Keep in mind that Oklahoma recently raised taxes on oil & gas production in the state, and that production taxes are based on revenue. The production tax will now be 5% during the first three years of a well’s producing life before the rate goes up to 7% thereafter. Last year, the tax increase went into effect but note the higher rates haven’t been fully reflected in Continental’s financial performance yet. This is probably why Continental is expecting production taxes to increase to 8.0-8.3% of wellhead revenue this year. [It seems interesting that Oklahoma is taxing stripper wells at a higher rate than non-stripper wells.]Note: with regard to the CLR Pletan well below, the Pletan-Dvirnak wells are tracked here.
Wells coming off the confidential list --
Wednesday, February 20, 2019: 86 wells for the month; 189 wells for the quarter
- 34978, 1,445, Hunt, Halliday 146-93-12-1H-4, Wolf Bay, t12/18; cum 6K over 13 days;
- 34513, 1,235, Nine Point Energy, Fritz 150-101-32-29-8H, Pronghorn, t9/18; cum 74K 12/18;
- 33850, 1.419, Oasis, Berry 5493 41-7 6B, Robinson Lake, t9/18; cum 92K 12/18;
- 33094, 3,043, CLR, Sakakawea Federal 14-19H, Elm Tree, t1/19; cum --
- 32173, SI/NC, Hess, CA-Anderson Smith-155-96-2635H-6, Capa, no production data,
- 32163, SI/NC, Hess, CA-Anderson Smith-155-96-2635H-5, Capa, no production data,
- 30536, SI/NC, Slawson, Wolf 1 SLH, Big Bend, no production data,
- 30138, 2,574, CLR, Pletan 7-18H, Jim Creek, t10/18; cum 101K 12/18;
- 28956, SI/NC, Hess, EN-Jeffrey-15509402215H-9, Alkali Creek, no production data,
- 28955, SI/NC, Hess, EN-Jeffrey-155-94-2215H-8, Alkali Creek, no production data,
RBN Energy: will Mariner East setbacks impact LPG exports and pricing?
Energy Transfer’s Mariner East pipeline system was supposed to help resolve a growing problem for producers in the “wet” Marcellus and Utica plays — namely, the need to transport increasing volumes of LPG out of the Northeast, especially during the warmer months, when in-region demand for LPG is low. The pipeline system also was meant to spur LPG and ethane exports out of Energy Transfer’s Marcus Hook marine terminal near Philadelphia. So how are things going? Well, the now five-year-old, 70-Mb/d Mariner East 1 pipeline, designed to transport ethane and propane, has been offline ever since a sinkhole exposed a part of the pipe late last month. The 275-Mb/d Mariner East 2 pipe is finally in operation and enabling a lot more LPG to move to Marcus Hook, but for now it can only run at about 60% of its capacity. And last Friday, a key Pennsylvania regulator suspended its review of outstanding water permit applications for the remaining piece of ME-2 and the parallel 250-Mb/d ME-2 Expansion project, and threw into doubt how long it might take to finish the Mariner East system and ramp it up to full capacity. Today, we begin a series on recent Mariner East developments and explain how, despite the mixed bag of Mariner East news in recent weeks, the situation is not as bad as it may seem.