closely monitors the most current technology and provides those options to our partners as it evolves. We understand the time sensitive nature of the industry and from our centrally located supply yard in Canonsburg, Pa, we are able to meet the pace of business for our customers.

I continue to serve my appointment on the Pennsylvania DEP’s Citizen Advisory Council. It has been an honor to serve in this position after being nominated by Pennsylvania State Representative Brandon P. Neuman (D-Washington County). The Citizen Advisory Council’s is made up of 18 geographically, politically, and professionally diverse members. Its mission is to “ensure that all people of the Commonwealth enjoy the benefits included in Article 1, Section 27 of the Pennsylvania Constitution” which states “the people have a right to clean air, pure water, and to the preservation of the natural scenic, historic, and aesthetic values of the environment.” The volunteer members of the CAC meet eleven times a year

STEEL NATION - BUILDINGS, ENGINEERING AND ENVIRONMENTAL

INDUSTRYINSIGHT

Photos provided by midstreamphoto.com

January 2016

in Harrisburg to discuss the state’s environmental laws and make improvement recommendations to the DEP. The Council strives to represent all people of the Commonwealth and endeavors to bring a collective view of the public interest in environmental protection and natural resources, forged from the Council’s own diversity of personal experiences and perspectives.

Finally, I would like to thank all of our clients for their continued trust in Steel Nation. And to all of our clients, vendors and partners, best wishes for a safe, productive and prosperous New Year!

All The Best,

Mark CaskeyPresident

Photos provided by midstreamphoto.com


28KOGA Eastern KY Technical Seminar Prestonburg, PAwww.kyoilgas.org

7SafeLand USA Washington, PAwww.rjrsafety.com

26SafeLand USA Cambridge, OHwww.rjrsafety.com

9SafeLand USA Bridgeport, WV www.rjrsafety.com

23SafeLand USA Cambridge, OH www.rjrsafety.com

10SafeLand USA Washington, PAwww.rjrsafety.com

22SafeLand USA Cambridge, OHwww.rjrsafety.com

30-April 1OGA Technical Seminar Dublin, OHwww.ohiogasassoc.org

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By: Katie Sutter, Marketing Director, Excelsior Marking

Asset identification for the oil and gas industry has its challenges. On any given day, there may be countless machines, tools and equipment on the job site. Keeping track of these assets can be challenging. “Traditionally, companies have used rather simple identification techniques,” noted Dave Sutter, President of Excelsior Marking. Techniques include labeling, stenciling, stamping, and tagging. All have their advantages and disadvantages.

A new technology is being introduced to the industry which can help with the marking process. Innovative hand held printers signal a new era in portable, ink-jet coding. Weighing in at

approximately two pounds, hand held printers use solvent based inks which are “sprayed” out of the device. Depending on the device they can be programmable via computer or wireless and offer several type fonts, characters, ink colors, and message capacities. To choose the type of hand held printer that’s right for your application answer the following:

1. What do I need to mark or identify?2. How clear or precise do I need the marking?3. What size do you need the type or mark to be?

Although the designs vary, with some “gun” styles, top handle, or machine mounted, all use some type of ink cartridge which eliminates the need for messy inks. All provide fast drying, clean printing on a variety of surfaces, including metal,

glass, plastic and concrete. In addition, all offer a clear, readable imprint. Most importantly, printing, will save valuable time over most other marking solutions.

Overall, hand held printers are easy to set up and use with a small amount of training. Most distributors can help with the set up and servicing. Some models will accommodate logos and special characters. The printers’ include rechargeable batteries with more than respectable battery life. The devices are relatively rugged, although, a wrist strap is recommended for the gun style.

“We currently have very satisfied customers using the technology in the packaging and lumber industries,” says Sutter. “They are amazed at the time savings!”

Excelsior is a full service Marking Products Company located in Akron, Ohio. The company offers solutions for marking on all types of products, as well as, manufactures marking products. Some solutions include steel branding dies, stencils, rubber stamps, roll coders and steel stamps. Industries served include oil and gas, tire manufacturers, pallet companies, and package printers. For more information contact [email protected] or visit www.Excelsiormarking.com.

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By: Kristie Kubovic, Director of Communications, Shale Media GroupImages Courtesy of: LOLA Energy

It is no secret that the shale oil and gas industry is currently facing challenges. As a result many companies are laying off workers or remaining at their current levels.

However, this is not the case with all companies. There are also success stories to be told.

LOLA Energy, a newly formed independent oil and gas company, is hoping to be one of those success stories and by all accounts looks to be on target for that achievement. Headquartered outside of Pittsburgh in Wexford, Pennsylvania, the company is led by an executive management team

with extensive experience in the Appalachia Basin who also previously worked together at EQT. When combined, the company’s four person management team of Chief Executive Officer Jim Crockard, Chief Operating Officer Richard Hill, Chief Geosciences Officer Lindell Bridges, and Chief Commercial Officer Dave Bradley has nearly a century of experience in the shale oil and gas industry.

During Crockard’s 14 year career at EQT, he helped transform the company into a leading independent shale oil and gas producer and led more than $2 billion

of public debt and equity raises to fund EQT’s horizontal development programs as Corporate Treasurer. Most recently while serving as EQT’s Senior Vice President of Business Development & Land, Crockard was responsible for all upstream acquisitions, divestitures, joint ventures, and land operations. Additionally, 27 year veteran Hill, who previously served as EQT’s Executive Vice President of Drilling & Completions, has worked across the globe for producers such as BP, Texaco, and NOWSCO. Bridges, a highly regarded 30 plus year oil and gas veteran, pioneered numerous early technological advances in EQT’s Marcellus shale gas development program, while Bradley, who worked at EQT for 14 years, most recently

served as the company’s Senior Vice President of Midstream Asset Management and Sales and supported the IPO of EQT Midstream Partners, LP.

“I am ecstatic that we have assembled together a group of highly talented oil and gas professionals who have the deep experience in the Appalachian Basin required to pursue horizontal shale development opportunities in our own backyard. As a lifelong resident of Southwestern Pennsylvania it feels very rewarding to create a locally owned, locally accountable oil and gas operating company,” expressed Crockard. In fact LOLA Energy’s name represents exactly that and stands for Locally Owned, Locally Accountable.

Crockard added, “We are a deeply experienced team that has already drilled over 2,100 horizontal shale wells while we were at EQT. Three of our four principals from that team are natives of Western Pennsylvania and have deep roots here in our backyard where we are investing. We have that know-how and capital, and are making new investments while the rest of the industry is largely scaling back their operations.”

Supporting their advances, LOLA Energy announced on December 8, 2015 that it had secured a $250 million equity commitment from leading energy and resources-focused global private equity firm Denham Capital. The company will use the capital to pursue the leasing, acquisition, exploration, and development of oil and gas properties in the Marcellus and Utica Shale plays in the Appalachian Basin.

Crockard relayed, “With the strong support of a sophisticated oil and gas private equity firm like Denham Capital, LOLA Energy is now ready, willing, and able to partner with our local landowners and their neighbors to economically develop their oil and gas rights in a safe and environmentally conscious manner.” Jordan Marye, Partner, Denham Capital, also added, “Denham is excited to partner with LOLA. We believe the founders’ deep, local roots and recent area successes provide a strong foundation to build a new exploration and production company in the country’s lowest cost gas basin.”

The extensive past work experiences of LOLA’s management team gives the new company an advantage. “We know the best rock to drill, including which rock is good geologically but may not be able to be developed due to other market factors. We also know how to drill and complete horizontal shale wells as efficiently as anybody else in Appalachia. We will absolutely have an advantage as a result,” explained Crockard.

In regards to the current state of the shale oil and gas industry, Crockard says, “We are fortunate to have not formed the company even a year ago; otherwise we might have made investments in a higher price environment that would be holding us back now.” In ways the current state of the industry has helped LOLA. “The opportunities to find attractive assets and hire quality employees have been better than we anticipated for our start-up phase,” explained Crockard, who added, “We have more qualified candidates than open positions at the moment, [and] we have more leasing and asset acquisition opportunities in front of us than we would have ever guessed were out there.”

LOLA plans to bring 10 to 20 new jobs to the Greater Pittsburgh region within its first year of business and will utilize the services of local companies and professionals serving the shale oil and gas industry whenever practical. Crockard responded, “100% of our back office will be staffed in the Pittsburgh area; 100% of our technical and operations personnel will work and live in the greater Pittsburgh area as we are targeting our operations in the core of the Marcellus and Utica in Southwestern Pennsylvania, Northern West Virginia, and Eastern Ohio.”

In terms of the obstacles that many shale oil and gas industry businesses are facing, Crockard explained, “The primary obstacles are assets not in the right location, technical teams not fully up to the learning curve for shale development, and companies unable to fund their debt and their development programs – or a combination of these.” In order to overcome these obstacles, Crockard says, “LOLA Energy is focusing on areas where we have worked where shale assets can be developed

LOLA ENERGY: REDEFINING SHALE SUCCESS

INDUSTRYDEVELOPMENT

January 2016

economically even in today’s commodity price environment. Our technical team helped define the learning curve for EQT. We are also private equity backed so we can work through this environment even if it gets worse.” Crockard believes, “We have deep local relationships and the technical know-how to execute our plans

in the right place with the right people. As local residents and natives of the area, we fully intend to create win-win opportunities for our local landowners and local vendors that collaborate with us.”

The company has already began acquiring shale oil and gas properties for horizontal shale oil and gas development in core areas of the Marcellus and Utica Shale plays. If the management team of LOLA Energy’s deep past technical experiences and commercial focuses are any indication of the future, this new endeavor looks to be another success story in the shale oil and gas industry.

Shale Media Group (SMG) is the news, information, and education resource dedicated to the shale oil and gas industries by messaging across video, Internet, publications, events, and radio. For more, check out ShaleMediaGroup.com to access all platforms. Kristie Kubovic is the Director of Communications at Shale Media Group. Contact her at [email protected].

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and Caiman Energy II

Kevin HyattVice President Commercial and Business Development

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and Industry Operations API

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JANUARY 26-28, 2016

THE HEART OF THEREVOLUTION

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With an estimated 1,200+ Tcf of natural gas, the prolific Marcellus and Utica shales are in the global spotlight. The world’s elite players redraw the map with each discovery. And despite economic headwinds, natural gas production is forecast to be a phenomenal 18.65 Bcf/d in January 2016. But all that gas has to go somewhere. Midstream operators are investing billions of dollars to give the region access to markets across the U.S. and beyond.

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